32, no debt. Yes, I max out my IRA every year and i have an emergency fund of 12 months worth of rent in cash.
I am a late bloomer of financial literacy — I currently have only $4k invested in my brokerage account purchasing VOO and SCHG. Brokerage currently has $250 biweekly contributions.
My rollover IRA follows bogleheads method (FTIHX/FXAIX/FXNAX) and I max it out every new year.
Before said financial literacy, I stupidly had 50k just sitting in my chase savings account doing nothing for a few years. I finally had moved it to a HYSA when my credit union offered 5% two years ago.
I now have 60K after some contributions and interest accrual.
I have no immediate, large financial goals. I own my car and my rent is $1.5k a month. I would like to own a house within the next decade, but Im in no real rush.
What would you do?
60K in HYSA — move to brokerage or keep in there?
byu/CheesecakeOdd3075 inpersonalfinance
Posted by CheesecakeOdd3075
3 Comments
Follow the prime directive in the wiki.
In this job market keep minimum 12 months’ expenses liquid, maybe even 18 depending on your field. From there, 1) contribute up to the employer match limit if you are offered a 401k, 2) max out a roth IRA, then 3) any additional money can be used in the 401k.
How much do you earn? Is the $60k include your 12 mo emergency fund, or on top of that?
A concern I have currently is really high markets for everything. Your DCA into the market is good but I don’t know that I’d put a huge slug of funds into a leaky market right now. I might DCA more aggressively if/when things start to correct. Not catching falling knife per se, just remaining disciplined while re-allocating resources into a better value situation.
I’d move it to a brokerage. Any of the well known ETFs. You’re setup well with the additional emergency fund.