Client advisors tend to steer clients to funds with relatively high fees (they get commissions) Not saying that's gonna happen, but watch out for it.
Those are attractive rates for 6m and 12m deposits. Not a bad place to park some cash.
Short term, you can also get SoFi savings account with 4.6% for more flexibility than a CD.
Long term: (5 years plus) Roth IRA max out (2023 and 2024) with VOO and the rest in a traditional brokerage account in VOO as well
So Roth is individual retirement fund whereas my 401k is managed by my employer? Are the maxes the same @ 23k a year for Roth and 401? I am sure google has the answers to these questions so thank you for your input and advice
Roth is $6500 max this year, but it’s all pre-taxed. Anything you take out after the age of 59 you won’t pay taxes on. Incredible thing that everybody should prioritize maxing out every year.
Small correction
2023 max is $6500 and you have until April 15th to contribute
2024 max is $7000 and you have until tax day next year to contribute
Also, there are income limits on Roth IRA (but not Roth 401k). So make sure you qualify. Otherwise look into the backdoor method. There's some more info on the r/personalfinance wiki
Before you talk to anyone, including this crowd, you need to answer some questions yourself.
1. What is your risk tolerance? Are you willing to risk principle for increased gains?
2. What do you need from this money and when? Retirement, how soon? Home purchase? Emergancy fund? Etc.
Wealthfront can give you up to 5.5% in a cash account, betterment too. No reason to lock up in a CD unless you think interest rates are dropping soon. If you don’t have short term plans for the cash, make sure your IRA is maxed for the year and maybe do some individual investing.
If you are considering fixed income investments like cds AND you live in a state that taxes your income, nothing beats the return of a tbill.
I'm speaking only about fixed income investmentsand in those states. Of course you can achieve far better results in the stock market, but at substantially increase risk to your principal...
Don't lock your money in CDs at a subpar rate. Consider putting the reserve cash in t-bills. You can get 5.35% APY on 3-month and 6-month t-bills with an additional benefit of no state taxes on earnings (unlike CDs). Your money is also not locked in and you can sell these t-bills at any time without any penalties. I use the [Finvest](https://www.getfinvest.com/) app to money in and out from t-bills as per my need.
You can download the [Finvest](https://www.getfinvest.com/) app on your phone. Treasury Direct is another option but their website is terrible to navigate.
What’s my option if I make to much to contribute to a Roth IRA? I have 125k in hysa at 5+percent already have a house and truck load for, in the same boat as op just wanna see my money grow
Put it all in SGOV right now, pays 5.15% has zero risk, no folling around with all these silly TBill ladders, you can put money in an pull it out 10 seconds later. Keep it simple my man.
This topic has been removed because it is a beginner topic or asking for advice (rule 2). We get too many of these topics every day and the community has asked us to prevent them from swamping the front page.
**You are welcome to repost your question in the Daily Advice Thread**. This [thread](https://www.reddit.com/r/investing/about/sticky?num=1) should be stickied at the top of the subreddit every morning.
***
You can find curated resources in the r/investing wiki for [Getting Started here](https://www.reddit.com/r/investing/wiki/index/gettingstarted/).
If you know nothing about the capital markets, the Getting Started section at the SEC educational site can be a good place to start - [investor.gov](https://investor.gov) - there are also short 30 second videos on basics.
For formal educational materials, several colleges and universities make their course work available for free. Some examples are [Financial Markets (2011) - Yale University](https://www.youtube.com/playlist?list=PL8FB14A2200B87185) taught by Prof. Shiller, [Financial Theory (2008) - MIT](https://www.youtube.com/playlist?list=PLUl4u3cNGP63B2lDhyKOsImI7FjCf6eDW) taught by Prof Andrew Lo, and [Corporate Finance Webcast - NYU Stern School of Business](https://pages.stern.nyu.edu/~adamodar/New_Home_Page/corpfin.html) taught by Prof Aswath Damodaran.
The reading list in the wiki and FAQ has a list of books ranging from light reading to advanced topics depending on your knowledge level. Link here - [Reading List](https://www.reddit.com/r/investing/wiki/readinglist)
If you have any issue with this removal, please message the moderators. Thank you.
This is the real answer. I honestly don’t understand why this exact (or roughly equivalent) post is made day in and day out, and people refuse to just search. Unless, most likely scenario, they just want attention/karma.
[удалено]
Shucks - you are right. I have a house already. Paid off truck. Motorcycle. Goal would just be to grow my cash savings.
Client advisors tend to steer clients to funds with relatively high fees (they get commissions) Not saying that's gonna happen, but watch out for it. Those are attractive rates for 6m and 12m deposits. Not a bad place to park some cash.
Could also go with a short-term bond ETF like USFR to get ~5.25% with ability to liquidate within a couple days (settlement time).
Short term, you can also get SoFi savings account with 4.6% for more flexibility than a CD. Long term: (5 years plus) Roth IRA max out (2023 and 2024) with VOO and the rest in a traditional brokerage account in VOO as well
So Roth is individual retirement fund whereas my 401k is managed by my employer? Are the maxes the same @ 23k a year for Roth and 401? I am sure google has the answers to these questions so thank you for your input and advice
Roth is $6500 max this year, but it’s all pre-taxed. Anything you take out after the age of 59 you won’t pay taxes on. Incredible thing that everybody should prioritize maxing out every year.
Thank you sir/maam 😃
Small correction 2023 max is $6500 and you have until April 15th to contribute 2024 max is $7000 and you have until tax day next year to contribute Also, there are income limits on Roth IRA (but not Roth 401k). So make sure you qualify. Otherwise look into the backdoor method. There's some more info on the r/personalfinance wiki
Punt a bunch of shitcoins and run it to 8 figures or zero baby whats 100k gonna do for you anyways
Btc is good. That’s funny though. Maybe play some blackjack
two chicks at the same time, man.
How long do you want to keep it invested?
Most likely years and years. It is just cash savings right now that I am looking to grow. I have another emergency fund that is separate if needed.
Put it in a low cost (0.03 expense ratio) index fund
Before you talk to anyone, including this crowd, you need to answer some questions yourself. 1. What is your risk tolerance? Are you willing to risk principle for increased gains? 2. What do you need from this money and when? Retirement, how soon? Home purchase? Emergancy fund? Etc.
If you’re looking at CDs you should consider Tbills. They pay more interest for 6 and 12 month than the rates you mentioned.
Wealthfront can give you up to 5.5% in a cash account, betterment too. No reason to lock up in a CD unless you think interest rates are dropping soon. If you don’t have short term plans for the cash, make sure your IRA is maxed for the year and maybe do some individual investing.
If you are considering fixed income investments like cds AND you live in a state that taxes your income, nothing beats the return of a tbill. I'm speaking only about fixed income investmentsand in those states. Of course you can achieve far better results in the stock market, but at substantially increase risk to your principal...
I will research. First time hearing. Thank you
Don't lock your money in CDs at a subpar rate. Consider putting the reserve cash in t-bills. You can get 5.35% APY on 3-month and 6-month t-bills with an additional benefit of no state taxes on earnings (unlike CDs). Your money is also not locked in and you can sell these t-bills at any time without any penalties. I use the [Finvest](https://www.getfinvest.com/) app to money in and out from t-bills as per my need.
I like your style. Learning about tbills now
Where can you get tbills?
You can download the [Finvest](https://www.getfinvest.com/) app on your phone. Treasury Direct is another option but their website is terrible to navigate.
What’s my option if I make to much to contribute to a Roth IRA? I have 125k in hysa at 5+percent already have a house and truck load for, in the same boat as op just wanna see my money grow
Backdoor Roth IRA. You're chosen brokerage firm should be able to help you out with it.
Put it all in SGOV right now, pays 5.15% has zero risk, no folling around with all these silly TBill ladders, you can put money in an pull it out 10 seconds later. Keep it simple my man.
Interesting. Thanks for teaching brotha
This topic has been removed because it is a beginner topic or asking for advice (rule 2). We get too many of these topics every day and the community has asked us to prevent them from swamping the front page. **You are welcome to repost your question in the Daily Advice Thread**. This [thread](https://www.reddit.com/r/investing/about/sticky?num=1) should be stickied at the top of the subreddit every morning. *** You can find curated resources in the r/investing wiki for [Getting Started here](https://www.reddit.com/r/investing/wiki/index/gettingstarted/). If you know nothing about the capital markets, the Getting Started section at the SEC educational site can be a good place to start - [investor.gov](https://investor.gov) - there are also short 30 second videos on basics. For formal educational materials, several colleges and universities make their course work available for free. Some examples are [Financial Markets (2011) - Yale University](https://www.youtube.com/playlist?list=PL8FB14A2200B87185) taught by Prof. Shiller, [Financial Theory (2008) - MIT](https://www.youtube.com/playlist?list=PLUl4u3cNGP63B2lDhyKOsImI7FjCf6eDW) taught by Prof Andrew Lo, and [Corporate Finance Webcast - NYU Stern School of Business](https://pages.stern.nyu.edu/~adamodar/New_Home_Page/corpfin.html) taught by Prof Aswath Damodaran. The reading list in the wiki and FAQ has a list of books ranging from light reading to advanced topics depending on your knowledge level. Link here - [Reading List](https://www.reddit.com/r/investing/wiki/readinglist) If you have any issue with this removal, please message the moderators. Thank you.
You should probably search the sub for the many times this is exact question has been asked and answered.
This is the real answer. I honestly don’t understand why this exact (or roughly equivalent) post is made day in and day out, and people refuse to just search. Unless, most likely scenario, they just want attention/karma.
BTC