Is putting $20,000 in savings at 4.10 apy a good idea?

[winb83]

What He Means Is That A High Yield Savings Account Isn’t An Investment Vehicle

It’s A Place To Store Your Savings With A Perk Being Your Money Doesn't Lose Value The Way It Would Sitting In A Regular Savings Account

Again, It's NOT An Investment Vehicle, Its Pretty Much Helping Keep Your Future Money AT or Above Inflation

If Anyone Puts Money In A High Yield Savings Account Thinking It's Gonna Act Like An Index Fund Or A Stock Then It's Clear They Don't Even Know Investing 101

And Thats Ok, We're All Here To Learn

But Guys, DO NOT Invest Your Savings

Savings Money And Investing Money Are 2 Different Things

You Wanna Put Savings Where It's Guaranteed Growth And Easy To Access

I don't invest all my savings but I save and invest money every week or two. It's not necessarily a retirement account because I have those too. A Roth IRA, a 401K and just opened a Roth 401K.

I have a little bit of money sitting in multiple different bank accounts easily accessible incase I need short term cash so I don't have to use credit or liquidate assets. I also have a larger pool of money I may use to buy a home one day. That I have an individual investing accounts with multiple brokers that are not a retirement accounts I use to both save and grow money long term. I plan to keep them indefinity and just let it continue to grow. I put in about 60% and the other 40% of it is 5 years worth of growth.

At the moment my online savings account is paying more percentage of money per month than some of my dividend stocks make. It won't last forever but many dividend stocks aren't doing 4+ percent per month.

 

[MJ Truth]

You kinda gotta pick and choose with Dave Ramsey. He got rich selling people techniques to get rich that didn’t make him rich. He didn’t work a 9-5 and save over a lifetime barely becoming a millionaire off investments in retirement age.

His story and product began to generate so much income it made him rich on a completely different time table.

Dave’s advice isn’t really about getting you rich though. More so following his advice is the best way for the AVERAGE person to even be in position to get rich, and also will prevent you from being extremely broke.

 

[the cac mamba]

i don't think you should really be "investing", i. e. risking your liquid holdings losing value, until you've got a down payment for a house saved up. 40, 50k. so yeah, throwing it in a 4 percent account is a good move

 

[winb83]

Dave’s advice isn’t really about getting you rich though. More so following his advice is the best way for the AVERAGE person to even be in position to get rich, and also will prevent you from being extremely broke.

Not the average person. Dave Ramsey is training wheels for financially incompetent people. Once you learn a little about money and get out of debt you bush him. You don’t have to run from debt and get a 15 year mortgage or buy a house cash. You can finance a car within reason. You probably aren’t getting 12% returns on his fictional growth stock mutual funds he won’t name.

Ramsey is for people who bring home $1500 a month after taxes and have a $600 car payment not counting insurance.

 

[MJ Truth]

Not the average person. Dave Ramsey is training wheels for financially incompetent people. Once you learn a little about money and get out of debt you bush him. You don’t have to run from debt and get a 15 year mortgage or buy a house cash. You can finance a car within reason. You probably aren’t getting 12% returns on his fictional growth stock mutual funds he won’t name.

Ramsey is for people who bring home $1500 a month after taxes and have a $600 car payment not counting insurance.

I agree with what you’re saying but I’m not sure that isn’t the average American.

 

[winb83]

I agree with what you’re saying but I’m not sure that isn’t the average American.

I don't see the average American as financially irresponsible. Sure lots of people live at the edge of what they can afford but Ramsey is more for the irresponsible up to your eyeballs in credit card debt live beyond your means crowd.

I won't lie I used some of his teachings to get my debt under control. I do still finance cars but I put about 70% down and I do have the cash to pay off the balance if necessary. Use credit cards for all purchases I can and get usually 5% cash back on everything and at the minimum 3%.

 

[MJ Truth]

I don't see the average American as financially irresponsible. Sure lots of people live at the edge of what they can afford but Ramsey is more for the irresponsible up to your eyeballs in credit card debt live beyond your means crowd.

I won't lie I used some of his teachings to get my debt under control. I do still finance cars but I put about 70% down and I do have the cash to pay off the balance if necessary. Use credit cards for all purchases I can and get usually 5% cash back on everything and at the minimum 3%.

I definitely see the average American and America as a whole as financially irresponsible. At least based on the data, and even personal interractions. The average American lives beyond his means.

 

[UncleTomFord15]

VOO and BND