I had nothing specific in mind. Maybe the problem is nothing exists, I just assumed like a rule 34 for investment vehicles (If there’s a risk:return profile you’d like to target on the curve of reasonableness there’s an investment option that offers it). Your quoted post may have been what prompted me to consider finding more tax advantaged places to save money. I’m at a level of savings where my future earnings is still worth way more but I have enough that the tax bill on HYSA interest feels like a lot, so finding something both more volatile and with tax advantages fit what I needed, and may have been easier to find.
I’ll echo what others have said about liquidity. I can’t imagine an emergency that requires needing money in under a week that I can’t put on a credit card. I’ve never had an emergent need for more than $10k so I’m fairly certain I can accept higher volatility on my full savings and either 1) I’ll be ahead if/when I need to liquidate or 2) I won’t be so far behind that it will be a catastrophic loss.
Anyways the better way to put it is what % of one’s non retirement account money should be in the market vs in a hysa right now? I’m at like 25%/75% atm.
75% HYSA? That feels like way too much for a non-old. I also think this speaks back to stuff @ParlaySlow talked about awhile ago about how high interest rates doesn’t necessarily mean you’d expect the difference in return of treasuries vs. stocks to change (though I’m not 100% sure I understood at the time).
Hmm OK but I look at it a bit as hedging with the hysa - wife and I have good sized 401ks and iras and they’re all in the “maximum growth” buckets so IDK.
Regardless if Trump wins I think being in the market is bad idea so probably won’t make a move until then.
You’re overthinking it and essentially trying to time the market. When do you need the money? Having that much in savings is absolutely insane unless you’re going to need it in the short term.
Of course, the thing about timing the market is that it’s random and sometimes it will work out due to dumb luck. Just like you can open 72o UTG and still end up dragging the pot.
One of my buddies was largely in cash for years just waiting for a spot. He shoved at the COVID trough. So, that worked, but as a general strategy it’s suboptimal.
Then being in a high yield savings account in USD is way worse than being in American stocks. If you think that’s going to happen, you’d probably want a mix of other currencies, gold, Bitcoin, commodities, US stocks and foreign stocks (at a higher weight than usual). You might also want “alternate investments.” Like a Rolex or fine art would be a better store of value than a HYSA in that scenario.
American companies (think of like Apple or Coca Cola) get a lot of revenue in foreign markets. For that reason alone, you have a lot less dollar exposure owning US traded stocks than you do putting money in a US bank account
Maybe nothing happens to the USD idk. But how does the s&p 500 react to the US leaving nato? Ukraine losing and zelensky being publicly executed? Whatever happens to our so called democracy? Does it go up a lot?
I think these the wrong questions to ask when deciding how much to keep cash vs stonks.
Think it’s more relevant to think about a personal crisis hitting your family like job losses/ serious injury / illness / suddenly feeling financially responsible for a disabled relative / etc and then deciding if there some amount of cash you want to be absolutely sure you have to face that regardless of market conditions.
I guess another scenario is if your assets are substantial enough that you feeling close to not caring if it grows much and it’s more important to you to avoid market risk than to maximize EV?
This is where I am at too. The only money I have “invested in the market” is in my retirement accounts. Everything else is in a HYSA. 5 percent is good enough for me.
