HYSA
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If you contribute the max to your Roth and 403b, you'll have $180k in 5 years, assuming 8% returns (this doesn't count what you already have in these accounts, with compound interest it will be much more). And you'll get the tax benefit. I think this is the way to go. I think the point of the original comment is that you don't need to touch the inheritance to do this, but it is there if you need the help. As for the inheritance, I'd pay off any high interest debts and put 6 months of emergency funds in an HYSA, and then invest as much as you can.

If you contribute the max to your Roth and 403b, you'll have $180k in 5 years, assuming 8% returns (this doesn't count what you already have in these accounts, with compound interest it will be much more). And you'll get the tax benefit. I think this is the way to go. I think the point of the original comment is that you don't need to touch the inheritance to do this, but it is there if you need the help. As for the inheritance, I'd pay off any high interest debts and put 6 months of emergency funds in an HYSA, and then invest as much as you can.

Hey everyone,
I’m 22, debt-free, with low monthly expenses and a job paying $26/hr. Right now, I’ve got:
• $32K in savings (HYSA ~4%)
• $20K already invested (spread across brokerage, Roth IRA, and some crypto)
I’m considering moving $15K from my HYSA into my brokerage account in hopes of beating the 4% yield over time. My goal is to let it grow, then roll ~$7K from brokerage into my Roth IRA during the next contribution season, even if I have to pay some capital gains tax. Does this seem reasonable?
I also plan to invest $26/day on every working day into my brokerage as a long-term habit. To set a baseline and allow me to contribute more in the future if need be.
An additional thought on building up my brokerage is if in the far future I do want to try to retire before being allowed to pull from my Roth — I would be able to pull from the brokerage instead
I’m keeping a solid emergency fund on the side. Just want to make sure I’m being smart with this idle cash. Would love your thoughts or suggestions!

Yeah I agree. The issue is going to get dicier when they start punishing savers again. And that is coming soon, certainly by year end. Once the MMF or SGOV or any other HYSA that are basing rates on 1-3 month T bills go below 3% (in effect paying negative interest) then we will be scrambling for yield. At 4-4.5% we are already earning negative interest against the real inflation rate. But at least being above CPI it’s tolerable. Once it goes below again, it’ll just blow the bubble bigger. If it hasn’t already popped.

And SCHD grows with the market. HYSA only has the rate, but the principle never grows.

it depends. Typically its "monthly expenses x months of no income"
what sort of emergency are you planning for?

loss of job? in your industry how much time does it take to find a job. (ie kung in-demand role \~3-6 months)
Are you paying for rent/mortgage on your car and home?
How much are your utility bills, tuition, groceries, etc?
Debts?
Finally, health. This is the major emergency most of us face.
If you do not have an HMO or Philhealth etc, depending on the emergency 1m may not be even enough.
If you have an existing condition, it may be prudent to allocate a little more.
If you are young, healthy, and employed with an HMO (NEED ALL THREE) then this isnt as big of a risk. (unless maraming dependents, but thats another issue)
Personally, now i maintain a 2 month expense liquid cash, and 10 months on HYSA/MMF. This may change over time, but at least for this year, ito ang allocation ko.
I have enough credit cards for Health emergencies. which would give +30 days to plan on how to liquidate investments properly to pay for a very large hospital bill.
One of the important reasons why you have an emergency fund, is to ensure that you do not draw from your long term investments so they can keep growing. or get into debt (negative investment)
Also putting too much money on EF, means that money isn't invested and drags out your FIRE timeline.
1m at 7% interest (Mp2) is +70k/year. think about that.

I will say there are buffoons on this board that can’t see past a single fund. Many people get more growth, have very safe holdings and have dividends (not distributions) by holding stocks of great companies long-term. I have a few single stocks that have outperformed these funds on their own.
People will gripe “diversification”. If you do much business and economic reading you’ll do better.
Those that are ok with average and want to do little to understand their investments buy into funds like SCHD, which is a great fund, for most people.
I’d rather see people investing in that than a HYSA.
But if you are a hardened dividend fund investor, don’t put others down. Most of you think there’s only one investment, the one you’re in.
Let people decide in what their goals are, don’t provide them for them.

IMO, flexibility in your spend is critical. The 4% rule (4% the first year, adjusting for inflation every year after that) was the percentage that gave success in like 90%+ of starting years over the study period. That period was 1926 to 1976, so it included a few major financial events (i.e. Great Depression and the 70's inflationary period... but not the dot com crash plus the 2008 financial crisis).
In most of the cases, the final portfolio value was WAY higher than the starting value. So, if you want to use a fixed rule like the 4% rule, it needs to be conservative to account for the really bad times, but then you end up spending way less than you could have for normal or "good" times.
I plan to calculate my annual withdrawals using something like the RMD tables or a tool like Boldin - and calculate the withdrawal amount such that I have a 90+% chance of 30 year success (and then maybe 20 year success once I'm 10 or 15 years into retirement) each year when I decide my withdrawal amount. That might mean that in some years when I'm traveling I'm flying in business class and staying at 5 star hotels, and other years I'm doing a road trip and staying a the holiday in (or camping). I'll try to level it out by having 2 or 3 years worth of expenses in CD's or a HYSA... so if 2032 starts a bad stretch for the stock market my spending can kind of glide down to a much lesser spend in 2034.

Lots of reasons covered elsewhere - VBIL (or your MMF of choice) yields more than HYSA, but is less accessible compared to a HYSA.

Don’t the target date funds rebalance automatically as you approach the target date? I’d assume that’s what you still want. If in doubt, DCA into the market monthly. You can earn decent interest right now so it’s not like your cash is rapidly losing value in a money market fund, HYSA, or similar.

The statistics say lump sum… but emotionally sitting at an ATH I’d personally split it up into 3 or 4 chunks and buy in every quarter or so, leave the remainder in a HYSA or similar (like SGOV?) until then 

Depends on your HYSA interest rate and if it is worth the hassle.

SGOV buys T-Bills which is like a lower cost MMF. Becauae it's short-term, the NAV price doesn't fluctuate like longer-term treasuries.
Basically, if you want a liquid investment where you can't lose money, you have your choice between HYSA or SGOV/VBIL/USFR. CDs and buying T-Bills directly are other zero volitility investments, but they're not liquid. Longer-term treasuries are either not liquid and the capital price can fluctuate based on interest rates (so you can lose money).

Some are easy (set and forget HYSA, 529s, BSPIX, XOM dividends, SGOV)
Some I have through friends that are brokers for a flat fee no management.
VTI and a few select through a taxable brokerage account.
If you can do simple excel spreadsheets, you can manage money.
Real estate has been lucky honestly.
Read The Undoing Project by Michael Lewis.
There are very real psychological trends in the way group psychology shapes decision making and it's not that hard to play the trends and not get bogged down by traditional norms of behavior in value.

No you can find HYSA with 5% on it at the moment

I've kinda run out of places to put money.
SGOV, HYSA, Max 401K into BSPIX, QQQ, VTI, remodel paid off $800k house, 529 for kids, GOLD, NVIDIA, GOOG, SPY, RDDT, PLTR...?
XOM, BRK.B, STFGX?

VTI ETF/ VXUS ETF 85:15 ratio after maxing out 401 k and Roth IRA. 6 months emergency fund in HYSA or T Bills.
Start tracking your annual fixed expenses so you can see how they change over the decades. You will use this information as the basis for your “safe” money allocation in retirement to get you through recessions. Leave the remainder in the well diversified ETFS.
Most importantly, educate yourself so you can handle your own money.
There will be many people who will tell you they can “help you earn more on your investments” but if that were true, they would not need your money, they would make their own.
Financial advisors tell you not to take money out of the market when it is down but the FA certainly takes it out in fees when the market is down.

What's your 5 year plan?
Will you move out? I assume so. Start budgeting for that time. Will you still be able to "max your 401k and Roth" when you move out? Is that your goal? Why are you saving at XX% rate? Just questions to ask yourself.
I'd look 5 years down the road and estimate your expenses. Put all of that money in a HYSA. Invest the rest as you're doing. Then, when you really do move out, you're paying your taxes, you're investing as you've planned, and you can stop plunking money into the HYSA and start living on that cash flow. The HYSA savings can be a down payment for a home.

Personally I would put about 3 years of living expenses in a HYSA and invest the rest. If you want safety then go higher on bonds but that is a lot of money to be not working hard for you mom and you ultimately. With $5m I would recommend hiring a CFP.

You should move from HYSA to money market for better returns.

Make VMFXX your money market if you make less than $197,300 single/$394,600 married.
Make VUSXX your money market if you make more than $197,300 single/$394,600 married.

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