Where ya'll putting your savings?

[DarrynCobretti]

You front-loaded your 401k and maxed it out for the year already? I've never maxed out my 401k this early in the year. Of course in some circumstances it's not necessarily desirable to front-load your contributions - depending on your company's plan provisions you could miss out on the free cash match that's on the table each pay period because obviously you're not making contributions later in the year. Basically due to many plan provisions, you will receive less match front-loading than if you spread your contributions out over the year. Unless your plan has makeup contribution(aka true-up match) that will basically make sure you didn't leave free money on the table and erase the disadvantage that comes with front-loading your 401k in the low amount of pay periods you used.

Anyway OP, to answer your question like many have already said a Roth IRA is the way to go. And if you don't want to put all or the majority in it and the goal is still to beat the actual rate of inflation(and what it's forecasted to be in the future), obviously even the highest-yielding saving accounts on the market can't and the highest yielding CD ladders that can (and barely at that) typically have early withdrawal penalties- so to really get the best return and protect the purchasing power of your money go look around at ETFs or mutual funds.(Personally I prefer ETFs and contribute to mine periodically)

 

[acri1]

Yeah I got about 40k sitting in my credit union savings account doing nothing.

 

[NeilCartwright]

A Roth IRA like others have mentioned

I’d have 6 months of liquid cash in savings

Personally I’m big on stocks, so that’s what I’d advocate for

And they say inflation is 3% a year so you mine as well put some of it in something that’ll make you some money. Idk if you need that much liquid cash sitting there. Unless you can get in with a checking account with a higher interest rate than your current savings account

 

[phcitywarrior]

My father would keep about 3 months expenses in a savings account and then another 6 months expenses in cold hard cash locked in a safe.

Cash is king

 

[Jsully]

Keep 18 months of savings in a traditional savings account and build a bond ladder using TIPs with the rest. A ladder gives you multiple maturity dates so in case you need to utilize the cash you can and if not you reinvest so it matures at the end of the ladder. That way you grow it and keep it mostly liquid just in case. Thank me later

Edit: I keep 18 months worth of expenses cause just in case I get fired or laid off, I can just go travel or bullshyt or just catch up on living life for like a month since I'm not beholden to the daily grind of a job. This allows you to mentally reset without the stress of quickly trying to find new employment

 

[phcitywarrior]

Keep 18 months of savings in a traditional savings account and build a bond ladder using TIPs with the rest. A ladder gives you multiple maturity dates so in case you need to utilize the cash you can and if not you reinvest so it matures at the end of the ladder. That way you grow it and keep it mostly liquid just in case. Thank me later

Edit: I keep 18 months worth of expenses cause just in case I get fired or laid off, I can just go travel or bullshyt or just catch up on living life for like a month since I'm not beholden to the daily grind of a job. This allows you to mentally reset without the stress of quickly trying to find new employment

I never thought of it this way. You get fired then you travel somewhere to gather some perspective. Quite interesting actually.

 

[Macallik86]

These are the steps that I always think about:

 

[Yinny]

Direct banks and roth iras, I have no debt

 

[OC's finest]

These are the steps that I always think about:

this breaks it down about as perfectly as can put it

i was gon type something like this out, but this is perfect. props, and all the coli bruhs should def use this as reference.

pz

 

[Ohnoits]

401k
Index funds
long term savings account (emergencies etc)

 

[Originalman]

Got my shyt in a crown royal bag under my mattress.

 

[Originalman]

Keep about 3-6 months of emergency fund expenses in your account, preferably a credit union account and/or an online account like ally.

Do you qualify for a Roth IRA? If you do, max that too (5500 a year under 50). Basically a super savings account where you still have access to contributions w/no penalty (since it's funded after tax by you, don't touch the earnings though) but you can put it on good funds and ETFs so it's making you money.

IRAs the shyt.....I even got my daughter who is only 4 a roth account for minors...