is having 100k in your savings account a bad idea?
- Thread starter the cool
- Start date
I’m 36
Kilgore Trout
Banned
This has absolutely nothing to do with the thread, stop pocket watching random screen names on the internet.
As for the topic it depends on what you are doing with the money and how long you intend to keep it.
If you’re thinking about a mutual fund or something of the like for quick gains just remember the tax penalties you’ll have to pay for taking the money out.
Depending on your expenses and plans I’d take half and put it somewhere and don’t touch it for a while.
Thanks
That's too much. Between Roth IRAs, 401ks, stocks, mutual funds and HSAs you should be adding to all of those before having 100k in a savings account that barely makes you any interest.
BornStar
Marathon Continues
It's a random screen name as you said. Stop telling random people how to act like your their father. I wasn't pocket watching i was asking for motivation/ my own reasons not to shyt on someone.. Get your weak ass tf outta here.
Its not bad if you plan on putting it in a down payment for a house, otherwise yea. Its just not gaining the value it should be getting.
It would be better if it was in a vanguard, index, mutual fund.
But if I had 100k in my account, I would buy a property.
It would be better if it was in a vanguard, index, mutual fund.
But if I had 100k in my account, I would buy a property.
i have enough money in my savings to live for 6 months (could be stretched to 8 if made some cuts) without any income or liquidating assets.
Perfectson
Banned
Depends in your risk tolerance
At 36 _ a relevant question - you should be able to take on additional risk.
1. How much is your savings account getting you in apy?
2. Is that 100k also for emergencies or for retirement ? I would take 6 months of living expenses and keep it in the a high yield savings or money market or CD
Take the rest and invest it
DM me for some specific suggestions and opinions . I would also see if your bank offers free Financial advice
At 36 _ a relevant question - you should be able to take on additional risk.
1. How much is your savings account getting you in apy?
2. Is that 100k also for emergencies or for retirement ? I would take 6 months of living expenses and keep it in the a high yield savings or money market or CD
Take the rest and invest it
DM me for some specific suggestions and opinions . I would also see if your bank offers free Financial advice
Secure Da Bag
Veteran
100k in a savings account is a bad idea only because your money loses value due to inflation. IE. inflation rate > savings rate. Diversifying your portfolio (ex: stocks, bonds, IRAs, ETF, mutual funds, index funds) is the better bet.
It really depends on your perspective and your life situation. Having $100,000 in your savings account can't really be considered bad; it's better than having $50,000 in your savings account or $100 in your account, or a negative balance.
So it's really not that it's bad, it's just that there are better places to put your money. You're better off investing it into something, but of course then you're risking it.As far as the IRA goes, you're only able to put in $5500 a year anyway. And you can technically take money out of your IRA whenever you want but there's a penalty if you've already invested it; if you put it in the IRA but have not invested that money you can withdraw it without penalty, but at that point it is essentially a savings account.
The best investment you can EVER make is an investment in increasing your knowledge base and your information. Then you'll better know how to utilize that $100,000. Just also remember that if you're asking someone what to do with your money, there's a 98% chance they're just going to find a way for you to give it to them (indirectly of course).
You can't just put 100k in an IRA there are certain limitations like income level and it's either 5500 or 6000 of earned income you can put in yearly
Pm me I'm a CFP®
There is a lot of information about you that we would have to know to see what would be the best thing to do for your situation, like life goals time horizons income situation and what you have in other investments, your family situation etc...
Pm me I'm a CFP®
There is a lot of information about you that we would have to know to see what would be the best thing to do for your situation, like life goals time horizons income situation and what you have in other investments, your family situation etc...