Hello! I’m 32 and newly single and realize I don’t actually know what to do with money besides basic savings. I just opened the individual account so I’m leaning to just slowly move some funds there over the next year? Please lmk if that’s an objectively bad idea or if I’m totally clueless to another option that ought to be considered!
I have:
Retirement accts: $250k
HYSA: $60k
HSA: $10k
Individual Brokerage Account: $8k
Student loans (low interest): $10k
I know that’s a lot in my high yield savings, especially since im not saving for a house/car/wedding/etc, but I’m just not sure what to do with that money that won’t lock it away for a long time if I do end up wanting to make a big purchase in the next couple of years.
Where to save emergency fund overflow?
byu/North_Speaker_8930 inpersonalfinance
Posted by North_Speaker_8930
4 Comments
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics.
that’s nothing lol. I’m way over the recommendation ($150k). it covers future car, future home down payment, and emergency fund.
there’s not great options to park lots of money you want to use within a few years that won’t put it at risk. but if you want my general thoughts, i’d probably take out $10k from the HYSA and just pay off the student loans and be done with those. there’s no real upside to dragging those out when you have the cash on hand.
Well … keep 6–12 months in the HYSA for liquidity, then gradually move the excess into a taxable brokerage and invest based on your timeline. If there’s a decent chance you’ll need it in 1–3 years, keeping it in HYSA or short-term T-bills / a money market fund can make more sense than equities.
$60k may be a reasonable emergency fund if your local cost of living is high. Money saved for emergencies should be in a HYSA, with some of it possibly in short-term CDs or Treasury bills if the rates are good.
Money that is not for emergencies or known large expenses in the next five years should be invested. Don’t sit on cash without a purpose.