What is an average amount someone my age should have in their bank’s online savings account?
50+ male with a decent amount in my 401K. No debt. Rent an apartment. Have been saving for a home forever but that won’t happen in this market. Bills include phone, internet, and electric.
Have about $150,000 in savings in an online bank. In a job that is prime for layoffs but so far I’ve been able to keep my job. With the stock market doing so well, wondering if I should put some of my savings account money in the S&P 500. If I do that, can I pull out the money if I lose my job or if there is an emergency?
Thanks for your thoughts.
Bank Savings Account
byu/Acceptable-Buy1302 inpersonalfinance
Posted by Acceptable-Buy1302
6 Comments
3-6 months of expenses.
[https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/)
Your cash savings should really only be just in case you are fired, and it takes you 6 months to find a job, you won’t have to go into debt
People also keep extra savings for large purchases that are coming soon
Now if it took longer, the best short term options for cash are 0% interest balance transfer offers on your credit cards, and 401k loans, ideally we avoid these
How much are you saving for a home? $150k should be enough for a down payment and associated costs while leaving you with a decent emergency fund, depending on what you’re trying to buy.
I suggest you start by consuming the [excellent information](https://www.reddit.com/r/personalfinance/wiki/commontopics/) provided in this sub. Everyone has a different life situation, expenses, savings goals, etc, so knowing an “average” savings amount really serves no purpose.
>Bills include phone, internet, and electric.
Do you eat? Do you have a vehicle? Do you have insurance of any sort? Do you ever go to the doctor or dentist? You must have more bills that just what you mentioned.
>With the stock market doing so well, wondering if I should put some of my savings account money in the S&P 500. If I do that, can I pull out the money if I lose my job or if there is an emergency?
Money you might need in the next 1-5 years should not be put at risk in the stock market. Sure, it might be fine, but it also might not. With market at an all time high, it’s ripe for a pullback. Look for a good HYSA paying ~4%, or open a brokerage account at Fidelity, Schwab, or Vanguard and put your savings into a good money market account or an ETF like SGOV.
You can comfortably invest a portion of your $150K that exceeds a fully funded emergency fund into the S&P 500, while keeping a safe, liquid cushion in your savings account for job loss or emergencies.
Should have had money in the market for decades now. Guaranteed you would have more than$150K…