where to park savings?
Let's say that I've managed to save $110k, what should I do to maximize my money? I've already scoured /r/personalfinance, but I never really see *concrete examples* of what to do. For the past year, it's just been getting eaten up by inflation I'm already contributing to my 401k, and I want to buy a house in less than 5 years, so I don't think an IRA is useful in this case. I've been looking into chase You Invest Portfolios. Does anyone have any experience with it? Their fee is 0.35%, which is pretty average with regards to fidelity and vanguard.
If you are trying to buy a house and your horizon is less than 5 years, maybe a savings account or some CD will serve you better.
Why is this?
@PdAX50 - Stocks and ETFs May go down over a 5 year time horizon. High yield savings account at > 2% will definitely be up 10+%. Depends on how much risk you want to take. Stocks *could* be up more.
Are you prioritizing the house or retirement? Your post is not clear on that. They are very different goals. For retirement: max out 401k then do maximum Roth conversion you can... every year. Also make sure 401k is not screwing you with high fees when you could just go w self managed index and bond funds House: money market or interest paying savings. You need to have money there to use when it’s time to make your move.
OP, @dbky43 is spot on if you want to invest in the stock market, which I’d generally recommend as well. After a 10+ year bull market, I’ve recently moved most of my funds to a high yield savings account. There are several around 2% return. Just depends on your risk appetite!
With fed rate cuts, this will drop too
Generally the Reddit and misc other finance boards will recommend to park funds in a total market fund like VTI. It's the easiest most convenient way to earn long term return as the rationale is that stock market goes up forever in long term.
Why don't you buy a house right now, 100k is sifficient down payment for half million house
There aren't any half million dollar homes in the bay area. OP didn't specify location so 🤷♂️
Then buy in states that are not so inflated, rent it for years and then sell it for double or triple
Half million is probably down payment for a house in Bay area
Open a Marcus Savings account, and place all the money there. Seriously. With a 5 year time horizon, you don’t want to risk a sudden drop in the stock market eating 20% or more of that money right when you need it.
Buy far OOM puts. If you hit the jackpot retire. If not then rinse and repeat 😉
I’m doing this with far OOM calls on $SNAP Please keep working hard 😓 #EvanRules
Lol. Don’t keep your hopes too high 😬
If you’re planning to buy a house, keep most of it in cash, but consider keeping some in long term treasury bond ETFs and/or real estate ETFs.
Buy vanguard ETF, VTI, VOO directly on the Vanguard site. No load, no transaction fees, only 0.04% mgmt fee per year.
what are the fidelity equivalent funds?
I see. How do you/ would you, deal with rebalancing? I use Wealthfront and their asset allocation is not that fancy tbh and I’m dreading paying those fees now. Tax lost harvesting is not really cutting it for me and don’t fell it’s worth .0.25 mgmt fees