hi all currently i have around 125k in a HYSA paying 4.00% APY and have around 107k in the stock market, most including my ROTH IRA and 401k. Already maxed out last year and this years ROTH IRA, and currently investing 300$ a week into a 60/40 split of VOO and QQQM. With how volatile this stock market is right now i’m hesitant to pull money out of my HYSA and put more into the stock market. Any recommendations ?
Posted by hovc
3 Comments
Every time I see these “25M cash” posts I think the OP has $25,000,000 cash
Historically sitting on cash because of vibes is not the right choice. What even makes you say the market is volatile right now? It’s mostly been trading sideways. Keep an emergency fund liquid and put the rest in index funds. Being only 25 years old short term price action isn’t of any concern to you.
Honestly, your positioning isn’t irrational it just reflects caution in a volatile environment
The real question isn’t whether the market is volatile. It’s what role that $125k in HYSA is meant to play
If it’s emergency liquidity or near-term spending, 4% risk-free isn’t a bad place to park it. Stability has value
If it’s long-term capital, then sitting fully in cash because of volatility becomes a timing decision and timing based on discomfort tends to be expensive over decades
You’re already consistently investing weekly, which is a strong behavioral advantage. The bigger decision is whether you want that HYSA money to remain a stability anchor, or gradually transition part of it into long-term compounding
One approach I’ve seen work well is tiering:
Core emergency reserve (untouched)
Strategic cash (deploy gradually over time)
Long-term equity allocation (already in motion)
That way you’re not making an all-or-nothing call in a volatile market