The last few years I’ve really been getting my finances together. I opened a Roth IRA 3 years ago and have VTI, VXUS, and a bit in BND. I stupidly had 100k in a regular savings account for way too long.. and the beginning of this year I opened a HYSA at 4.25%. Is it worth locking in a CD at 5.10%? Or looking into treasury bills when my cash is already getting a hefty interest rate while still being liquid? I recently opened a personal brokerage account with the same place I have my Roth IRA and was thinking of putting a good chunk of change in some more ETFs since they give a way better return long term.. what’s everyone’s thought? What are yall doing with your money??
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If you don’t have a plan to spend it in the next 3-5 years (such as for house down payment, car, school, etc), then a brokerage account in VTI/VTSAX is great. You’ll capture the stock market gains with no effort (but some short-term risk). That’s what I do with my excess earnings every month (after monthly expenses, retirement contributions, etc).
If you might want to spend the money in the next few years, then HYSA is perfect as you can get as much interest as possible, with no risk of losing the capital short-term. That’s what I did when saving up for my house down payment.
Best of luck and congrats on your phenomenal savings so far!
I'm not super knowledgeable about finance stuff but I did just open up a cd because it was short term at 5.10%. There's probably investments with higher returns but this was just a super safe option in my opinion and it's very unlikely I'll need any of that money within the next 10 months.
Global index fund. Only for saving 5-10 years.
https://www.businessinsider.com/personal-finance/how-to-invest-in-index-funds?op=1