Best way to save or invest 20k savings
put at least however much you immediately need in a high yield savings account like discover or amex. but if it's truly an emergency fund, then this should be all of the 20k put the rest in VOO or VTI or another index fund
What are your thoughts on VSTAX
I think it's actually exactly the same as VTI. But as others have mentioned, you want your core emergency fund risk free, because a market crash could = no job and stocks lose 50% and now you're SOL if that was where most of your money was
Put in savings account
Wealthfront has a 2.29% interest cash account with no fees
Bull market seems to be coming back in crypto, worth a look.
🤦♂️
Someone missed out on the last one and will probably do it again.. 🤦
It's an emergency fund you want 0 risk and guaranteed return, I would only do high yield saving for those money
Have a line of credit available for 6months of expenses. Put half of the equivalent cash amount into a diversified etf and the rest into a savings account.
Please give me an example of a diversified ETF
If its an emergency fund. You need to be able to take it when you need it. I would put it in a secure place like Marcus Savings accounts from Goldman & Sachs. It will give you 2.25% of Annual Percentage Yield. You could put also $10K in it and $10K on a 12 months Certificate of Deposit with Marcus with an APY of 2.70%. Zero risk it’s what you want. You need 6 months of salary after-tax in an emergency fund. $20K means that you make $3300 after tax, per month.
lol, 6-months of after tax salary is borderline impossible if you have student loans, and/or live in the Bay Area or NYC. If you make $10k/mo after taxes, you’d be looking at $60k. Even if you could save $2500/mo (which is on the high end. That’s 25% of your after tax income) you’re looking at 2 years of saving to get there. That’s assuming you aren’t going on vacations or making any big purchases for 2 years. Realistically you can maybe do $2k a month, you’re looking at 2.5 years of solid saving to build that up, and that’s assuming you’re not putting anything into 401k, other investments, or paying down those student loans. 3 months is a more manageable, realistic figure for many of us. Even then, that’s tough if you still have student loans in the Bay Area or NYC.
Almost all the advisors are stating 3 to 6 months after tax, after savings. Basically 3 to 6 months for core expenses like rent/food/transportation. See one of the source: https://investor.vanguard.com/emergency-fund/ But I do agree. As a student I had almost nothing.