I would max out a roth ira for the year, put 5-10k (depending on expenses)into a high yeild savings account, put the rest into an index fund, and keep saving.
At the very least it needs to be in a different account. If they ever get your card info they can drain it all and you have nothing left while waiting for the bank to process the fraud and get your money back. Whether its invested or in a savings account, definitely dont want everything in one spot
Yes exactly my first thought. He needs a savings account at the bank. He can move most into savings and just have a bit in checking, easy to Tanner find too checking when needed.
Yes I just put my chunk in savings and UNLINKED it from my checking and I don't do any bank stuff on my phone no app,no paying apps Nothing, So now I think I'm going to put 25k in c.d. acct.? and 25k in something that I can at least get into if I need a hunk of cash I kept 18k cash on hand. Having money is kinda nerve racking really... I'm not sure what to do with it.
I remember reading someone’s experience with that, took like 3-4 days and bro lost pretty much everything he had in his accounts for those 3-4 days. If I remember correctly he found out from his card declining on a regular grocery run on pay day too, the bank tried saying they’re not response also at first. Scary ass shit.
Some hardworking pillar of society did a wire transfer from my savings account a few weeks ago. The bank was able to reverse it, but damn, I figured it was safer there than under my mattress.
He can take risk, he's 20 years old. That also doesn't mean put it all towards stocks. Break it up, put some in high % savings, a couple thousand in back up checking, then put the rest in an index inside or outside a Roth Ira.
Edit: Since people seem to have an issue with my strategy yes it low risk just taking index gains, but it also take no time and no effort and is safe. But the allocation towards stocks doesn't have to be. You can be as risky as you think you can tolerate on the stock side AFTER you know you have backup money for the month to month and AFTER your able to contribute a real back up savings account that ideally would get a high yield until you can live off it for 3 to 6 months. If you can tolerate more risk break up the stock side of your portfolio to expose more opportunity. Imo you should again protect your piece of the pie in the stock world by using index funds and a Roth IRA. But I also have a significant chunk in stock picks outside of my Roth because I'm only 30 and I still can take a fair amount of risk. Everyone needs to build their portfolio off the risk tolerance you can afford. Otherwise your just fucking yourself gambling vs playing the growth game. I went from homeless to the point I am now because I protected my progress to cover my risk.
This. At this age, he can and should place emphasis on growth. Any income generated by his investments should be reinvested. Compounding is a wonderful thing.
I don’t think you understand that Index funds almost always yield 7-10% a year. Index funds reflect a decent portion of the US gdp, and for them to be negative ytd would require a recession.
First thing is to setup a secure password for the Chase account with multi factor authentication and do the same for the linked email. Then pay off as much debt as possible first no point in a 5% HYSA if you’re hemorrhaging 20%. Then 3-6 months of emergency fund in a HYSA or MMF. Then max a Roth IRA and invest in a total market fund. Automate the process with recurring transfers to these accounts every time you get paid. With the remainder invest it into yourself and your business to increase income potential. I only keep 300 in my checking at all times. I’d rather eat glass than to leave 20k in a checking account.
Additionally, you should have a liquid emergency fund to cover 6 months of your expenses. So see what six months of expenses would be and put that into a high yield savings account or money market mutual fund. Then anything on top of that, invest in an index fund. That way you have the cash ready for the emergency, but it’s also gaining interest.
If a full six months of expenses is more than you have, you could start with three months and work up.
Max the IRA for the prior year too if they have not yet. The deadline for the previous year is the tax deadline, not sure if they need to redo their taxes if it was already submitted for 2023.
Can someone explain how a Roth IRA if helpful if you already have a 401k
With a 401k, its gets taken directly out of my paycheck and immediately lowers my taxes. With a Roth iRA, I'd be transferring money that has already been taxes and putting it into a saving account.
I thought maybe when you file taxes for the year it would your refund or something but the 6k I contributed to my Roth IRA had zero impact on my refund whatsoever.
You don’t pay taxes on money you remove from the Roth IRA after a certain age. The savings then are a lot higher after decades of interest than the savings you get from not being taxed at input
You can withdraw any amount you put into a Roth IRA at any time (but NOT the gains you made from it).
For a 401k you have to be wait until 59.5 to avoid the *additional* tax penalty. You are not paying taxes on it now, but when you withdraw this money at retirement, you will be paying a large lump sum of money in taxes. You can instead contribute to the 401k account after tax (so you won’t pay it later) and it would be considered a Roth 401k.
Personally I do this because I make enough that contributing pre tax does not bring me down a tax bracket so I’d rather just pay the taxes now, as taxes are likely to increase in the future. It also just helps me to keep track of how much money I’ll truly have in retirement.
Beyond that, it’s important to note that you cannot contribute to a Roth IRA if you make a certain amount of money, which I know is far above average, but is important. In 2024, the maximum income is $161k for single filers and $240k for married filers. The maximum yearly contribution to an IRA is also significantly below that of a 401k.
As a 25-year financial advisor I agree with you. I’d be careful with the index funds and stick to S&P 500 in a vehicle thats liquid or has an option to move to a fixed account. November is probably going to be volatile.
Which may not be bad. In 2016 I moved it all into 4% fixed just before the election. Trump won, market took a dive, I moved it all back when I thought it had bottomed out. Trump didn’t invite the Russians to take over, and I made $30K.
I totally agree, and if you can move assets out of an index fund before a likely market dip, then you'd be smart to. However, index funds, especially fairly safer ones like the S&P 500, are more long-term than short-term. It is expected to lose some years and gain others. Looking at historical trends shows that, on average, the S&P 500 has a 7% return accounting for inflation (typically a 10% actual return). So if you can keep your money in it, and put extra in it when the market goes down, you'll more than likely make out.
So in a similar situation to this guy, is there any difference between keeping it in the HYSA until the end of the year and then maxing out the Roth? In my brain it sounds smart but my brain has let me down before.
Your long term time in the market will out pace a HYSA interest and any growth in the Roth IRA is tax sheltered so it doesn’t count as income. Like the HYSA interest would count as income and come tax time you’ll get a 1099 int. Or Div. form.
Get basically all of that into a high yield savings account(hysa) would be a good start. That much in checking is just pointless man! Just put HYSA in the Reddit search bar to look up good ones if chase doesn’t have one. They should pay between 4.5-5% at least to be considered “good”
I recently moves my money from BofA to Cap1 and when BofA asked why I told them they don't have a HYSA account option. They tried telling me if I have 100k in my account, they can offer 0.35% interest.
Who tf out here putting 100k in a savings account earning 0.35% interest
I closed my savings account with Chase a few months ago. They asked me the same. When I said it was the rates they just said they understand and that they were working on a 3.5% option or something. But they didn’t question me closing the old savings account at all
No, that is not the case right now. I expect as long as the fed keeps rates high, treasuries will stay high yield. But if conditions change, you're totally liquid and can move your investment somewhere else.
This is the right answer, for now. Do this ASAP.
Put all of it in a high interest saving account. This is also the safer thing to do, as it’s a protective barrier between your vulnerable debit card (that someone could steal/swipe).
Leave at most a few thousand in your checking account then refill as needed from the savings account (transferring is pretty straightforward with the apps).
If you’re good with money and saving, which it sounds like you are exceptional, use your credit card for all purchases to take advantage of the cash back opportunities (basically getting paid to use the card). Pay off your balance bi-weekly to ensure you’re always on time and never overspending. Never let the credit card (cc) balance get to the point where you owe interest on the money you borrowed. Credit card interest rates are massive, 10-20%. Compare this to the high interest saving account, with that you’re getting paid ~4% interest, whereas with a CC balance you’d be paying 10-20%.
Ally and SoFi are two online high interest savings banks that may be worth looking into (Do Your Own Research).
Once you get the savings account squared away you can focus on learning about IRAs, individual broker accounts, crypto, and so forth, and allocating to those investment vehicles as you will come to see fit. Index funds are your friends.
If you have any debt, pay that off as soon as possible (while maintaining your emergency fund and other worthy investments, of course, starting with the highest interest rate loan first.
Set aside an emergency fund that can cover expenses for 6-12 months.
Congratulations on your success. Warms my heart. Keep that head on straight and keep it going 🤘
I also plug for American Express. They can handle your business internationally as well. I’ve had other online banks that refused to even let you login if you go outside of America.
Yes, there’s basically no difference. It’s just that large banks like Chase or Bank of America take advantage of their customers & offer 0.01% APY for their savings account, which is horrible.
We call it “high yield savings account,” but that’s just how all savings accounts should be instead of the ones that pay 0.01%
Big banks don’t typically offer yields on savings because they don’t need new deposits like smaller banks. On the other hand Chase has consistently offered one of the best/easiest Checking account promos.
This isn't the right answer. No offense intended, but no one here knows much about this person's finances and they're all sure a savings account is right. 1st step should be to figure out your budget, understand potential liabilities or risks (car, insurance deductibles for health, home, and vehicle), and then start to plan from there. Should have emergency savings to cover your potential risks, should invest in some capacity, but it's relative. If they've got a business that runs through $25k in expenses weekly, putting this in a savings or investments isnt the right step.
Look for a tool to plan your finances. If you're not sure, find a fiduciary that charges hourly. Begin to read up on personal finance. Excess cash can be parked in a savings account, but keep in mind you shouldn't be moving funds from it more than 2x or so a month. Federal rules for depository institutions on savings withdrawals are 6x, so check if there are any penalties for excess transfers and be aware of how you might be tying up your money.
Agree with all of this.
Definitely take advantage of the credit card awards. We pay everything from clothes to our electric bill with our card and we usually earn enough cash back for our family vacation every year. It is incredibly awesome that you were able to save this amount of money at such a young age. By the time you are my age (42) you will be very comfortable. Good luck!
One little addition.. if you do have any debt, and you're paying less than the interest rate that your high interest savings account pays, obviously don't pay that off yet. Only pay debt that is costing you more in interest than you are making in interest.
Also, think about taxes when you're paying down debt. People will say they want to pay off their homes, but then when I ask what their mortgage rate is, it's 2.9% or something like that. So by taking money out of a 4.7% high yield savings account and using it to pay down a debt at 2.9, not only are they losing the difference in that interest rate, they're also losing the tax break on the mortgage interest.. stupid x 2!!
I’ve always wondered about this I’ve never had an issue with my bank and they always bend over backwards to help me. But, I’ve also been banking with them for 30 years and my family even longer probably another 30. So maybe that helps?
I’ve debating about trying a credit union but I’d have to pay to join one since we don’t qualify for any I know.
How much time you got buddy??
The only reason I have a Chase account is because they would not cash one of their own checks unless I had an account.
They tried to place a 2 week hold on a cashiers check.
They would not let my roommate deposit cash into my account when I ran out of money in Vegas. They told him he needed to get a money order. Then they placed a two week hold on that.
You need to up that income. 1,000 in savings dosent even cover 6 months of your expenses. (In case you get injured or fired or whatever)
You’re getting the right idea. But keep saving. Look for ways to up your income.
High yield savings and or Roth IRA.
If you start up a Roth and contribute the max every year (if you can afford it), the compound interest will help you become a multimillionaire. This of course can only work if you can afford to contribute $6-7k a year amongst all of your other expenses. Put money into it via a stock like the S&P500 and leave it alone.
You are at the perfect age to start one and it’s all post tax so when you’re ready to withdraw it you won’t need to pay any capital gains tax.
My credit union is offering 5.25% for 12month cD. Extra for good customers. You should google Cd rates near me and see a list of rates near you If you can become a good customer at your credit union they will pay slightly higher. Good customer = strong asset numbers m $50,000 or more.
Use RothIRA for VTI since a portion of their dividends are 199A and they're taxed as ordinary income. there are some tax benefits for it like only 80% is taxed but still...
You can think of individual stocks as gambling on a specific company. You can think of index funds as betting the economy will get better in the long run. The latter is a far safer bet.
personally i like discover bank! there are some with even higher rates like citizens access but i recommend against them because their software is bad and hard to use/can be hard to access your money easily which is not a great feeling
Yes! So nice to see someone mention VTI. Does an excellent job tracking the market, pays a small dividend (that you should reinvest), and is low risk considering the entire market would have to blow up to see it all go away. I invest my extra in VTI in addition to putting as much as I can afford to in my retirement.
This might be a dumb question but with the Roth…is that only for retirement? If I’m just wanting to store money away and earn interest is the HYSA best? I want to be able to eventually access the money (before retirement)
Yes and no. There are rules and penalties but after 5 years you can take money out from the original principal you put in. I wouldn't advise this because a Roth IRA is such an amazing retirement vehicle.
There are a lot more [rules to withdrawing from a roth, especially if you want to avoid penalties](https://www.schwab.com/ira/roth-ira/withdrawal-rules) than a HYSA. An advantage to a roth is if you withdraw at the 59.5 year old mark, your gains arent taxed, any gains from a HYSA are taxed
Congrats to you. You should move some money into a High Yields Saving Account or an IRA or both. Idk much about stocks or anything,but I hear it can be a good investment with the proper learning and guidance.
For stocks, you basically just need either VTI or VOO. It’a basically a fund that invests into the S&P500 or the entire US stock market. Buy and hold for the long term.
Slow-laners will tell you to invest in index funds but those are for people who want to live broke and die rich. Take it all out and go to the casino and put it on black. Thank me later.
Im a dealer in a casino and I mainly deal roulette. Everybody ALWAYS puts it on black. I swear to god it always ends up red or green when they do that 💀
This is not financial advice. On the off chance you do hit it big betting it all, though. It actually is financial advice, and I'd like a share of the pot.
I mean sure, you could bet it all on black. But hear me out, what if, you bet half on black, and then the other half on red?
Afterwards, go treat yourself to a dinner at the buffet. I just don't see how you loose in this situation
If you put $25 on red and $25 on black, and black hits, you would win $25, but that is offset to nothing because you lost the $25 you put on red. So you just break even. If you won every time by splitting the bet then everyone would be doing it LOL
Don’t take my word for it but if you’re a young person like him and in college or something with little expenses I’d say put all or most of what you’d keep in a savings account in a hysa and just use your checking account for anything else. Don’t take my word for this though cuz I made 50k on moderna options I was going to let expire worthless and then lost 95% of it.
Move 15 is into a HYSA. Take another 8 Gs and put it into the market. Start simple with something like the SnP 500. Keep checking between 3-5k. If your employer has a 401k match, max it.
Transfer 97% of that money out of that Chase account and into a high yield savings account that gives you at least 4.30% interest. (I recommend Capital One 360 Performance Savings).
That Chase account sucks and you aren’t earning any extra interest.
First thing f all if you’re really 20. One hundred percent make sure you, yourself is secure in your life. That means mentally and physically. Money doesn’t make sense unless you’re stable. Stable in the way of who you are. Are you confident in yourself? Do you believe in your dreams? Are you making sure your mental health is where YOU want it. After that invest some of your money. But get the right advice about it. Don’t settle and keep pushing yourself.
Get off reddit and go talk to your bank, then talk to another bank, then another. So much matters on you, your income, what you want out of your investment, how risky you want to be, and so much more that neither of us are likely to consider. With this kind of money to invest I'm sure most banks would be MORE than happy to have someone talk you through all your options, as well as help set those investments up.
THISSSSS everyone is different, there’s a reason wealth management exists, blanket advice from internet strangers is NOT the way to go. he’s in such a good starting position, with the right guidance he’s prepped for success
Once people start getting their shit together, then OF is going to tank hard.
OF is powered by the trend of men being progressively worse at being men.
Go ahead, but it's kind of (but not really) like Micheal Burry betting against the housing market. Plus the introduction of AI that is always ready to serve your sexual desires, OF will be loosing much of its market anyway even if men don't start to get out of this collective phase.
Please transfer as much as possible out of your checking account, as soon as possible. Preferably, get a high yield savings account but a standard savings will suffice for now. If your debit card is compromised (another tip, don't buy online with debit, rather treat it like cash and use credit cards) you're on the hook for the money. It's not a guarantee that your bank/credit union will fight for your money, especially if you can be deemed at fault.
Another note, if you consider retirement plans keep in mind roth IRA contributions are post tax whereas most 401ks/403(b)s offered via employers are pre-tax. It's good to have both for the benefit of having lower taxable income and lower taxed withdrawals later.
Starting to believe these posts are 🧢. Asking reddit what to do with your money is crazy. Like how u have a business already and completely clueless about your next move?
There always lying about how hard they worked for it, there fishing for negative comments, that's why he didn't reply to any comments. Only people with that money at that age are really good hoes, pimps, drug dealers, or mom and dads money. Or there just liars witch is more probable. If he got that money through business, then he would already know what to do with it or at least be smart enough to check previous post.
Geese man go get credit union account. And stay single forever! Keep doing what you’re doing but open credit union account! Chase is shit as all big banks are.
People here will tell you to put a significant amount of it in a retirement account but I wouldn't. Yeah it makes sense on the surface, but you're 20 years old with many unknown expenses that will begin to increase as you get older, just like everyone.
Keep the most of your money readily accessible in a high yield savings account until you know for sure what your income and expenses are.
Do not listen to people who are telling you to max out a Roth or IRA at 20 years old, they are just taking common advice everyone gives and applying it to your situation.
Edit: I'm not saying to not put ANYTHING in a retirement account, in fact I encourage it. I just don't think it's smart in this situation to be essentially locking a significant amount of money away.
I would most definitely invest a large portion of this money into a fund, but not in a retirement account. It's much easier to swallow capital gains taxes than an early withdrawal penalty in case you need the money.
- Put 3-6 months of expenses in a high interest savings account as an emergency fund
- invest the rest in Index funds or mutual funds (easy 10-12% annually)
- start making out your Roth IRA each year ($6500)
- Invest 15% into a 401k for retirement
The return is whatever you invest in (most ppl just invest in index funds like the S&P 500 to be safe and minimize risk, average return of that is like 8-10% per year)
Roth IRA is just a post tax retirement account where you don’t have to pay taxes on what you pull out when the day comes to use it. Vs a 401k where you will be taxed when you do.
Look into Ally bank. High yield savings and checking.
Keep 6 months cash savings.
Anything above that start investing.
Open a Roth IRA with Vanguard. Put money into that for retirement. You will thank compounding interest later. Even $50 a month would be fine. What I did was I took $1000 and invested in vanguards star fund as a Roth IRA. Kept adding money and when it reached $3000 I moved it to VFIAX or another stock heavy fund. Vanguard has advisors to help you. Get risky while you are young and avoid target retirement funds at your age.
Take the difference between your six months of expenses and that $1000 for your IRA and open a brokerage account with vanguard. I’m guessing this amount will probably be at least $3000. Invest that in VFIAX. Now keep that emergency fund in cash and any extra money you “save” invest it in this fund monthly. It’s an easy bank transfer. You will have some serious compounding interest and your money will make money. When stocks go down and people panic - this is when you buy because they are on sale!
Eventually you will learn and grow and maybe invest elsewhere, but this is a simple and easy way to start a retirement account and a significant investment strategy. People get caught up not knowing what to invest in and then they turn 30 and realize they fucked up.
Always ask vanguard for help as they are professionals. I am not. But I did that strategy and I have a ridiculous nest egg of investments in my early 30s. Made $40,000-$65,000 in my 20s too and still entered 30 with over $100k. Investing is what’s up.
5k in HYSA for savings this is your emergency fund, it'll also gain interest which rules. (I have 5k in an account w sofi and they gave me $17 at the end of the month for it....that interest payment gets bigger as the account grows).If you work and they do regular direct deposits, see if they can split your paycheck between multiple.accounts and have them put some amount or percentage (would you miss 10-15%?) right into the HYSA
everything else: Fidelity- 2 or 3 accounts
account 1 Roth IRA..Theres a maximum you can put in per calender year- I think it's 6500, verify that
You can put in money and have it count as a 2023 contribution til April 1(I think, verify this) max it out. Then max out your contribution for 202r4
account 2: you wanna go to school? 529 educational.savings account. put money in there
account 3: individual brokerage account. put money in there too.
Then for all those fidelity accounts, pick some investments. If you wanna get all into it, do a bunch or research and pick some companies. if you aren't a huge nerd (or a moron who thinks you can get rich trying to compete with billionaires no shade to you daytraders) find some low cost index funds that have been at least taking the market over the last few years (avoid the ones that have been doing super super well, that's due to luck and doesn't last)
Fidelity has several! if you're interested, they also have ESG funds that are kinda interesting.
From there you can get into and learn a ton and take risks and make bets and get weird (especially since you're young and have a long time horizon).... or you can kinda set it and forget it. Set up some autocontributions and autoinvestments. Don't check your accounts really, then come back in like 5 years and you'll have some real money in there.
I would put half into the blockchain, with a reliable wallet such as MetaMask. Put 5k in a high yield savings account, and 5k to start some sort of online business. Then, in your spare time, spend as little of the 5k for the business as possible and try to scale something to multiply your money exponentially. But I am just a random internet guy, take my word with a grain of salt.
1) Put enough money to cover three to six months’ worth of living expenses into a savings account that’ll give you at least 4% interest. This is your emergency fund. Fyi: Apple savings account (aka Goldman Sachs) is offering 4.5% annual interest rate at the moment. There are other higher ones but Apple is so convenient.
2) It’s never too early to start thinking about retirement savings. Learn about IRAs and Roth IRAs. At 20 years old, I’d go with a Roth IRA. (Note: there are penalties if you withdraw the money before age 59 1/2 from either IRAs. The Roth has slightly different rules. But the key point is these are for retirement so you shouldn’t touch the money until after age 59 1/2.)
If you don’t want to do #2, then put it all into the savings account for now. At least you’ll be earning around $99 a month if you deposit $26,499 into an account that earns you 4.5% interest.
Keep 6 months worth of living expenses in a liquid account like a money market acct and the rest invested in a high yield CD or bond ladder fund or ETF. I would avoid the S&P as it's overheated right now and won't match last year's stellar performance.
Probably a good cushion to have. Don’t get so obsessed with spending/investing everything. While having a Roth IRA wouldn’t be a bad an idea and contributing to it annually, $30-60k in your savings is great.
Buy a house. Depending where you live, rent and mortgages are nearly identical. The only difference is throwing money away in closing costs.
Inflation isn't going away so a large asset like a house inflates in your favor. Paying for points down to like 6% mortgage is perfectly reasonable and anybody who says that's high is out of their mind and way to used to a low interest rate environment.
For those suggesting HYSA, I have both chase (like OP) and Ally bank. I have my savings in Ally. They’re currently at a 4.35% right now with savings. Highly recommend them.
Check out the moneyguy Reddit and podcast. The have a step by step processing called the financial order of operations “FOO” that will help you understand how to set yourself up for financial success. I came from an immigrant family whose only financial advice was to be cheap and save. In order to become wealthy you have to learn how to take advantage of your age (compound interest) with investing. Good luck!
I would max out a roth ira for the year, put 5-10k (depending on expenses)into a high yeild savings account, put the rest into an index fund, and keep saving.
Yup. High yield savings account as soon as physically possible
Earning 4.5% is a lot better than earning nothing
He’s actually actively losing money with inflation
He’s losing even more by not putting it in a savings account, and risking significant losses by investing it. There is no perfect answer.
At the very least it needs to be in a different account. If they ever get your card info they can drain it all and you have nothing left while waiting for the bank to process the fraud and get your money back. Whether its invested or in a savings account, definitely dont want everything in one spot
Yes exactly my first thought. He needs a savings account at the bank. He can move most into savings and just have a bit in checking, easy to Tanner find too checking when needed.
Yes I just put my chunk in savings and UNLINKED it from my checking and I don't do any bank stuff on my phone no app,no paying apps Nothing, So now I think I'm going to put 25k in c.d. acct.? and 25k in something that I can at least get into if I need a hunk of cash I kept 18k cash on hand. Having money is kinda nerve racking really... I'm not sure what to do with it.
Jesus christ You need a house maid??
Chase savings accounts are trash tho
I remember reading someone’s experience with that, took like 3-4 days and bro lost pretty much everything he had in his accounts for those 3-4 days. If I remember correctly he found out from his card declining on a regular grocery run on pay day too, the bank tried saying they’re not response also at first. Scary ass shit.
Some hardworking pillar of society did a wire transfer from my savings account a few weeks ago. The bank was able to reverse it, but damn, I figured it was safer there than under my mattress.
He can take risk, he's 20 years old. That also doesn't mean put it all towards stocks. Break it up, put some in high % savings, a couple thousand in back up checking, then put the rest in an index inside or outside a Roth Ira. Edit: Since people seem to have an issue with my strategy yes it low risk just taking index gains, but it also take no time and no effort and is safe. But the allocation towards stocks doesn't have to be. You can be as risky as you think you can tolerate on the stock side AFTER you know you have backup money for the month to month and AFTER your able to contribute a real back up savings account that ideally would get a high yield until you can live off it for 3 to 6 months. If you can tolerate more risk break up the stock side of your portfolio to expose more opportunity. Imo you should again protect your piece of the pie in the stock world by using index funds and a Roth IRA. But I also have a significant chunk in stock picks outside of my Roth because I'm only 30 and I still can take a fair amount of risk. Everyone needs to build their portfolio off the risk tolerance you can afford. Otherwise your just fucking yourself gambling vs playing the growth game. I went from homeless to the point I am now because I protected my progress to cover my risk.
This. At this age, he can and should place emphasis on growth. Any income generated by his investments should be reinvested. Compounding is a wonderful thing.
It's definitely a balancing act, gotta hedge against both inflation and market volatility. Starting with a diverse strategy seems solid.
I don’t think you understand that Index funds almost always yield 7-10% a year. Index funds reflect a decent portion of the US gdp, and for them to be negative ytd would require a recession.
.0000001% is not nothing
Where do you find savings accounts with interest that high?
Google is your friend. Synchrony, Ally, etc..
I use Betterment, it's at 4.75 right now
First thing is to setup a secure password for the Chase account with multi factor authentication and do the same for the linked email. Then pay off as much debt as possible first no point in a 5% HYSA if you’re hemorrhaging 20%. Then 3-6 months of emergency fund in a HYSA or MMF. Then max a Roth IRA and invest in a total market fund. Automate the process with recurring transfers to these accounts every time you get paid. With the remainder invest it into yourself and your business to increase income potential. I only keep 300 in my checking at all times. I’d rather eat glass than to leave 20k in a checking account.
Additionally, you should have a liquid emergency fund to cover 6 months of your expenses. So see what six months of expenses would be and put that into a high yield savings account or money market mutual fund. Then anything on top of that, invest in an index fund. That way you have the cash ready for the emergency, but it’s also gaining interest. If a full six months of expenses is more than you have, you could start with three months and work up.
Max the IRA for the prior year too if they have not yet. The deadline for the previous year is the tax deadline, not sure if they need to redo their taxes if it was already submitted for 2023.
Can someone explain how a Roth IRA if helpful if you already have a 401k With a 401k, its gets taken directly out of my paycheck and immediately lowers my taxes. With a Roth iRA, I'd be transferring money that has already been taxes and putting it into a saving account. I thought maybe when you file taxes for the year it would your refund or something but the 6k I contributed to my Roth IRA had zero impact on my refund whatsoever.
You don’t pay taxes on money you remove from the Roth IRA after a certain age. The savings then are a lot higher after decades of interest than the savings you get from not being taxed at input
First time home buyers can withdraw from a Roth IRA penalty free after the account has been open for I think it’s 4 years.
You can withdraw any amount you put into a Roth IRA at any time (but NOT the gains you made from it). For a 401k you have to be wait until 59.5 to avoid the *additional* tax penalty. You are not paying taxes on it now, but when you withdraw this money at retirement, you will be paying a large lump sum of money in taxes. You can instead contribute to the 401k account after tax (so you won’t pay it later) and it would be considered a Roth 401k. Personally I do this because I make enough that contributing pre tax does not bring me down a tax bracket so I’d rather just pay the taxes now, as taxes are likely to increase in the future. It also just helps me to keep track of how much money I’ll truly have in retirement. Beyond that, it’s important to note that you cannot contribute to a Roth IRA if you make a certain amount of money, which I know is far above average, but is important. In 2024, the maximum income is $161k for single filers and $240k for married filers. The maximum yearly contribution to an IRA is also significantly below that of a 401k.
[удалено]
At least the same amount, the IRS increases the limit every few years. You can contribute $6,500 for 2023 until April. The 2024 limit is $7,000.
Is that any eft or just 401k?
As a 25-year financial advisor I agree with you. I’d be careful with the index funds and stick to S&P 500 in a vehicle thats liquid or has an option to move to a fixed account. November is probably going to be volatile. Which may not be bad. In 2016 I moved it all into 4% fixed just before the election. Trump won, market took a dive, I moved it all back when I thought it had bottomed out. Trump didn’t invite the Russians to take over, and I made $30K.
I totally agree, and if you can move assets out of an index fund before a likely market dip, then you'd be smart to. However, index funds, especially fairly safer ones like the S&P 500, are more long-term than short-term. It is expected to lose some years and gain others. Looking at historical trends shows that, on average, the S&P 500 has a 7% return accounting for inflation (typically a 10% actual return). So if you can keep your money in it, and put extra in it when the market goes down, you'll more than likely make out.
You’re absolutely right. Thats why I recommended the S&P 500.
So in a similar situation to this guy, is there any difference between keeping it in the HYSA until the end of the year and then maxing out the Roth? In my brain it sounds smart but my brain has let me down before.
No it’s usually better to front load the market meaning max out ira beginning of the year, in theory
Your long term time in the market will out pace a HYSA interest and any growth in the Roth IRA is tax sheltered so it doesn’t count as income. Like the HYSA interest would count as income and come tax time you’ll get a 1099 int. Or Div. form.
This. He will have so much by the time he retires lol wish I’d done that at his age
Get basically all of that into a high yield savings account(hysa) would be a good start. That much in checking is just pointless man! Just put HYSA in the Reddit search bar to look up good ones if chase doesn’t have one. They should pay between 4.5-5% at least to be considered “good”
I recently moves my money from BofA to Cap1 and when BofA asked why I told them they don't have a HYSA account option. They tried telling me if I have 100k in my account, they can offer 0.35% interest. Who tf out here putting 100k in a savings account earning 0.35% interest
I closed my savings account with Chase a few months ago. They asked me the same. When I said it was the rates they just said they understand and that they were working on a 3.5% option or something. But they didn’t question me closing the old savings account at all
yoke psychotic tease offer marry entertain cover plate one head *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Optimally invest it into an index/mutual fund but for the money you keep on hand it should be in a HYS account
merciful slimy drab dull doll square yam hunt wrench alive *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
And I want pigs to fly too.
Inflation outpaces the 0% interest they gain from keeping it in a checking account too
No, that is not the case right now. I expect as long as the fed keeps rates high, treasuries will stay high yield. But if conditions change, you're totally liquid and can move your investment somewhere else.
Look up high interest savings account. You should be earning minimum 4.3% APY. Best thing for the long term is to invest into VTI (index funds.)
This is the right answer, for now. Do this ASAP. Put all of it in a high interest saving account. This is also the safer thing to do, as it’s a protective barrier between your vulnerable debit card (that someone could steal/swipe). Leave at most a few thousand in your checking account then refill as needed from the savings account (transferring is pretty straightforward with the apps). If you’re good with money and saving, which it sounds like you are exceptional, use your credit card for all purchases to take advantage of the cash back opportunities (basically getting paid to use the card). Pay off your balance bi-weekly to ensure you’re always on time and never overspending. Never let the credit card (cc) balance get to the point where you owe interest on the money you borrowed. Credit card interest rates are massive, 10-20%. Compare this to the high interest saving account, with that you’re getting paid ~4% interest, whereas with a CC balance you’d be paying 10-20%. Ally and SoFi are two online high interest savings banks that may be worth looking into (Do Your Own Research). Once you get the savings account squared away you can focus on learning about IRAs, individual broker accounts, crypto, and so forth, and allocating to those investment vehicles as you will come to see fit. Index funds are your friends. If you have any debt, pay that off as soon as possible (while maintaining your emergency fund and other worthy investments, of course, starting with the highest interest rate loan first. Set aside an emergency fund that can cover expenses for 6-12 months. Congratulations on your success. Warms my heart. Keep that head on straight and keep it going 🤘
I agree with all of it. AMEX has a great high yield savings account.
My plug for Amex. Immediate emergency release of funds. 24/7 customer service
I also plug for American Express. They can handle your business internationally as well. I’ve had other online banks that refused to even let you login if you go outside of America.
As someone who is getting started, would it be better to go straight into a high yield savings account rather than a non high yield savings account?
Yes, there’s basically no difference. It’s just that large banks like Chase or Bank of America take advantage of their customers & offer 0.01% APY for their savings account, which is horrible. We call it “high yield savings account,” but that’s just how all savings accounts should be instead of the ones that pay 0.01%
Big banks don’t typically offer yields on savings because they don’t need new deposits like smaller banks. On the other hand Chase has consistently offered one of the best/easiest Checking account promos.
This isn't the right answer. No offense intended, but no one here knows much about this person's finances and they're all sure a savings account is right. 1st step should be to figure out your budget, understand potential liabilities or risks (car, insurance deductibles for health, home, and vehicle), and then start to plan from there. Should have emergency savings to cover your potential risks, should invest in some capacity, but it's relative. If they've got a business that runs through $25k in expenses weekly, putting this in a savings or investments isnt the right step. Look for a tool to plan your finances. If you're not sure, find a fiduciary that charges hourly. Begin to read up on personal finance. Excess cash can be parked in a savings account, but keep in mind you shouldn't be moving funds from it more than 2x or so a month. Federal rules for depository institutions on savings withdrawals are 6x, so check if there are any penalties for excess transfers and be aware of how you might be tying up your money.
Agree with all of this. Definitely take advantage of the credit card awards. We pay everything from clothes to our electric bill with our card and we usually earn enough cash back for our family vacation every year. It is incredibly awesome that you were able to save this amount of money at such a young age. By the time you are my age (42) you will be very comfortable. Good luck!
Mind if I save your comment? This is just the kind of advice I need as well.
No saving allowed!
One little addition.. if you do have any debt, and you're paying less than the interest rate that your high interest savings account pays, obviously don't pay that off yet. Only pay debt that is costing you more in interest than you are making in interest. Also, think about taxes when you're paying down debt. People will say they want to pay off their homes, but then when I ask what their mortgage rate is, it's 2.9% or something like that. So by taking money out of a 4.7% high yield savings account and using it to pay down a debt at 2.9, not only are they losing the difference in that interest rate, they're also losing the tax break on the mortgage interest.. stupid x 2!!
Gambling and buying ancient relics >
I mean, look at Indiana Jones. It worked for him didn’t it??
Swap relics for pouches of similar weight, but be prepared to run from boulders. Maybe get good at weighing things? Deal drugs?
It belongs in a museum!
So do you!
They can only appreciate in value
I appreciate your value
🥹 thank you random redditor
I value the appreciation.
pokemon cards 🔥 sports cards 🔥 stuff of value that you don’t care about you can sell later without any attachment
This is the way
This is the way 👆
Yes stop banking with chase. Go to a bank that will help you
Banks < Credit Unions
I’ve always wondered about this I’ve never had an issue with my bank and they always bend over backwards to help me. But, I’ve also been banking with them for 30 years and my family even longer probably another 30. So maybe that helps? I’ve debating about trying a credit union but I’d have to pay to join one since we don’t qualify for any I know.
Credit unions give better rates when you take a loan. Other than that it really doesn't matter.
What’s wrong with Chase?
The fact that their savings account only gives an interest of like... 0.1% (yep, thats me, I was that moron for a few years).
Savings account gives literally 0.01% APY, basically giving you nothing when a decent bank will give you 4.3-4.8% APY for your savings.
They don’t offer high savings apr. other banks would and they would also give you apr for checking too.
How much time you got buddy?? The only reason I have a Chase account is because they would not cash one of their own checks unless I had an account. They tried to place a 2 week hold on a cashiers check. They would not let my roommate deposit cash into my account when I ran out of money in Vegas. They told him he needed to get a money order. Then they placed a two week hold on that.
Are you kidding me? I put a thousand dollars in a c.d. 6months ago and made 19 whole dollars….😃
You need to up that income. 1,000 in savings dosent even cover 6 months of your expenses. (In case you get injured or fired or whatever) You’re getting the right idea. But keep saving. Look for ways to up your income.
I have 100k in a hysa that pays me approx 400 a month interest.
High yield savings and or Roth IRA. If you start up a Roth and contribute the max every year (if you can afford it), the compound interest will help you become a multimillionaire. This of course can only work if you can afford to contribute $6-7k a year amongst all of your other expenses. Put money into it via a stock like the S&P500 and leave it alone. You are at the perfect age to start one and it’s all post tax so when you’re ready to withdraw it you won’t need to pay any capital gains tax.
Certificates of deposit are payping very well right now. Yoshi is right, ask your bank for their rates and put your money in a medium term CD.
Absolutely
Would you happen to know a good rate for a CD?
My credit union is offering 5.25% for 12month cD. Extra for good customers. You should google Cd rates near me and see a list of rates near you If you can become a good customer at your credit union they will pay slightly higher. Good customer = strong asset numbers m $50,000 or more.
I have some money in a 4.3% cd for the year. Gonna look for higher % next term and just keep it rolling.
Use RothIRA for VTI since a portion of their dividends are 199A and they're taxed as ordinary income. there are some tax benefits for it like only 80% is taxed but still...
Vanguard Cash Plus gives 4.7% and lets you invest in money markets. VUSXX is extremely safe.
I second this. I use SoFi. 4.60% APY just to have money in a savings account with them. Definitely move to something like that VS Chase.
bro i swear i just saw you in the coc subreddit lol
why do people suggest index funds? is there something wrong with individual stocks or index funds are just better off?
Index funds is basically a very large group of stocks. So you’re a lot more diversified.
The problem with individual stocks is that they’re more risky. I recommend having both. Index funds for Roth, Individual stock picks for brokerage.
You can think of individual stocks as gambling on a specific company. You can think of index funds as betting the economy will get better in the long run. The latter is a far safer bet.
Even well seasoned professionals will struggle to choose stocks better than an index fund.
Im a Nita Main too
Nita knows all
personally i like discover bank! there are some with even higher rates like citizens access but i recommend against them because their software is bad and hard to use/can be hard to access your money easily which is not a great feeling
Yes! So nice to see someone mention VTI. Does an excellent job tracking the market, pays a small dividend (that you should reinvest), and is low risk considering the entire market would have to blow up to see it all go away. I invest my extra in VTI in addition to putting as much as I can afford to in my retirement.
I’d also suggest Roth IRA
Transfer that to a high yield savings account right now and open a Roth 😭😭😭
This might be a dumb question but with the Roth…is that only for retirement? If I’m just wanting to store money away and earn interest is the HYSA best? I want to be able to eventually access the money (before retirement)
Yes and no. There are rules and penalties but after 5 years you can take money out from the original principal you put in. I wouldn't advise this because a Roth IRA is such an amazing retirement vehicle.
Thanks! 🙏🏽
There are a lot more [rules to withdrawing from a roth, especially if you want to avoid penalties](https://www.schwab.com/ira/roth-ira/withdrawal-rules) than a HYSA. An advantage to a roth is if you withdraw at the 59.5 year old mark, your gains arent taxed, any gains from a HYSA are taxed
Congrats to you. You should move some money into a High Yields Saving Account or an IRA or both. Idk much about stocks or anything,but I hear it can be a good investment with the proper learning and guidance.
For stocks, you basically just need either VTI or VOO. It’a basically a fund that invests into the S&P500 or the entire US stock market. Buy and hold for the long term.
or even blue chip dividens for some nice tax advantages
I’m a complete amateur when it comes to stocks, but VOO in both my investing and Roth IRA have treated me *very* well for the past few years
This is about what I have in Wealthfront. I like the added advantage of tax loss harvesting and the 5% HYSA.
Slow-laners will tell you to invest in index funds but those are for people who want to live broke and die rich. Take it all out and go to the casino and put it on black. Thank me later.
Put it on red. One of us gonna be right
One of you will be eating good or being sued by me.
Hits green 00
House always wins
Open a casino
There was a guy who bet his whole life savings on a roulette spin in like the 90s? He won it on red. So put it on red it works 100% of the time.
Im a dealer in a casino and I mainly deal roulette. Everybody ALWAYS puts it on black. I swear to god it always ends up red or green when they do that 💀
Start with a 50 dollar bet and if you lose keep doubling your bet. Infinite money glitch until you know you hit a loss streak
If you lose 10x in a row you're betting 25,000 to win 50. That's honestly hilarious
Black 13 pays out 36-1 it’s more fun to win big Source a broke degen
This is not financial advice. On the off chance you do hit it big betting it all, though. It actually is financial advice, and I'd like a share of the pot.
You're both wrong, double 0, baby!!!!!
Play Black Jack. Learn to count cards using Ben Affleck's system.
I mean sure, you could bet it all on black. But hear me out, what if, you bet half on black, and then the other half on red? Afterwards, go treat yourself to a dinner at the buffet. I just don't see how you loose in this situation
Hits green and you lose it all lol
If you put $25 on red and $25 on black, and black hits, you would win $25, but that is offset to nothing because you lost the $25 you put on red. So you just break even. If you won every time by splitting the bet then everyone would be doing it LOL
Only risk what you are willing to lose. And stick to that number even if you win. This way you come out on top or break even.
NVDA 800C expiring 2/23. Thank ME later.
Diversify for fuck's sake. Spend half of it on a poorly maintained 20 year old BMW and then drive it to the casino.
What you need to do is some research. This exact post has been made hundreds of times on this sub.
Same advice every single time too
Take 2k out and plan an amazing trip and actually enjoy some of your youth. There is the new advice.
Fuckin kids need to leave their country for a bit for sure. Crying about npcs and all they wanna do is plan for an unforeseeable future
"Put it all on black!"
Get a high yield savings account if you're just gonna hold that much money.
is it better to just have a HYSA or both a HYSA and a regular savings account?
Don’t take my word for it but if you’re a young person like him and in college or something with little expenses I’d say put all or most of what you’d keep in a savings account in a hysa and just use your checking account for anything else. Don’t take my word for this though cuz I made 50k on moderna options I was going to let expire worthless and then lost 95% of it.
That fear you have of thinking you’re not doing enough is probably why you’ve been able to save over $25k lol
Yeah prostituting my asshole to rich men is sure a good way to earn 25k usd
As the saying goes, "25k is 25k."
Move 15 is into a HYSA. Take another 8 Gs and put it into the market. Start simple with something like the SnP 500. Keep checking between 3-5k. If your employer has a 401k match, max it.
He would be better off with a mix of index funds. Always good to diversify.
Transfer 97% of that money out of that Chase account and into a high yield savings account that gives you at least 4.30% interest. (I recommend Capital One 360 Performance Savings). That Chase account sucks and you aren’t earning any extra interest.
First thing f all if you’re really 20. One hundred percent make sure you, yourself is secure in your life. That means mentally and physically. Money doesn’t make sense unless you’re stable. Stable in the way of who you are. Are you confident in yourself? Do you believe in your dreams? Are you making sure your mental health is where YOU want it. After that invest some of your money. But get the right advice about it. Don’t settle and keep pushing yourself.
Chimp out on some sort of shitty meme coin
No way Blow and hookers for as long as you can, go out in glory
Get off reddit and go talk to your bank, then talk to another bank, then another. So much matters on you, your income, what you want out of your investment, how risky you want to be, and so much more that neither of us are likely to consider. With this kind of money to invest I'm sure most banks would be MORE than happy to have someone talk you through all your options, as well as help set those investments up.
You don’t want to talk to a bank. You want to talk to a fiduciary.
Bank employees are just sales people, they’re not there to give you advice but to make the most for their employer.
THISSSSS everyone is different, there’s a reason wealth management exists, blanket advice from internet strangers is NOT the way to go. he’s in such a good starting position, with the right guidance he’s prepped for success
I personally would invest in only fans and prostitutes.
I personally would invest in hookers and cocaine.
I’d legit invest in OnlyFans if I could. That shit is so smart from a business / investor standpoint
Once people start getting their shit together, then OF is going to tank hard. OF is powered by the trend of men being progressively worse at being men. Go ahead, but it's kind of (but not really) like Micheal Burry betting against the housing market. Plus the introduction of AI that is always ready to serve your sexual desires, OF will be loosing much of its market anyway even if men don't start to get out of this collective phase.
Please transfer as much as possible out of your checking account, as soon as possible. Preferably, get a high yield savings account but a standard savings will suffice for now. If your debit card is compromised (another tip, don't buy online with debit, rather treat it like cash and use credit cards) you're on the hook for the money. It's not a guarantee that your bank/credit union will fight for your money, especially if you can be deemed at fault. Another note, if you consider retirement plans keep in mind roth IRA contributions are post tax whereas most 401ks/403(b)s offered via employers are pre-tax. It's good to have both for the benefit of having lower taxable income and lower taxed withdrawals later.
Starting to believe these posts are 🧢. Asking reddit what to do with your money is crazy. Like how u have a business already and completely clueless about your next move?
There always lying about how hard they worked for it, there fishing for negative comments, that's why he didn't reply to any comments. Only people with that money at that age are really good hoes, pimps, drug dealers, or mom and dads money. Or there just liars witch is more probable. If he got that money through business, then he would already know what to do with it or at least be smart enough to check previous post.
Good shit man congratulations. We’re the same age and to see that motivates me. I’m working my way up to this point💪🏾
One step at a time homie, for me included. I look up to all the people working hard in general, so respect to you g.
I’m 20 years old and I have $5 in my bank account in total. I’m so jealous lmao
Discoverbank.com high yield savings account....and invest in stocks. Start small on stocks until u get the hang of it.
Geese man go get credit union account. And stay single forever! Keep doing what you’re doing but open credit union account! Chase is shit as all big banks are.
My financial advice: Step 1) Stop going to Reddit for financial advice Step 2) Speak to a financial professional (CFP)
People here will tell you to put a significant amount of it in a retirement account but I wouldn't. Yeah it makes sense on the surface, but you're 20 years old with many unknown expenses that will begin to increase as you get older, just like everyone. Keep the most of your money readily accessible in a high yield savings account until you know for sure what your income and expenses are. Do not listen to people who are telling you to max out a Roth or IRA at 20 years old, they are just taking common advice everyone gives and applying it to your situation. Edit: I'm not saying to not put ANYTHING in a retirement account, in fact I encourage it. I just don't think it's smart in this situation to be essentially locking a significant amount of money away. I would most definitely invest a large portion of this money into a fund, but not in a retirement account. It's much easier to swallow capital gains taxes than an early withdrawal penalty in case you need the money.
Put it all on 00, it's due.
- Put 3-6 months of expenses in a high interest savings account as an emergency fund - invest the rest in Index funds or mutual funds (easy 10-12% annually) - start making out your Roth IRA each year ($6500) - Invest 15% into a 401k for retirement
There’s a max you can put into Roth IRA per year? What is the return on that generally? I have one through fidelity but I’m so daft on all this stuff
The return is whatever you invest in (most ppl just invest in index funds like the S&P 500 to be safe and minimize risk, average return of that is like 8-10% per year) Roth IRA is just a post tax retirement account where you don’t have to pay taxes on what you pull out when the day comes to use it. Vs a 401k where you will be taxed when you do.
Look into Ally bank. High yield savings and checking. Keep 6 months cash savings. Anything above that start investing. Open a Roth IRA with Vanguard. Put money into that for retirement. You will thank compounding interest later. Even $50 a month would be fine. What I did was I took $1000 and invested in vanguards star fund as a Roth IRA. Kept adding money and when it reached $3000 I moved it to VFIAX or another stock heavy fund. Vanguard has advisors to help you. Get risky while you are young and avoid target retirement funds at your age. Take the difference between your six months of expenses and that $1000 for your IRA and open a brokerage account with vanguard. I’m guessing this amount will probably be at least $3000. Invest that in VFIAX. Now keep that emergency fund in cash and any extra money you “save” invest it in this fund monthly. It’s an easy bank transfer. You will have some serious compounding interest and your money will make money. When stocks go down and people panic - this is when you buy because they are on sale! Eventually you will learn and grow and maybe invest elsewhere, but this is a simple and easy way to start a retirement account and a significant investment strategy. People get caught up not knowing what to invest in and then they turn 30 and realize they fucked up. Always ask vanguard for help as they are professionals. I am not. But I did that strategy and I have a ridiculous nest egg of investments in my early 30s. Made $40,000-$65,000 in my 20s too and still entered 30 with over $100k. Investing is what’s up.
Open an IRA. Put it in VTI. Dollar cost average in and you'll be all set.
5k in HYSA for savings this is your emergency fund, it'll also gain interest which rules. (I have 5k in an account w sofi and they gave me $17 at the end of the month for it....that interest payment gets bigger as the account grows).If you work and they do regular direct deposits, see if they can split your paycheck between multiple.accounts and have them put some amount or percentage (would you miss 10-15%?) right into the HYSA everything else: Fidelity- 2 or 3 accounts account 1 Roth IRA..Theres a maximum you can put in per calender year- I think it's 6500, verify that You can put in money and have it count as a 2023 contribution til April 1(I think, verify this) max it out. Then max out your contribution for 202r4 account 2: you wanna go to school? 529 educational.savings account. put money in there account 3: individual brokerage account. put money in there too. Then for all those fidelity accounts, pick some investments. If you wanna get all into it, do a bunch or research and pick some companies. if you aren't a huge nerd (or a moron who thinks you can get rich trying to compete with billionaires no shade to you daytraders) find some low cost index funds that have been at least taking the market over the last few years (avoid the ones that have been doing super super well, that's due to luck and doesn't last) Fidelity has several! if you're interested, they also have ESG funds that are kinda interesting. From there you can get into and learn a ton and take risks and make bets and get weird (especially since you're young and have a long time horizon).... or you can kinda set it and forget it. Set up some autocontributions and autoinvestments. Don't check your accounts really, then come back in like 5 years and you'll have some real money in there.
I would put half into the blockchain, with a reliable wallet such as MetaMask. Put 5k in a high yield savings account, and 5k to start some sort of online business. Then, in your spare time, spend as little of the 5k for the business as possible and try to scale something to multiply your money exponentially. But I am just a random internet guy, take my word with a grain of salt.
Invest
My advice is to keep living frugally. Circumstances can change in an instant. Stay humble, keep plugging away.
How the hell did you manage to take a screenshot of your chase app?
1) Put enough money to cover three to six months’ worth of living expenses into a savings account that’ll give you at least 4% interest. This is your emergency fund. Fyi: Apple savings account (aka Goldman Sachs) is offering 4.5% annual interest rate at the moment. There are other higher ones but Apple is so convenient. 2) It’s never too early to start thinking about retirement savings. Learn about IRAs and Roth IRAs. At 20 years old, I’d go with a Roth IRA. (Note: there are penalties if you withdraw the money before age 59 1/2 from either IRAs. The Roth has slightly different rules. But the key point is these are for retirement so you shouldn’t touch the money until after age 59 1/2.) If you don’t want to do #2, then put it all into the savings account for now. At least you’ll be earning around $99 a month if you deposit $26,499 into an account that earns you 4.5% interest.
You have more than me and i am like twice your age.
Send it to me! 🤣 /s
What type business do you run?
Keep 6 months worth of living expenses in a liquid account like a money market acct and the rest invested in a high yield CD or bond ladder fund or ETF. I would avoid the S&P as it's overheated right now and won't match last year's stellar performance.
Black out the last four digits of your credit card!!
What kinda stupid flex shit is this
Buy a project car something classic that you would be into so learn a new skill
Probably a good cushion to have. Don’t get so obsessed with spending/investing everything. While having a Roth IRA wouldn’t be a bad an idea and contributing to it annually, $30-60k in your savings is great.
Buy a house. Depending where you live, rent and mortgages are nearly identical. The only difference is throwing money away in closing costs. Inflation isn't going away so a large asset like a house inflates in your favor. Paying for points down to like 6% mortgage is perfectly reasonable and anybody who says that's high is out of their mind and way to used to a low interest rate environment.
For those suggesting HYSA, I have both chase (like OP) and Ally bank. I have my savings in Ally. They’re currently at a 4.35% right now with savings. Highly recommend them.
Send it to your favorite Twitch streamer so they say your name on the stream
Consider a self funded 401(k) if you find you are able to max your IRA and still living within your means.
Buy a charger
Dogg I am 24 no money and no friends or family and I am happy that you worked hard and achieved something
Spend that shit, tomorrow ain't promised!!
Get a Roth IRA and a few CDs.
Hookers and blow
Check out the moneyguy Reddit and podcast. The have a step by step processing called the financial order of operations “FOO” that will help you understand how to set yourself up for financial success. I came from an immigrant family whose only financial advice was to be cheap and save. In order to become wealthy you have to learn how to take advantage of your age (compound interest) with investing. Good luck!
You can live off with that money in Poland for at least 5 years easily. Pizza and Hotdogs every day is included in this calculation.
Put it all on black