Advice please...

[LEGENDARY70]

Hello all.

I would love some advice on opening a HYSA with $15k to 25k either or. I am new to this and would love any advice you have for me. I am 52 yrs old.

I would also like the ability to take out money if needed. I bank with BOA at the moment. I also have a chk with USAA and Cap one.

Best.

[Jluke]

Simple action: open Performance Savings at CapOne for 4.25% interest.

[disneysteve]

Or open a Vanguard account and keep the money in VMFXX, their settlement fund, which is paying 5.23%.

What is the purpose of this money? Emergency fund or something else?

[LEGENDARY70]

My wife and i want some retirement money. We are still maybe 15 yrs away from it. but yes it is for us to have a decent retirement.

[LEGENDARY70]

I currently have the TRS. I am a teacher. Is 4.25 decent for the amount of money I am depositing? will I have access to it? I went to the vanguard site and is a bit intimidating lol. What else would yall recommend? I heard sofi offers 5.2%. Thanks in advance.

[disneysteve]

Money for retirement 15 years away doesn’t belong in a HYSA. That’s money that should be invested. Plus if it’s for retirement why are you concerned with easy access to it?

[disneysteve]

Keep in mind that interest rates are starting to head down. VMFXX has already dropped a touch from 5.27 to 5.23%. Once the Fed drops the rate later this month savings rates are likely to fall more.

[LEGENDARY70]

Thank you. I would like access to it just in case. we never know. i heard good investments would be Microsoft, nvidia, apple ideas? thx

[Jluke]

Thank you. I would like access to it just in case. we never know. i heard good investments would be Microsoft, nvidia, apple ideas? thx

That’s the complete opposite of easily accessible.

however investing some of the money would be a good choice.

I’d recommend a total us fund like VTI or ITOT.

if you want to get into tech maybe VGT or FTEC.

[disneysteve]

Thank you. I would like access to it just in case. we never know. i heard good investments would be Microsoft, nvidia, apple ideas? thx

No, no, and no.

If you want to get more into investment recommendations, we need more info. You said you're 52. Married? Kids? Do you have any debt? What does the rest of your portfolio look like? What % of income are you currently investing for retirement? Do you have a fully funded emergency fund? At what age do you hope to retire?

As I said, if this 15-25K is for retirement, then you don't want it somewhere with easy access to avoid the temptation to dip into it for other reasons. For investing, I would not do individual stocks. I'd probably recommend a total stock market index fund like VTI, but that would depend on what the rest of your portfolio already holds. What's your asset allocation?

[LEGENDARY70]

Married. 2 left at home 17 and 16. Mostly student loans. approx 85000. TRS takes 450ish a month towards retirement and they match it. I have been teaching for 18 years. No ER fund. hoping to retire around 65. No asset allocation.

[disneysteve]

Married. 2 left at home 17 and 16. Mostly student loans. approx 85000. TRS takes 450ish a month towards retirement and they match it. I have been teaching for 18 years. No ER fund. hoping to retire around 65. No asset allocation.

You have 85K in student loan debt at 52 years old? Is there a mortgage? Any other debt?

I'm not familiar with the teacher retirement system. You're contributing $450/month. How is that invested? And what % of your gross income does that represent?

No emergency fund? By that, we mean liquid savings set aside for the unexpected like a car repair, home repair, medical bill, etc. Do you have any savings outside of your retirement plan or is this 15-25K you're asking about everything you've got?

Asset allocation refers to how your money is distributed between stocks, bonds, cash, and any other investments like rental properties and such. Everyone has an asset allocation even if it's 100% cash.

[bjl584]

I have a Fidelity account yielding 4.94%.