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

[winb83]

True. But on average, stock values should rise over time and also the dividends, AFAIK.

As a beginner it's a tough ask to weather the storm of stock values. If the price falls and a panic sale happens it could be potentially a worse loss than any gains made on dividends.

I would put that $20K in a high yield savings and gradually invest any new savings in dividend stocks.

Another idea. Put the $20K in SoFi and pull the interest it pays you investing that.

 

[Mike Nasty]

I know Dave Ramsey is for beginners, but he said something like "No one ever got rich with a high interest savings account"........yeah and no one went broke either Dave.

It depends what you want to get out of it. Maybe look at the advice given by Serious in post #11

 

[winb83]

I know Dave Ramsey is for beginners, but he said something like "No one ever got rich with a high interest savings account"........yeah and no one went broke either Dave.

It depends what you want to get out of it. Maybe look at the advice given by Serious in post #11

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.

 

[Mike Nasty]

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.

I know, the no credit card thing makes no sense to me.

 

[DeuceZ]

Makes sense if it's for emergency funds. If not then might as well invest in SPY or VOO.... or crypto i kid i kid

 

[David_TheMan]

i got over 20k in a high yield savings account and im earning money but it's so damn slow. is there a faster way to go about this

Slow is good and safe

 

[hashmander]

SoFi is 4.6% APY
UFB Direct is 5.25% APY
Popular Direct is 5.25% APY

Most recent (issue date 01/09/2024) TreasuryDirect auction for a 4 week bill is 5.4%

Upcoming Auctions — TreasuryDirect

www.treasurydirect.gov

 

[88m3]

I think that’s fine

 

[MoneyTron]

I think that’s fine.

I have a relatively large amount in a HYSA at AmEx thinking I needed the liquidity to aggressively pay down my student loans. I don’t think I’m going with that strategy because I want to spend it on other shyt but at least its earning money.

If you want more risk(and potentially better returns), I’d look at the robo advisors at Wealthfront, Schwab, or Betterment.

Can’t go wrong with any of them. They are pretty much set and forget and offer more options than a single ETF.

 

[Hoshi_Toshi]

Depends on how fast you want to grow it. I’ve got the same amount in a credit union account but that’s because I want it liquid in case I decide to pay off student loans.

 

[MJ Truth]

Depends. Is this emergency savings? Is it savings for something you plan to buy soon? Or is it extra money that you don’t necessarily need to touch in the near future?

 

[Batsute]

i got over 20k in a high yield savings account and im earning money but it's so damn slow. is there a faster way to go about this

Depending on how much you earn reach out to a wealth planner, make sure they are a fiduciary. Im like you I got 30k in Apple Pay at 4.5% and I told this planner im trying to leave this country in 10 years.

They’re gonna work with me to build a portfolio they manage it 100% or do a consulting scenario where I give the okay.

 

[SupaVillain]

Depending on how much you earn reach out to a wealth planner, make sure they are a fiduciary. Im like you I got 30k in Apple Pay at 4.5% and I told this planner im trying to leave this country in 10 years.

They’re gonna work with me to build a portfolio they manage it 100% or do a consulting scenario where I give the okay.

plug me g

 

[Batsute]

plug me g

Check ya DMs.

 

[ThaBronxBully]

I know Dave Ramsey is for beginners, but he said something like "No one ever got rich with a high interest savings account"........yeah and no one went broke either Dave.

It depends what you want to get out of it. Maybe look at the advice given by Serious in post #11

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