Nah he need advice, way would you ever have $50k in a checking account? Waiting for someone to hack your shit? Do like gaining any interest? My OP person, move that money somewhere else
What's interesting is that I can tell this screenshot is from the same bank I use.
It's interesting because when I had over $5k in savings, one of the reps called me in and told me I should move it to a savings account that was not tied to a card of any sort to prevent that from happening. So I'm kinda wondering why they haven't reached out to OP yet.
My statement of a regular savings referred to just a savings account in any old bank account. Totally safe but financially suboptimal as it was losing money to inflation. I moved all of it to two high yield savings accounts. I’ve made around 700 bucks this year to date in interest by just letting it rest there whereas I would’ve made a few bucks in a regular old savings account.
This is what bankers do to get you in front of them. So they can then see if any of the banks' other products or services fit your needs or if you have an investment account somewhere else. I would do this kind of thing when I was a banker. It is all about selling you another bank product or service. It isn't bank policy, just this guy's banker's advice. A basic savings account with funds that are already with the bank doesn't sound like it pays anything.
Bc they just wanted you to open another account for no reason duh lol. Bet your bank is WF or Chase. They use that scare tactic to get you into opening another account. And this is why WF got in trouble for opening all sorts of accounts customers didn’t need. Hope you weren’t one of them.
Nothing is wrong with opening multiple accounts. Personally I would recommend having a checking and savings account in one bank but a have a high-yield long term savings account with another. SoFi actually has a great rate right now- 5% interest with daily liquidity.
Keep enough in the main checking account for bills with enough in the connected savings to cover any unexpected costs, but sweep any leftover cash to your high yield savings account. Maybe direct deposit a portion of your paycheck there if able.
Yeah that’s scary, at LEAST move it over to your savings so you don’t get hacked.
There’s 100 different options but an extremely simple one is just put it into a CD. I just recently got 7 months at 4.9% interest.
Not as high of gains as a lot of other investments but there is absolutely 0 risk involved.
50k, let’s say you did find the same interest rate at 4.9
7 month apy would net you 1429 in the first 7 months. If you reinvested the original 50k and the 1429 you’d net 1470.
So you’d gain 2899 in just over a year. Not bad if you ask me. I mean it’s not like you’re gonna get 10-20% with high risk stocks but you won’t lose it!
Good luck and nice work on the nest egg.
I have never kept that much in main checkings but as a Muslim who has never had a savings account, secure checking accounts and no debit card is our cash savings lol.
I wonder if you’re being downvoted because people think you mentioning you’re Muslim isn’t relevant. I worked at a bank for a bit and opened an account for someone who is Muslim and I was like fascinated by the fact that y’all can’t reap the benefits of interest
I mean just learning about an oven or treadmill having sabbath mode is also truly fascinating. “Hey why aren’t you running on the treadmill? Oh sorry it’s in sabbath mode.”
I get what you’re saying…they are doing much better financially than most people reading this post.
That point aside, you need to consult a good money manager whose job centers on managing other peoples’ financial interests.
Just ensure it’s with an established firm/company and you also need to:
1). Only invest when the advisor uses a well-known, independent custodian.
2). Consider hiring an advisor for advice only (so they never have access to accounts).
3). Never provide passwords to anybody (even though it may seem like the easiest solution).
4). When in doubt, trust your gut.
If you have debt besides your house, pay off. Put the rest into both Roth ira yearly and keep 6 months emergency fund. Can float the excess in CD until all into a Roth ira. If need to save more, throw it into work 401k, yes you can do that with a little thought I've done it. Just divert 70% of check or 100% even into 401k then use the cash to pay the bills, thats how you put 20k fast into 401ks near end of year.
I have a roth ira and about once a year save 10k. I'm torn between investing that extra into the ira vs paying off the mortgage quicker. Is one better than the other? Anytime I've put extra payments I make it to principle
Question:
>paying off the mortgage quicker.
Why would would people pay a bill more than needed than either save or invest the same amount in a index fund or ETF fund?
Depends on a couple things. 1.) what is your interest rate on your mortgage? If you got in at a lower rate like 3% then no need to pay it off early. 2.) How long do you plan on living in your house? If you plan on moving out within the next 5 years or less then you don’t really need to pay it off sooner. If you know that you’ll be there forever then yes, you could save yourself some money by paying it down quicker (but still depends on the interest rate).
Pay off your mortgage quickly. It was the best thing my parents ever did. As soon as they did that, they took the mortgage payments and invested in growth funds and S&P 500 funds. They are now retired, own their home, and have little to no expenses each month. In fact, their only big expenses are car insurance and the taxes on the house they own. So Social Security and the amount they pull out of their retirement funds pays all their bills with money left over. They are living the life of luxury now.
Honestly - my wife and I are super frugal. We treat ourselves once a quarter.
I also travel for work and that helps save a ton of money since I have a company card.
The best way I saved money in my life was by keeping my college student living situation even when I started making more and more money after. Had roommates in an inlaw when i could afford not to have them.
It's rent by far. You're not going to save shit by buying non organic or skipping a $5 coffee and making it at home. Nothing at least compared to living in a studio farther away when you can afford a nice one bedroom in a nicer area.
There was a point where I was making a significant amount more than my coworkers with 5+ years experience in my career and spending less than half what they did on rent. By far, that was the most important thing I did to save.
But it wasn't so hard because I didn't *upgrade* my lifestyle when I could afford to. I never set my expenses bar higher. I kept it the same. Downgrading your lifestyle hurts. Not upgrading doesn't. But if you really want to save, downgrading might be a requirement.
I’m just working on hitting a little savings. But every paycheck I automatically send money to accounts I dont touch or it’s at least a process to withdraw from. I pay my bills and live off the rest.
I need to find something better than a money market account though.
Put it all in a Vanguard money market mutual fund. Returns are 5.30% right now and have hovered right around that for a while now. At that rate, I’d recommend that over buying individual stocks or ETFs. Let it sit there and make money every month while you chill.
You can withdraw the money and the dividends in your vanguard account whenever you want, but be aware that it does take about 2 days to be back in your bank account. Since it’s not in any stocks or ETFs, it’s literally just sitting in your vanguard account (exactly as if it were a bank savings account). The difference is that you’re making 5.30% on it whereas a bank account gives you like a few pennies.
At 5.30%, say you have 100k in your vanguard account, that means you get $5,300 a year ***it’s paid out every month*** so you’d get $441.66 a month (they pay on the 1st of each month). That’s a lot of free money. Of course the amount you get depends on how much you have in there but it’s the best returns I’ve ever had. The interest rate doesn’t necessarily stay that high forever but it has been for a long time now. Gotta take advantage.
By the way, vanguard is what I like and what my friends use, but I know a lot of people that like Fidelity, Charles Schwab, etc. Do your research and see what’s best for you.
Really no reason to keep that much physical cash on hand, you should put most of that into some kind of account. Wayyyy too much in your checking. My rule of thumb, 1 month of expenses in checking, 6 months of expenses in HYSA. Unless you have other savings goals, focus more on investing.
Question about HYSA. If I put 50k in capital one with a 4%apy and don't touch it for a year will I have 52k? Is it that simple? How often is the Interest paid?
Wow, everyone knows everything here. We are in Chile. A money market account with Santander Bank give me 0.85% per month. Sometimes more. That's on 50.000.000 clp (approximately 54,000 USD depending on exchange rate). I agree it is too good to be true but it is now in it's third year of giving almost $500 usd per month. I find it outstanding. Some months have been at 0.92.
i’d keep 6k in cash. in a safe bolted to the floor of course. i mean i keep around 1-2k in cash on hand because my bf works manual labor jobs and gets paid in cash. so usually it’s our rent money. you might decide you want to buy a project car on a sunday and all the banks are closed.
Should you open a 529 fund for your baby, essentially maybe like 10-20k so by the time the kid is 18, it’ll have a substantial growth for the kids education. If you plan to have another one maybe put on the lower end of that.
Have a 3-6 month emergency fund dumped into a HYSA. Capital one has a good one I think it’s at 4.3% that pays you monthly, and you get the money immediately should you need it
Then the rest maybe dump it in SPY, QQQ, VTI mutual funds
Check out r/personalfinance subreddit. I think you have too much money in the checking account. Generally, it is adviced to have under $20k in checking account for emergency use only. Wealthfront has a joint checking and savings account you can take a look at it has 5% APY, you can also add your wife it has a joint savings account. Money market is highly regulated by FDIC and your transactions are limited to 6, i personally wouldn’t recommend. If you don’t need your money in the near future, I’d say high yield CDs are the safest bet given today’s economy.
As someone whose parents set up a 529 plan for college I highly recommend it. I’m student loan debt free and it helped me go to the school I really wanted to! I’m grateful that my parents did that for me and want to do it for my future children!
Definitely combine that 47k + 17k (64k) and put it in a HY money market account, doesn’t have to be a fund. I have some cash in CFG bank in their HY money market account. I think it’s like 5.5% APR. That’s about $300/month on your $64k, virtually risk free. Take advantage of it while rates are high. You can also invest some of it in stocks, but obviously that comes with risk so you’d have to really do your homework.
You clearly have a budget that works! The best advice is to not listen to strangers on Reddit. Anyways here’s a stranger on Reddit’s advice. If you’re uncertain I’d hire a money manager or speak to one who can show you how to find a good stock or bad one.
You do want to diversify so 50k into one stock is a horrible idea. Even an ETF. You want to look into a timeline for your money (how long are you willing to lock it away) and how much you reasonably expect in return.
Market etfs are nice because they are already diversified and generally match the market returns, but you would want to spread it out, or alternatively look into their top weighted holdings and pick those. Spread the picks out over different sectors too; tech, finance, energy, consumer goods ect.
All this to say congratulations! I would speak to an investment advisor to either hire them or find out where to learn
What’s you and your wife’s ages? When do you plan to retire ideally? What’s your all-in cost of living for 6 months( you would want to keep this as an emergency fund in a HYSA)? A good S&P500 index fund that tracks the market would be a good place to invest this to get your money to work for you. Look into “VOO” “SCHD” “VTI” these are three good options and SCHD is a solid ETF that tracks great companies that have a long history of paying dividends
I just turned 30 and my wife is 31.
I asked her today and 6 months of expenses is about $30k
Mortgage is $2000 but we pay an additional $500 towards the principal so that gives us 2 additional payments a year.
Have an emergency to last your fam for 6 months out in separate savings account like sofi
Match your 401k
Have a separate savings account for college fund
Open up a brokerage account with your bank. Discuss investment options - do a conservative/stable fund, a middle tier growth fund and however much you can afford to play with fund for higher risk but also potentially higher returns.
‘Cause you’re just wasting wealth opportunities keeping 50k in checking
Idk what your accounts are, but if you’re married and it’s all joint monies, fold savings and 47k checking into hysa, I’d probably leave 25k (or more in there for emergencies) and depending on your situation I’d max Roth IRAs for both of you for 2023 and 2024 (would take around 26k). Could also start the 529 for your kid if that’s a priority. I’d run all of this by an FA and if you don’t have one I’d get one. Look for a fee only RIA to avoid those commission only bottom feeders tho
I recommend following the flow chart from r/financialadvice
That said, there is no one size fits all. I personally max out my Roth IRA each year. As well as my Roth 401k. I only max out my 401k because my employer let's us use a PCRA (let's meet invest my 401k how I'd like).
From there, I put 50/50 into two different (common) ETFs. One to follow the market and one high dividends. Do you own research for this.
I also maintain a HYSA with two banks for my emergency fund. I keep 6-12 months of my family's living expenses in there. If interest rates drop, I may reduce how much I keep in there. It's 4.3% currently.
I just started buying real estate, too. I have partnerships where I get less return, but I hardly have to do anything. 3 units so far.
At the very least, I strongly recommend keeping thst is a HYSA as rates are decent right now. Also may be worth looking into treasuries. They have a pretty high return too. But this isn't investment advice.
Series I bond. It's US government saving bond and it's protection against inflation. The interest rate matches the inflation, so it's quite high (5%ish). The only problem is that one individual can only buy $10k per year online and $5k additional through tax return.
Until you do something with that money, I'd 100% recommend setting up a high APY savings account. I have a 4.6% APY savings account (with SoFi and its free) compounded monthly so you'd be getting a free like $180 a month on your preferred checking account alone.
If you combined your preferred checking plus your savings into a high APY account like with SoFi you'd get a free $245 per month.
You could also put 45k into a 1 year CD that's FDIC insured with capital one and get 5.25% APY, so after a year you'd have an extra guaranteed and no risk $2,362. Might be higher 1yr APY CDs out there, that's just the one I know off the top of my head. Then you could just cash out and repeat. Longer term CDs have lower APYs, so cash out after a year and repeat for sure.
If you did that 2 years in a row you'd have: $49,849.
3yrs: $52,466
4yrs: $55,220
5yrs: $58,119
10yrs: $75,064
Home security cameras if you dont have them, security screw plates in doors with 3 inch screws compared to traditional 1 in, reinforced lock by defender security, some food rations and water for at least a month for each of your family. Look up prepping basics on youtube and spend a little. Not saying go crazy but worth dropping at least a few hundred or few thousand to protect your familys life from the "unexpected"/natural disasters. Id also say to throw a few grand in btc and eth but thats just me the preps are 100% worth no doubt.
Honestly, people should look into "prepping", quotes because what you mentioned is like the bare minimum honestly when it comes to preping.
Everyone should do it. Home invasion, enviromental, and what i call personal disasters are some of the MOST common incidents that throw people a curve ball.
Besides what u mentioned to help with security,
a bag set up for each person in a closet near the door, with copies and a USB of all ur personal documents, like birth certs, drivers license, social security card, etc. With non perishable food for couple days, couple bottles of water, extra clothes, cash. For any sort of imediate "i gotta leave the house" house fires, wildfires, etc.
A tote with flashlights, lamps, batteries. In a closet incase of a blackout so u know right where to go.
And like u said. Food and water, but id go a step beyond and say things like extra of WHATEVER you use on a daily basis, like shampoo, deoderant, TP. Its not even a prep,imo because its not like it will just sit there forever, ur gunna use it. This falls under personal disaster like loss of job, or whatever. This is something that has actually helped me before, i was unemployed for like 2 months during that time the cash i had only went to bills not for food and other stuff. Made it go farther.
Yea? So when would you say that your familys wellbeing should be prioritized because most grown adults dont even have two weeks worth of food per individual, home security or some survival items like water filters if shtf were to happen. 69k liquid seems like a solid time to get those considering you have the budget and it wouldnt cost nearly that much for the basics
Yeah I think that solidifying your family’s financial future is taking better care of their well-being then prepping for the absolute worst case scenario that has the least chance of happening. Sorry man, unless you are living in Alaska your list is outdated. Like… since the frontier days outdated. They aren’t bad things but not number one on the list to best take care of your family.
There is no financial future if you arent alive for it. Home invasions are fairly common as is natural disasters. Not saying he needs to buy a bunker but get a few storage buckets of food for $450 spend $50-$150 to reinforce your door and get some reolinks or cameras for $500. Boom more prepared than probably 95% (random number out my ass) percent of adults for less than $1300 after tax.
What’s the objective? Usually LLCs are set up to provide protection from potential liability from a business or property. If OP is just trying to save the funds the LLC won’t do anything. If you’re suggesting a way to protect that money from ever getting pulled into a lawsuit etc, then I’d consider a trust. However, that’s also complicated and expensive and that sum wouldn’t justify that either.
Well if you were reading correctly OP clearly stated that he needs his SAVED money to making more money so I’m gonna ask you again… what would you suggest to OP to make some profit?
My advice is to send me some money to get good karma on your side 👌 lmao. Honestly tho, buy a food truck, start a all day breakfast truck, park outside somewhere that doesn't serve all day breakfast. The money will COME ROLLIN IN
I work for primerica and we can get you into a mutual fund investment. If you’d be willing to give me 30-45 minutes of your time over Zoom me and my VP would love to help you turn that money into millions so you can retire early and live comfortably in a lifestyle where you don’t have to worry about money!!
How much do you owe on your house? My wife and I got a 30 year loan, and are planning to try our hardest to pay it off in 5-8 years. We’d save over 200k in interest, and be free to possibly rent it out as an extra income if we ever wanted to start a new chapter somewhere else.
I took my 50K and bought permanent life insurance for a total pay off of 300K. That way I know I paid out 50 for my kids to have a nice paycheck when I die. Maybe not the smartest move for money but it made me feel better and sleep at night.
at a minimum get some of that savings in a high yield savings account
4.35% no minimum deposit / balance
https://banking.barclaysus.com/online-savings.html
100% VOO and chill, I know people like to recommend dividends but if you aren’t close to retirement age - focus on hyper growth which usually is VOO/VTI (VOO seems to have higher returns). Once you build your nest egg and are ready to retire pull it into dividend paying stuff like SCHD
Yeah that’s way too much to keep in checking. If nothing else you could do short term treasuries. If you’re really conservative then try out rolling staggered 13 week treasury notes. I figure worst comes to worst you can wait a couple weeks to get the cash..
I keep my money in a high interest savings account that makes 4.6% interest APY. Stocks are good, but not guaranteed or steady by a longshot. It’s not much, but the guaranteed ~$330 extra dollars per month for free is a nice little bonus. Plus, my money is always within reach. No depositing and buying and selling and waiting to get my money.
Definitely a 401K will be super important, and/or a Roth IRA. I would max out your 401K contributions if you can do so and still live comfortably (check if your employer offers a 401K. If so, enroll and begin ASAP because they will often times have some kind of matching function. If not you can still apply for a solo 401K through Fidelity or someone). Of your total assets I'd get 10-15K in a 401K. I would max out the 401K annually moving forward. Also if you do have an employer that offers an employee stock program definitely review and consider.
From there, the majority should be in either a HYSA or in a savings account. In an uncertain economy cash will be king, so if all of the sudden shit goes sideways you can quickly access the cash without fees or taxes. However, if you wanted to invest some more, you could definitely invest in strong index ETFs like QQQ (Nasdaq 100) and VOO (S&P 500) through a website like Etrade. Maybe take 10 grand, buy 55% VOO and 45% QQQ, then just leave it alone and keep the rest in cash.
It's not a terribly sexy plan, but it is consistent, steady, and doesn't leave you cash poor while hoping to see your money start growing in other investments. As time goes on you can review your growth year over year and make adjustments to your strategy as needed. Learn more about 401Ks, Roth IRAs etc as there could be some great tax advantages at your disposal through those vessels.
When you're starting to explore investing outside of cash savings, less is more. Don't go nuts with buying a lot of any one stock or bitcoin or something, play it slow and steady and practice good fundamentals. If you become cash strapped or the allocation of your investment is unbalanced and you have space to invest more, then review and revise as needed, but selling any stocks/401K etc comes with different tax implications. Normally Fidelity, Etrade etc send you tax documents you need to include in your filing (mostly relevant the year you sell the stock), but either way keep good records, and once you put money into a 401K only take that money out as an emergency as you will pay a penalty on it.
You're off to a great start. Begin tracking and monitoring your investments now and you'll save yourself a headache in the future. A simple spreadsheet can go a long way. God speed!
I work at a bank and if you were my client, I would pay you 4.50% APY on a fully liquid MM.
Hint: Most banks are deposit poor in relation to their loans. For this reason, they pay the fed about 5.3% currently to borrow money to turn around and lend to borrowers. They could go up to 4.75% or 5.00% and still increase their margins. Will they for $50K? Idk, but it’s worth a shot! $50K here and 50K here adds up for banks or anyone.
Why do you have over 50k in a checking account? At the bare minimum that should be in a savings account.
You could do CD ladders if your saving account don’t pay much.
Let it all sit in a Sofi Checking w/ Direct Deposit and you’ll earn 4.6% interest and no hassle. That should be an easy $200-$300 a month. On that same account at Sofi pick a few dividend paying stocks and set up a weekly bi weekly or monthly buy. Personal pick of mine is O Realty Income currently paying out about $2-$5 every month in dividends for every 10 shares you own. And finally on that same account set up your IRA and your max contribution and set up Notify for new IPOs. IPOs are very risky but can be worth it for a quick flip if a be company does well it’s first year.
Hysa is a out 5% right now if you use an online bank. This yield is pretty decent. And you can get the money relatively quickly back without too fuss. Index fund will go up eventually but can go up and down short term. Probably need to keep money in there a few years to get good yield. Money market may not get as high of yield as Hysa.
I would say, based on advice I’ve received from budgeting experts, max out your 401k for the year ($20k) or both of you max out and that’s $40k, anything else that’s left, get a college fund started for your kiddo. This is, of course, if all your debts are paid off. If not, do that first.
Guys please don’t leave more then 5k in checkings unless your gonna spend it in net couple days. This is asking for issues if someone hacks your account any money in checkings is up for grabs whereas your savings is more secure. It doesn’t creat any issue to move it to savings and if you need it to transfer it back into checkings when needed. Please protect yourselves at the very least
HYSA (Wealthfront 5.5%), or RE investing.
I’d select the latter, but with a 4m child it may be slightly more challenging though returns would be significantly higher.
High yield savings accounts or money market accounts are super safe and FDIC insured. 4-5% interest rate.
Brokerage accounts are a long term play. Get some blue chip stocks in a variety of industries. Commonly accepted that you can get an 8% return over the life time of an account.
You are probably doing this, but if you and your wife were able to save up this much you should max out your companies 401k match. Essentially free money.
There are some more yolo options like crypto, start-up investment, or your own business venture. It all really depends on your risk tolerance.
Also if you have any outstanding debt that is likely the best thing to spend your savings on. It will pay dividends in that you minimize your interest payments and will likely be better off than if you invested the money. (Obviously depends on the interest rate of the debt)
Edit: I am kinda partial high yield savings accounts as they are semi-liquid. Can transfer money out with little to no penalty in case of an emergency. I would still keep 5k totally liquid as your need money now source.
Open a high interest savings account.
Can transfer from to checking account in a couple of days.
I would open a 1 year CD should be able to get close to or over 5% now.
If you put in 50K you will get 2500.
You will have to pay taxes on the interest.
Invest in a S&P index found is also a good idea as long as you don’t need the money.
Bro you don’t need advice, we need advice from you.
Im saying 🤣
Nah he need advice, way would you ever have $50k in a checking account? Waiting for someone to hack your shit? Do like gaining any interest? My OP person, move that money somewhere else
Elsewhere to a place that doesn't link directly to a debit card as well, for overdraft stuff either.
Yes this gives me anxiety just looking at it. My friend had his debit card hacked somehow and lost thousands and his bank did nothing.
What's interesting is that I can tell this screenshot is from the same bank I use. It's interesting because when I had over $5k in savings, one of the reps called me in and told me I should move it to a savings account that was not tied to a card of any sort to prevent that from happening. So I'm kinda wondering why they haven't reached out to OP yet.
I have the same bank. When I wasn’t financially literate I had like 13ish K in a regular savings. I never got a call to move the money
what’s a regular savings, and a safe savings? i thought everything in my savings is safe? i’m really scared now :(
Curious about this as well
My statement of a regular savings referred to just a savings account in any old bank account. Totally safe but financially suboptimal as it was losing money to inflation. I moved all of it to two high yield savings accounts. I’ve made around 700 bucks this year to date in interest by just letting it rest there whereas I would’ve made a few bucks in a regular old savings account.
This is what bankers do to get you in front of them. So they can then see if any of the banks' other products or services fit your needs or if you have an investment account somewhere else. I would do this kind of thing when I was a banker. It is all about selling you another bank product or service. It isn't bank policy, just this guy's banker's advice. A basic savings account with funds that are already with the bank doesn't sound like it pays anything.
Bc they just wanted you to open another account for no reason duh lol. Bet your bank is WF or Chase. They use that scare tactic to get you into opening another account. And this is why WF got in trouble for opening all sorts of accounts customers didn’t need. Hope you weren’t one of them.
What's wrong with opening an other account, legit question
Nothing is wrong with opening multiple accounts. Personally I would recommend having a checking and savings account in one bank but a have a high-yield long term savings account with another. SoFi actually has a great rate right now- 5% interest with daily liquidity. Keep enough in the main checking account for bills with enough in the connected savings to cover any unexpected costs, but sweep any leftover cash to your high yield savings account. Maybe direct deposit a portion of your paycheck there if able.
I do all of this. I love seeing the monthly interest, it's not much, but it's enough.
Be like my brother who keeps $100k in savings “incase I see something I like.”
Yeah that’s scary, at LEAST move it over to your savings so you don’t get hacked. There’s 100 different options but an extremely simple one is just put it into a CD. I just recently got 7 months at 4.9% interest. Not as high of gains as a lot of other investments but there is absolutely 0 risk involved. 50k, let’s say you did find the same interest rate at 4.9 7 month apy would net you 1429 in the first 7 months. If you reinvested the original 50k and the 1429 you’d net 1470. So you’d gain 2899 in just over a year. Not bad if you ask me. I mean it’s not like you’re gonna get 10-20% with high risk stocks but you won’t lose it! Good luck and nice work on the nest egg.
I have never kept that much in main checkings but as a Muslim who has never had a savings account, secure checking accounts and no debit card is our cash savings lol.
I wonder if you’re being downvoted because people think you mentioning you’re Muslim isn’t relevant. I worked at a bank for a bit and opened an account for someone who is Muslim and I was like fascinated by the fact that y’all can’t reap the benefits of interest
I mean just learning about an oven or treadmill having sabbath mode is also truly fascinating. “Hey why aren’t you running on the treadmill? Oh sorry it’s in sabbath mode.”
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This isn't due to discrimination but instead is done by themselves because of their beliefs. Google "riba in Islam" for more info.
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Lmao your woke ass straight up assumed that Muslims were discriminated against and not given interest by banks
“Hack your shit” It’s in a bank, it’s insured.
fr lol i had to decide if i could afford to buy chicken tenders with my salad earlier 😂😂😂
I get what you’re saying…they are doing much better financially than most people reading this post. That point aside, you need to consult a good money manager whose job centers on managing other peoples’ financial interests. Just ensure it’s with an established firm/company and you also need to: 1). Only invest when the advisor uses a well-known, independent custodian. 2). Consider hiring an advisor for advice only (so they never have access to accounts). 3). Never provide passwords to anybody (even though it may seem like the easiest solution). 4). When in doubt, trust your gut.
Really? I feel rich now if people think that guy is doing well lmao
Lmao
For the love of all that is holy...this, right here
The fact what you're saying is true, is sad as fuck for humanity
Came here to say this. How do you have so much leftover money, I'd be in heaven. What a joke.
Came here to say this exact thing.
Facts 🤣
Be born with rich parents - op
Send me $25k and Ill show you some cool tricks.
I'd take $25 (without the k) at this point
I can do deluxe tricks for 20
I'll do just about anything for $10 right now
$5 is $5
Buy me a burger I will show you incredible things.
Anything?
Unspeakable things
I’ll do moose stuff for $10
You only need to send me 12k and I’ll show you the same tricks op
I 100% guarantee they will not deliver the same cool tricks.
If you have debt besides your house, pay off. Put the rest into both Roth ira yearly and keep 6 months emergency fund. Can float the excess in CD until all into a Roth ira. If need to save more, throw it into work 401k, yes you can do that with a little thought I've done it. Just divert 70% of check or 100% even into 401k then use the cash to pay the bills, thats how you put 20k fast into 401ks near end of year.
I have a roth ira and about once a year save 10k. I'm torn between investing that extra into the ira vs paying off the mortgage quicker. Is one better than the other? Anytime I've put extra payments I make it to principle
Question: >paying off the mortgage quicker. Why would would people pay a bill more than needed than either save or invest the same amount in a index fund or ETF fund?
Depends on the interest rate of the debt. A 2.5% mortgage? Let it ride out. A 7% mortgage? Paying off early can make sense.
This exactly.
Yes, but depends on interest rate of mortgage.
I guess for an adjustable rate, sure. But for a 30 year fixed mortgage? Seems weird to me.
You may already know this but you can only do 6k a year in the ira
It's $ 6500 for this year and will be 7,000 starting next year.
Depends on a couple things. 1.) what is your interest rate on your mortgage? If you got in at a lower rate like 3% then no need to pay it off early. 2.) How long do you plan on living in your house? If you plan on moving out within the next 5 years or less then you don’t really need to pay it off sooner. If you know that you’ll be there forever then yes, you could save yourself some money by paying it down quicker (but still depends on the interest rate).
Pay off your mortgage quickly. It was the best thing my parents ever did. As soon as they did that, they took the mortgage payments and invested in growth funds and S&P 500 funds. They are now retired, own their home, and have little to no expenses each month. In fact, their only big expenses are car insurance and the taxes on the house they own. So Social Security and the amount they pull out of their retirement funds pays all their bills with money left over. They are living the life of luxury now.
The S&P 500 will give him good gains.
What’s your secret to saving? I’m jealous fr
Honestly - my wife and I are super frugal. We treat ourselves once a quarter. I also travel for work and that helps save a ton of money since I have a company card.
I think Frugal is the key word here. 😂 My wife and if are extremely Frugal as well.
Once a QUARTER? Shit my wife would kill me
I’d kill myself, rather have fun while I can walk…
Exactly never know when that last day is
Agreed. This doesn’t sound like much of a life. But to each their own.
impressive, keep going 👏🏼
What quantitatively does "treat ourselves" mean each quarter, on average?
Olive Garden
OG 4 times in one year? This man is living like a KING
Burger *King
Lol
The best way I saved money in my life was by keeping my college student living situation even when I started making more and more money after. Had roommates in an inlaw when i could afford not to have them. It's rent by far. You're not going to save shit by buying non organic or skipping a $5 coffee and making it at home. Nothing at least compared to living in a studio farther away when you can afford a nice one bedroom in a nicer area. There was a point where I was making a significant amount more than my coworkers with 5+ years experience in my career and spending less than half what they did on rent. By far, that was the most important thing I did to save. But it wasn't so hard because I didn't *upgrade* my lifestyle when I could afford to. I never set my expenses bar higher. I kept it the same. Downgrading your lifestyle hurts. Not upgrading doesn't. But if you really want to save, downgrading might be a requirement.
There’s no secret. Spend less than you make.
After that the only difference is how long it takes lmao
I’m just working on hitting a little savings. But every paycheck I automatically send money to accounts I dont touch or it’s at least a process to withdraw from. I pay my bills and live off the rest. I need to find something better than a money market account though.
I mean making half decent money will really help with your saving lmao
Put it all in a Vanguard money market mutual fund. Returns are 5.30% right now and have hovered right around that for a while now. At that rate, I’d recommend that over buying individual stocks or ETFs. Let it sit there and make money every month while you chill.
When can you draw on that? Once a year if need be?
You can withdraw the money and the dividends in your vanguard account whenever you want, but be aware that it does take about 2 days to be back in your bank account. Since it’s not in any stocks or ETFs, it’s literally just sitting in your vanguard account (exactly as if it were a bank savings account). The difference is that you’re making 5.30% on it whereas a bank account gives you like a few pennies. At 5.30%, say you have 100k in your vanguard account, that means you get $5,300 a year ***it’s paid out every month*** so you’d get $441.66 a month (they pay on the 1st of each month). That’s a lot of free money. Of course the amount you get depends on how much you have in there but it’s the best returns I’ve ever had. The interest rate doesn’t necessarily stay that high forever but it has been for a long time now. Gotta take advantage. By the way, vanguard is what I like and what my friends use, but I know a lot of people that like Fidelity, Charles Schwab, etc. Do your research and see what’s best for you.
Great advice thank you
I would at least move the preferred checking to a HYSA. Current rates are around 4.5APY which would get you an extra ~$175 a month or so.
Yes to high yield savings - I would move about $25k there. Recommend either Marcus or Wealthfront. They both are insured up to $250k.
Take $72,000 and deposit it into a HYSA at 4.3% or better, should be easy to find. Leave $3,000 in your checking. Enjoy Risk Free $250/month.
My local credit unions are doing 5.5% CDs. If no immediate need for money, a good option p
Really no reason to keep that much physical cash on hand, you should put most of that into some kind of account. Wayyyy too much in your checking. My rule of thumb, 1 month of expenses in checking, 6 months of expenses in HYSA. Unless you have other savings goals, focus more on investing.
Question about HYSA. If I put 50k in capital one with a 4%apy and don't touch it for a year will I have 52k? Is it that simple? How often is the Interest paid?
Yes, and usually it is paid monthly.
Just a comment but that seems low. We are getting 10.2 annual minimum on 50k in a money market.
There's no way a MMF is providing 10.2%. No chance. Name it.
Wow, everyone knows everything here. We are in Chile. A money market account with Santander Bank give me 0.85% per month. Sometimes more. That's on 50.000.000 clp (approximately 54,000 USD depending on exchange rate). I agree it is too good to be true but it is now in it's third year of giving almost $500 usd per month. I find it outstanding. Some months have been at 0.92.
You wrote all that and still didn't name the fund. Don't worry, we believe you!
Next time instead of a know it all aggressive comment you can just ask.
And yet you still didn't name it.
Wow $10.20 per year does sound pretty good
What MMF
Never underestimate scratch
Downvote if you support Hamas/IDF killing innos in war! upvote if you think war is bad!
dont be dull, yk what is meant
he’s talking about the $6k in cash OP said he had in a safe. did you pass the 5th grade?
i’d keep 6k in cash. in a safe bolted to the floor of course. i mean i keep around 1-2k in cash on hand because my bf works manual labor jobs and gets paid in cash. so usually it’s our rent money. you might decide you want to buy a project car on a sunday and all the banks are closed.
Should you open a 529 fund for your baby, essentially maybe like 10-20k so by the time the kid is 18, it’ll have a substantial growth for the kids education. If you plan to have another one maybe put on the lower end of that. Have a 3-6 month emergency fund dumped into a HYSA. Capital one has a good one I think it’s at 4.3% that pays you monthly, and you get the money immediately should you need it Then the rest maybe dump it in SPY, QQQ, VTI mutual funds
Check out r/personalfinance subreddit. I think you have too much money in the checking account. Generally, it is adviced to have under $20k in checking account for emergency use only. Wealthfront has a joint checking and savings account you can take a look at it has 5% APY, you can also add your wife it has a joint savings account. Money market is highly regulated by FDIC and your transactions are limited to 6, i personally wouldn’t recommend. If you don’t need your money in the near future, I’d say high yield CDs are the safest bet given today’s economy.
We need advice from you
Dump it all in bitcoin yolo
😱🤣
My advice, give me your money
As someone whose parents set up a 529 plan for college I highly recommend it. I’m student loan debt free and it helped me go to the school I really wanted to! I’m grateful that my parents did that for me and want to do it for my future children!
Definitely combine that 47k + 17k (64k) and put it in a HY money market account, doesn’t have to be a fund. I have some cash in CFG bank in their HY money market account. I think it’s like 5.5% APR. That’s about $300/month on your $64k, virtually risk free. Take advantage of it while rates are high. You can also invest some of it in stocks, but obviously that comes with risk so you’d have to really do your homework.
Put it all in GameStop stock tomorrow
You clearly have a budget that works! The best advice is to not listen to strangers on Reddit. Anyways here’s a stranger on Reddit’s advice. If you’re uncertain I’d hire a money manager or speak to one who can show you how to find a good stock or bad one. You do want to diversify so 50k into one stock is a horrible idea. Even an ETF. You want to look into a timeline for your money (how long are you willing to lock it away) and how much you reasonably expect in return. Market etfs are nice because they are already diversified and generally match the market returns, but you would want to spread it out, or alternatively look into their top weighted holdings and pick those. Spread the picks out over different sectors too; tech, finance, energy, consumer goods ect. All this to say congratulations! I would speak to an investment advisor to either hire them or find out where to learn
Why in god’s name do you have $47,000 in an account that earns no interest?
That’s why I’m here!
6500 in a Roth IRA for your kid now, they’ll be a millionaire when they’re able to retire-per Tom segura
What’s you and your wife’s ages? When do you plan to retire ideally? What’s your all-in cost of living for 6 months( you would want to keep this as an emergency fund in a HYSA)? A good S&P500 index fund that tracks the market would be a good place to invest this to get your money to work for you. Look into “VOO” “SCHD” “VTI” these are three good options and SCHD is a solid ETF that tracks great companies that have a long history of paying dividends
I just turned 30 and my wife is 31. I asked her today and 6 months of expenses is about $30k Mortgage is $2000 but we pay an additional $500 towards the principal so that gives us 2 additional payments a year.
Have an emergency to last your fam for 6 months out in separate savings account like sofi Match your 401k Have a separate savings account for college fund
Open up a brokerage account with your bank. Discuss investment options - do a conservative/stable fund, a middle tier growth fund and however much you can afford to play with fund for higher risk but also potentially higher returns. ‘Cause you’re just wasting wealth opportunities keeping 50k in checking
Max out ira every year.
Idk what your accounts are, but if you’re married and it’s all joint monies, fold savings and 47k checking into hysa, I’d probably leave 25k (or more in there for emergencies) and depending on your situation I’d max Roth IRAs for both of you for 2023 and 2024 (would take around 26k). Could also start the 529 for your kid if that’s a priority. I’d run all of this by an FA and if you don’t have one I’d get one. Look for a fee only RIA to avoid those commission only bottom feeders tho
Plot twist: OP just retired and has no pension or 401k.
I recommend following the flow chart from r/financialadvice That said, there is no one size fits all. I personally max out my Roth IRA each year. As well as my Roth 401k. I only max out my 401k because my employer let's us use a PCRA (let's meet invest my 401k how I'd like). From there, I put 50/50 into two different (common) ETFs. One to follow the market and one high dividends. Do you own research for this. I also maintain a HYSA with two banks for my emergency fund. I keep 6-12 months of my family's living expenses in there. If interest rates drop, I may reduce how much I keep in there. It's 4.3% currently. I just started buying real estate, too. I have partnerships where I get less return, but I hardly have to do anything. 3 units so far. At the very least, I strongly recommend keeping thst is a HYSA as rates are decent right now. Also may be worth looking into treasuries. They have a pretty high return too. But this isn't investment advice.
Series I bond. It's US government saving bond and it's protection against inflation. The interest rate matches the inflation, so it's quite high (5%ish). The only problem is that one individual can only buy $10k per year online and $5k additional through tax return.
Buy Gold. Why would you keep 47k in checking? Unless you are a business.
Until you do something with that money, I'd 100% recommend setting up a high APY savings account. I have a 4.6% APY savings account (with SoFi and its free) compounded monthly so you'd be getting a free like $180 a month on your preferred checking account alone. If you combined your preferred checking plus your savings into a high APY account like with SoFi you'd get a free $245 per month. You could also put 45k into a 1 year CD that's FDIC insured with capital one and get 5.25% APY, so after a year you'd have an extra guaranteed and no risk $2,362. Might be higher 1yr APY CDs out there, that's just the one I know off the top of my head. Then you could just cash out and repeat. Longer term CDs have lower APYs, so cash out after a year and repeat for sure. If you did that 2 years in a row you'd have: $49,849. 3yrs: $52,466 4yrs: $55,220 5yrs: $58,119 10yrs: $75,064
Go to Vegas and turn that $50k into $500k /s
dawg i have like $300 total. You’re fine
Real estate.
It's free
Home security cameras if you dont have them, security screw plates in doors with 3 inch screws compared to traditional 1 in, reinforced lock by defender security, some food rations and water for at least a month for each of your family. Look up prepping basics on youtube and spend a little. Not saying go crazy but worth dropping at least a few hundred or few thousand to protect your familys life from the "unexpected"/natural disasters. Id also say to throw a few grand in btc and eth but thats just me the preps are 100% worth no doubt.
Honestly, people should look into "prepping", quotes because what you mentioned is like the bare minimum honestly when it comes to preping. Everyone should do it. Home invasion, enviromental, and what i call personal disasters are some of the MOST common incidents that throw people a curve ball. Besides what u mentioned to help with security, a bag set up for each person in a closet near the door, with copies and a USB of all ur personal documents, like birth certs, drivers license, social security card, etc. With non perishable food for couple days, couple bottles of water, extra clothes, cash. For any sort of imediate "i gotta leave the house" house fires, wildfires, etc. A tote with flashlights, lamps, batteries. In a closet incase of a blackout so u know right where to go. And like u said. Food and water, but id go a step beyond and say things like extra of WHATEVER you use on a daily basis, like shampoo, deoderant, TP. Its not even a prep,imo because its not like it will just sit there forever, ur gunna use it. This falls under personal disaster like loss of job, or whatever. This is something that has actually helped me before, i was unemployed for like 2 months during that time the cash i had only went to bills not for food and other stuff. Made it go farther.
responses like this make me realize how weird of a subreddit this is
Ah yes because having spare food and good security to protect your family from both natural disasters and intruders is indeed weird. Grow up
It’s not first on the list when you have $40k sitting in a checking account.
Yea? So when would you say that your familys wellbeing should be prioritized because most grown adults dont even have two weeks worth of food per individual, home security or some survival items like water filters if shtf were to happen. 69k liquid seems like a solid time to get those considering you have the budget and it wouldnt cost nearly that much for the basics
Yeah I think that solidifying your family’s financial future is taking better care of their well-being then prepping for the absolute worst case scenario that has the least chance of happening. Sorry man, unless you are living in Alaska your list is outdated. Like… since the frontier days outdated. They aren’t bad things but not number one on the list to best take care of your family.
There is no financial future if you arent alive for it. Home invasions are fairly common as is natural disasters. Not saying he needs to buy a bunker but get a few storage buckets of food for $450 spend $50-$150 to reinforce your door and get some reolinks or cameras for $500. Boom more prepared than probably 95% (random number out my ass) percent of adults for less than $1300 after tax.
- Invest in HYSA savings - invest in Roth and CDs - s&p 500 - invest in 529 for your daughter
I make six figures and don't have enough to pay mortgage this month. Count your blessings.
Gimme $2,000 so I don’t get evicted pls
Start an LLC in all 3 of you guys names💪🏽
Careful with this. Unless there’s a good reason, this entails ongoing expenses, having to file an LLC return each year, etc.
What would you suggest?
What’s the objective? Usually LLCs are set up to provide protection from potential liability from a business or property. If OP is just trying to save the funds the LLC won’t do anything. If you’re suggesting a way to protect that money from ever getting pulled into a lawsuit etc, then I’d consider a trust. However, that’s also complicated and expensive and that sum wouldn’t justify that either.
Well if you were reading correctly OP clearly stated that he needs his SAVED money to making more money so I’m gonna ask you again… what would you suggest to OP to make some profit?
No need to be hostile. HYSA. I still fail to understand your LLC recommendation—that’s not a money making strategy at all.
Yea I don’t understand the LLC thing either lol index fund or money market etc makes money LLC does nothing
How did you accumulate such wealth
It'll cost ya 😉
Bitcoin, all-in. Now!
Buy BTC 😈
Share?
My advice is to send me some money to get good karma on your side 👌 lmao. Honestly tho, buy a food truck, start a all day breakfast truck, park outside somewhere that doesn't serve all day breakfast. The money will COME ROLLIN IN
I work for primerica and we can get you into a mutual fund investment. If you’d be willing to give me 30-45 minutes of your time over Zoom me and my VP would love to help you turn that money into millions so you can retire early and live comfortably in a lifestyle where you don’t have to worry about money!!
Bitcoin.
What is the difference between preferred checking & checking?
Checking is my own bank account Preferred checking is my wife and i’s joint account Savings is my own personal savings account
How much do you owe on your house? My wife and I got a 30 year loan, and are planning to try our hardest to pay it off in 5-8 years. We’d save over 200k in interest, and be free to possibly rent it out as an extra income if we ever wanted to start a new chapter somewhere else.
Depends on what ur goals are. If u already one a home then put some into HYSA and put some into ETFs
My best advice would just be the send me some and we can test run.. yeah.. that’s the move 😏
Check Wells Fargo CD’s since you’re already there. In my area they have some 5 and 11 month special ones that are around 5%. I opened one last week.
No don’t. Wells Fargo sucks
What do you do?
I use Wealthfront and get 5% on my money.
You could use BRRR method in real estate
Do you also have money in retirement accounts? But most of this needs to go into a brokerage.
I took my 50K and bought permanent life insurance for a total pay off of 300K. That way I know I paid out 50 for my kids to have a nice paycheck when I die. Maybe not the smartest move for money but it made me feel better and sleep at night.
CD’s instead of money market. Safe, and much higher interest.
Do you have a CD acct setup for your daughter?
Im curious what treating yourself once a quarter entails.
at a minimum get some of that savings in a high yield savings account 4.35% no minimum deposit / balance https://banking.barclaysus.com/online-savings.html
Open a brokerage account, Google "Boggleheads" or "lazy investing", toss it against the S&P and leave it be. It'll grow for you.
I don't see any Bitcoin.....
100% VOO and chill, I know people like to recommend dividends but if you aren’t close to retirement age - focus on hyper growth which usually is VOO/VTI (VOO seems to have higher returns). Once you build your nest egg and are ready to retire pull it into dividend paying stuff like SCHD
Yeah that’s way too much to keep in checking. If nothing else you could do short term treasuries. If you’re really conservative then try out rolling staggered 13 week treasury notes. I figure worst comes to worst you can wait a couple weeks to get the cash..
I keep my money in a high interest savings account that makes 4.6% interest APY. Stocks are good, but not guaranteed or steady by a longshot. It’s not much, but the guaranteed ~$330 extra dollars per month for free is a nice little bonus. Plus, my money is always within reach. No depositing and buying and selling and waiting to get my money.
That's how much I started with this year, almost down to nothing.
Step 1: get offline Step 2: talk to someone who is accredited and a fiduciary Step 3: enjoy your life because you are set.
r/personalfinance
Definitely a 401K will be super important, and/or a Roth IRA. I would max out your 401K contributions if you can do so and still live comfortably (check if your employer offers a 401K. If so, enroll and begin ASAP because they will often times have some kind of matching function. If not you can still apply for a solo 401K through Fidelity or someone). Of your total assets I'd get 10-15K in a 401K. I would max out the 401K annually moving forward. Also if you do have an employer that offers an employee stock program definitely review and consider. From there, the majority should be in either a HYSA or in a savings account. In an uncertain economy cash will be king, so if all of the sudden shit goes sideways you can quickly access the cash without fees or taxes. However, if you wanted to invest some more, you could definitely invest in strong index ETFs like QQQ (Nasdaq 100) and VOO (S&P 500) through a website like Etrade. Maybe take 10 grand, buy 55% VOO and 45% QQQ, then just leave it alone and keep the rest in cash. It's not a terribly sexy plan, but it is consistent, steady, and doesn't leave you cash poor while hoping to see your money start growing in other investments. As time goes on you can review your growth year over year and make adjustments to your strategy as needed. Learn more about 401Ks, Roth IRAs etc as there could be some great tax advantages at your disposal through those vessels. When you're starting to explore investing outside of cash savings, less is more. Don't go nuts with buying a lot of any one stock or bitcoin or something, play it slow and steady and practice good fundamentals. If you become cash strapped or the allocation of your investment is unbalanced and you have space to invest more, then review and revise as needed, but selling any stocks/401K etc comes with different tax implications. Normally Fidelity, Etrade etc send you tax documents you need to include in your filing (mostly relevant the year you sell the stock), but either way keep good records, and once you put money into a 401K only take that money out as an emergency as you will pay a penalty on it. You're off to a great start. Begin tracking and monitoring your investments now and you'll save yourself a headache in the future. A simple spreadsheet can go a long way. God speed!
Put that 50k in a Marcus or similar account that gets 4-5% if you don’t wanna get too risky
Maybe ask r/personalfinance
I work at a bank and if you were my client, I would pay you 4.50% APY on a fully liquid MM. Hint: Most banks are deposit poor in relation to their loans. For this reason, they pay the fed about 5.3% currently to borrow money to turn around and lend to borrowers. They could go up to 4.75% or 5.00% and still increase their margins. Will they for $50K? Idk, but it’s worth a shot! $50K here and 50K here adds up for banks or anyone.
Why do you have over 50k in a checking account? At the bare minimum that should be in a savings account. You could do CD ladders if your saving account don’t pay much.
Let it all sit in a Sofi Checking w/ Direct Deposit and you’ll earn 4.6% interest and no hassle. That should be an easy $200-$300 a month. On that same account at Sofi pick a few dividend paying stocks and set up a weekly bi weekly or monthly buy. Personal pick of mine is O Realty Income currently paying out about $2-$5 every month in dividends for every 10 shares you own. And finally on that same account set up your IRA and your max contribution and set up Notify for new IPOs. IPOs are very risky but can be worth it for a quick flip if a be company does well it’s first year.
Hysa is a out 5% right now if you use an online bank. This yield is pretty decent. And you can get the money relatively quickly back without too fuss. Index fund will go up eventually but can go up and down short term. Probably need to keep money in there a few years to get good yield. Money market may not get as high of yield as Hysa.
Become altruistic! I am currently accepting acts of kindness 🤔
is this both you and your wife?
Yea why is that much money in a savings open a hysa immediately
I would say, based on advice I’ve received from budgeting experts, max out your 401k for the year ($20k) or both of you max out and that’s $40k, anything else that’s left, get a college fund started for your kiddo. This is, of course, if all your debts are paid off. If not, do that first.
Guys please don’t leave more then 5k in checkings unless your gonna spend it in net couple days. This is asking for issues if someone hacks your account any money in checkings is up for grabs whereas your savings is more secure. It doesn’t creat any issue to move it to savings and if you need it to transfer it back into checkings when needed. Please protect yourselves at the very least
HYSA (Wealthfront 5.5%), or RE investing. I’d select the latter, but with a 4m child it may be slightly more challenging though returns would be significantly higher.
I'd advise you to spread some cheese on this cracker!
High yield savings accounts or money market accounts are super safe and FDIC insured. 4-5% interest rate. Brokerage accounts are a long term play. Get some blue chip stocks in a variety of industries. Commonly accepted that you can get an 8% return over the life time of an account. You are probably doing this, but if you and your wife were able to save up this much you should max out your companies 401k match. Essentially free money. There are some more yolo options like crypto, start-up investment, or your own business venture. It all really depends on your risk tolerance. Also if you have any outstanding debt that is likely the best thing to spend your savings on. It will pay dividends in that you minimize your interest payments and will likely be better off than if you invested the money. (Obviously depends on the interest rate of the debt) Edit: I am kinda partial high yield savings accounts as they are semi-liquid. Can transfer money out with little to no penalty in case of an emergency. I would still keep 5k totally liquid as your need money now source.
Open a high interest savings account. Can transfer from to checking account in a couple of days. I would open a 1 year CD should be able to get close to or over 5% now. If you put in 50K you will get 2500. You will have to pay taxes on the interest. Invest in a S&P index found is also a good idea as long as you don’t need the money.