High Yield Saving vs all in stock
I want to park 40k for long term investment. It’s little but nonetheless... I can open Marcus (by Goldman and seems to have better service and rating than Ally) vs buying more stocks (MSFT vs GOGL) vs more in Vanguard. What would you do? I was thinking 10k as emergency fund in saving account and the rest in the stock market. I already own Vanguard VTI and VGT (5k each).
Sounds reasonable. Depending on your monthly expenses, if you can keep 4-6 months emergency fund. Marcus, Ally, and CIT allows you to access your funds pretty quickly.
Vanguard. Cash gets parked in vmfxx which currently yields 2.38%. Or buy broad based etfs or mfs such as vti or vstax
I often think about if switching to VSTAX is worth it - given how EFT is advertised as more “tax efficient”.
Worth it compared to what? You should be sitting in VTSAX for long term investments. Don’t buy individual stocks.
You should have separate rainy day fund and long-term investment. Rainy day in semi-liquid no risk funds (savings, CD, treasury bonds). Long-term investments should be diversified based on your horizon and risk tolerance. Decide on an asset allocation (stocks/bonds/cash) and stick to it.
Thanks makes sense.
This. Not all CD's are created equal. For a rainy-day fund, I prefer to select one with pre-maturity withdrawal penalties that align with an "oh shit I need that money now" mindset, forfeiting some recent interest on the principal withdrawn but no other fees or delays.
risk and return: stocks > high yield > cash so if you want to be semi-aggressive, invest primarily in equities ETF, with the rest in bonds and cash
Yeah I will do more research, thanks!