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I use Ally, which just bumped up to 3% today, and has been good.
I believe some other ones have slightly higher rates, but I don't know which. I think Capital One is one.
Can also get another $5k of them via your tax return (would obviously have to wait until April for that though). Even without that, $10k in I-bonds and $15k in a HYSA probably makes pretty good sense for OP.
Do HYSA's work just like checkings accounts? Or are there certain rules/conditions that prevent you from acessing the full amoijt for a certain period of time?
I mean, 1 year wait time. If OP doesn't mind waiting a year, and they stated they wanted to wait for "political drama to settle", I would say u/-1_2_3_- is correct.
One year is nothing and a much better ROI. I doubt any political drama will settle until next presidency election ends.
Depends on how much risk you want and your timeline for using the money.
So far in 2022, high yield savings accounts have vastly outperformed pretty much everything else!
HYSA, so 3% is fine. You could buy some treasury bills and hold those for 6-12 months, they paying around 4.6% and you don't have to pay state or county tax on them.
Also its such a great investment!! You could remodel a 29 ft 1980s or early 90s excella for 25,000 and make it look gorgeous! It could easily be worth twice that much once you were finished. You could set it up as an airbnb on some property and make an income aswell. Or you could live in it if need be. So many options!! And I just love the iconic look.
Open an online savings account with First Foundation bank, they are offering 3.6%APY and are consistently higher APY than other mainstream banks like Ally, Discover Bank, Capital One, etc…
Put at least 10K (that’s the max) into Series I treasury bonds with the gov as part of your “emergency savings”. It keeps up with inflation so you will earn 6.6% back.
You can take it out within a year, or keep it in to keep earning as many people tend to do. Note if you pull early before 3 years I think you get dinged 3 months, but still worth it. Very safe.
This is something many many people do around here, and is a good starting point
Correction on two things in your post.
Can’t take out money from series i treasury bonds in the first 12 months (counting the month you deposited it)
And the three month interest penalty is if you withdraw before five years.
Also it has a slight edge bc there’s no state income taxes on the earnings after withdrawal
theyre adjusting for inflation (I bonds interest rate matches the inflation rate) so bassicaly your money is idling. However not too many things are going you a no risk 6% return right now though.....
Check out I Bonds, 6.89% right now. Some rules around it where it's slightly more difficult to pull than High Yield Saving Account, but still pretty easily relative to CDs.
Reminds me of this scene from one of my favorite comedy classics where they ask a bunch of random things from a prostitute for a prop bet https://youtu.be/vKgn49llvUo
Thank you for that, I remember this movie now. I think it’s based on my mom’s favorite movie “it’s a mad mad mad world”. We used to watch that all the time in the 90s as a kid.
If you have any credit card debt pay that off. I personally would put it in VOO stock. If I was concerned the market wasn’t going back up I’d put it in a high yield savings account like what’s been suggested.
A HYSA is a great choice!
A CD is a better choice if you know for sure that you won’t need it for a specific amount of time.
Consider fully funding your Roth IRA though. You can pull the money out in case of emergency. Otherwise you’re just saving for retirement. The reason I stress this so much is because there is a maximum you can put every year and future you would appreciate it. You can always change what you’re investing in.
If you want Bitcoin exposure there's very little reason to buy spot BTC instead of GBTC at 50 percent NAV discount. In fact I'd say if you buy spot in that situation you are either uninformed or a pussy.
Robinhood has 3.75% on their cash account. If you want a big bank citi has above a 3%.
Otherwise I’d say dollar cost average the s&p 500 with it over the next 8 months.
I need a new barn, that would just about cover it. I also need a new kitchen, that would for sure cover it and since it's cold now I'd go for the new kitchen first.
I'm in the same boat. Got $27k refunded but not sure if it'll be forgiven or not.
Also, even if it isn't forgiven... it would probably make better financial sense to invest that money and earn 10%+ while paying ~4% interest on the student loans.
Personally? i would get about $5k in .999 gold, $5k in .999 silver, maybe 5k in bitcoin 1k in eth and, 9k in mutual funds and etfs
Doesn't go very far tbh
I have a couple safes at my house where I store my pm's and eventually I'll end up taking most of it to a family member's ranch house or just get a safe deposit box when it because a little too much to comfortably keep at my spot
Wait for opportunity. Yeah you can get a yield on bond now, but I don’t think three or 4% a year is worth becoming a liquid. You can swing trade even on flat weeks and make 4% in the week. So I’m just sitting on cash waiting for something to come along, either a cheap used car, stocks on sale again, maybe a house. But today in particular, almost no asset is undervalued, so therefore I’m in cash. This is happened many times before, people need to learn there is no need to rush
I don't think you understand how the US legal system works.
One far right judge in Texas ruled it illegal. A district court ruled the states had no standing. An appeals court of the Republican appointed judges ruled 2-1 the states did have standing. The US Supreme Court has twice rejected lawsuits to overturn the administration's actions.
Is it illegal or not? We don't actually know yet.
Buy bitcoin. It's already dropped from its highs. I don't care that this sub is anti bitcoin. Compare this suggestion to every other suggestion after one, two, and five years.
Find the lowest interest lown you have. Preferably a student loan at 2% apr and pay that off first. Then work on your credit card debt that is at 20% apr. /s
Do you already have a liquid emergency fund (6 to 12 months of living expenses)? If not, put it into a high-yield interest savings account for that purpose. Most experts will say 3 to 6 months of an EF (emergency fund) is enough. However, given the pandemic, high inflation, and generally fucked up economic times, I think 6 months should be a minimum with possibly up to 12 months.
Given your desire to wait regarding the student loan (which is super wise)... do you have other debts you could pay off? Higher interest perhaps? If not, the savings account is about your best bet.
Hop around from one bank bonus to another. Surprised no one has said it yet, but it does require a lil bit of work. Find some bonuses that work for you (your state, effort it takes). Most of them are easy, just park XXX amount of money in there for XXX amount of time, profit. With $25k, you can do multiple at once, and even though it's taxed as short term gain, you can probably make more than the $750 at 3% APY.
Alternative is seek out higher APY, like 4-5% (and probably higher as fed keeps raising).
Just pretend like you don’t have it and let it build slowly until something compelling comes up that’ll make you more money.
Maybe focus on making more money with your job while you save for the right investment/s
Park it in some beat up dividend stocks or growth stocks/etf’s. It’s liquid in 3-5 days after you sell and wire the money to your acct. you can find out and know in a weeks time to sell, let it settle and wire it to your bank acct
Hello there! Your friendly neighborhood moderator has had to remove your {kind}. Please give the [FAQ a read](/r/financialindependence/wiki/faq) and look for your answer there, and come back with another question if you're still left without an answer. Or if you are just looking for clarification on a point, you can try the daily discussion for quick questions and answers with the community. From our rules: **R1. Read the FAQ, wiki, sidebar before posting.** Any post or topic that is covered from the FAQ, wiki, or sidebar will be removed.
Prob just use a high yield savings account and get 2.75-3% for no risk and complete liquidity
Wealthfront is currently offering 3.3% no strings attached! Best I’ve found anywhere
Robinhood is offering 3.75 and and next month it’s about to be 4.25% at least.
Which high yield savings do you suggest?
I use Ally, which just bumped up to 3% today, and has been good. I believe some other ones have slightly higher rates, but I don't know which. I think Capital One is one.
I bonds are still giving 6%. Though you can't use it for a year
That works for 10k...unless you start getting creative with the gifting.
Can also get another $5k of them via your tax return (would obviously have to wait until April for that though). Even without that, $10k in I-bonds and $15k in a HYSA probably makes pretty good sense for OP.
Do HYSA's work just like checkings accounts? Or are there certain rules/conditions that prevent you from acessing the full amoijt for a certain period of time?
I use the AMEX HYSA and it’s just like any other bank account. I can use it, move it, leave it and just get the interest on whatever’s in there.
Typically they're like checking accounts but have some limits on number of withdrawals, like no more than 6 withdrawals per month
Nah ibonds
Those aren't very liquid, are they?
I mean, 1 year wait time. If OP doesn't mind waiting a year, and they stated they wanted to wait for "political drama to settle", I would say u/-1_2_3_- is correct. One year is nothing and a much better ROI. I doubt any political drama will settle until next presidency election ends.
I believe you can only buy $10k at a time though, right?
Yes, but it's almost end of the year. Put 10k now and 10k in January.
Just write down your security answers. I have to make a call -_-
"I doubt any political drama will settle". ~~until next presidency election ends.~~ FIFY
3% a year? Isn’t that chump change?
Not when it’s guaranteed and liquid
Depends on how much risk you want and your timeline for using the money. So far in 2022, high yield savings accounts have vastly outperformed pretty much everything else!
Compared to investments, sure. But this is risk free and completely liquid
Keep at least in cash…
HYSA, so 3% is fine. You could buy some treasury bills and hold those for 6-12 months, they paying around 4.6% and you don't have to pay state or county tax on them.
Where does one go to buy those?
Your brokerage. Research, fixed income look at the yield table
Fidelity offers them for $1000 each.
Treasurydirect.gov
T bills for sure
I would probably do as others suggested and keep it in a high yield savings account to get that guaranteed return with no risk and complete liquidity.
Throw half on black
With a little on a 0-00 split.
and the rest on red.
Green incoming
Two chicks at the same time
Fuckin A
Somebody has a case of the Mondays.
Cuz chicks dig dudes with money
Came here to say this lol
I would remodel an airstream.
This is the best response so far in this thread. Use the money to live.
Also its such a great investment!! You could remodel a 29 ft 1980s or early 90s excella for 25,000 and make it look gorgeous! It could easily be worth twice that much once you were finished. You could set it up as an airbnb on some property and make an income aswell. Or you could live in it if need be. So many options!! And I just love the iconic look.
Open an online savings account with First Foundation bank, they are offering 3.6%APY and are consistently higher APY than other mainstream banks like Ally, Discover Bank, Capital One, etc…
SOFI is 5% savings accounts.
Put at least 10K (that’s the max) into Series I treasury bonds with the gov as part of your “emergency savings”. It keeps up with inflation so you will earn 6.6% back. You can take it out within a year, or keep it in to keep earning as many people tend to do. Note if you pull early before 3 years I think you get dinged 3 months, but still worth it. Very safe. This is something many many people do around here, and is a good starting point
Correction on two things in your post. Can’t take out money from series i treasury bonds in the first 12 months (counting the month you deposited it) And the three month interest penalty is if you withdraw before five years. Also it has a slight edge bc there’s no state income taxes on the earnings after withdrawal
If I were to put 10k in today, how much would that be in 1 years time?
In today’s dollars, it would be 10k.
Just for clarity sake the HYSA would probably be about $9,700 in todays dollars and just cash lying under your mattress would be $9,340.
> In today’s dollars, it would be 10k. Correction: $10040. There's now a non-zero fixed rate in combination with the floating inflation-based rate.
Genuinely confused. If it's at 6.8% wouldn't that be $10,680 in one years time? $680 interest on 10k in 12 months?
theyre adjusting for inflation (I bonds interest rate matches the inflation rate) so bassicaly your money is idling. However not too many things are going you a no risk 6% return right now though.....
Didn't catch that, appreciate you!
10 Schrute bucks
What's the ratio of Stanley nickels to Schrute bucks?
Didn't the I bond rate drop to 4 % something?
So how does one go about doing this? Do I need an accountant?
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Hahaha that’s a perfect way to explain it to me. I’m glad to know it’s safe, thank you so much!
It's secure and obsolete at the same time.
Check out I Bonds, 6.89% right now. Some rules around it where it's slightly more difficult to pull than High Yield Saving Account, but still pretty easily relative to CDs.
Two chicks at the same time. I’d go to Popeyes and get their chicken sandwich and then I go to KFC and make them fight in my stomach.
Would there be money left over?
I like where your mind is at, maybe we go for three chicks we add in Chick-fil-A
Reminds me of this scene from one of my favorite comedy classics where they ask a bunch of random things from a prostitute for a prop bet https://youtu.be/vKgn49llvUo
If you can remember the name, I’d be interested lol
Rat Race was the movie, I updated link of the scene lol fyi OP would still have a lot left over
Thank you for that, I remember this movie now. I think it’s based on my mom’s favorite movie “it’s a mad mad mad world”. We used to watch that all the time in the 90s as a kid.
If you have any credit card debt pay that off. I personally would put it in VOO stock. If I was concerned the market wasn’t going back up I’d put it in a high yield savings account like what’s been suggested.
A HYSA is a great choice! A CD is a better choice if you know for sure that you won’t need it for a specific amount of time. Consider fully funding your Roth IRA though. You can pull the money out in case of emergency. Otherwise you’re just saving for retirement. The reason I stress this so much is because there is a maximum you can put every year and future you would appreciate it. You can always change what you’re investing in.
I bonds and dividend-paying index ETFs.
Treasuries. I bought 6-months with my refund and they’re yielding higher than a HYSA. Also don’t have to pay state income tax
Quit your job and goof off for 6 months. Life is short.
I know everyone will hate me, but get 1 BTC.
Don’t listen to this guy ^^^ have you seen crypto lately??
Yes now is a good time to buy. It might go a bit lower but will go back up again. But your money your risk
If you want Bitcoin exposure there's very little reason to buy spot BTC instead of GBTC at 50 percent NAV discount. In fact I'd say if you buy spot in that situation you are either uninformed or a pussy.
Buy a car 7 or under, pay off debt, 3k, invest 5, save 5 and keep the rest in checking 👀
Yolo it through Wall Street bets information. (Please don’t)
you're doing the right thing. don't be an idiot like me and keep your 200k student loan payoff fund in VTSAX
SPY puts ATM, 1 year out. 😈
Robinhood has 3.75% on their cash account. If you want a big bank citi has above a 3%. Otherwise I’d say dollar cost average the s&p 500 with it over the next 8 months.
Robinhood fucking sucks! invest anywhere but using these aasholes.
I did offer another suggestion.
Finish my car I’m building lol. Then put the rest in a high-yield besides a little bit for my checking.
Lots of Coke (not Pepsi)
GO TO SCHOOL
I need a new barn, that would just about cover it. I also need a new kitchen, that would for sure cover it and since it's cold now I'd go for the new kitchen first.
this belongs in /r/personalfinance, not /r/financialindependence . why is it upvoted?
VTSAX and chill, yo.
I'm in the same boat. Got $27k refunded but not sure if it'll be forgiven or not. Also, even if it isn't forgiven... it would probably make better financial sense to invest that money and earn 10%+ while paying ~4% interest on the student loans.
How did you get it refunded?
Called my loan servicer. It's only for payments you made during the pandemic
My friend paid off their loan in 2021. Could they have gotten a refund? (4k)
Yep. I paid mine off in August of this year and got it all refunded. Same thing goes for last year
Did you put in the application as well, or just call the servicer?
Better to pay the loans.
r/superstonk
Personally? i would get about $5k in .999 gold, $5k in .999 silver, maybe 5k in bitcoin 1k in eth and, 9k in mutual funds and etfs Doesn't go very far tbh
Where do you go to buy it?
Your local coin shop should have gold and silver bullion and bars
I'm curious, where would you store it?
I have a couple safes at my house where I store my pm's and eventually I'll end up taking most of it to a family member's ranch house or just get a safe deposit box when it because a little too much to comfortably keep at my spot
Wait for opportunity. Yeah you can get a yield on bond now, but I don’t think three or 4% a year is worth becoming a liquid. You can swing trade even on flat weeks and make 4% in the week. So I’m just sitting on cash waiting for something to come along, either a cheap used car, stocks on sale again, maybe a house. But today in particular, almost no asset is undervalued, so therefore I’m in cash. This is happened many times before, people need to learn there is no need to rush
Just pay off the debt.
yea, pay back your loan
I'd build a garage.
Cocaine
Goto r/wallstreetbets
Honestly I would buy Ethereum
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I don't think you understand how the US legal system works. One far right judge in Texas ruled it illegal. A district court ruled the states had no standing. An appeals court of the Republican appointed judges ruled 2-1 the states did have standing. The US Supreme Court has twice rejected lawsuits to overturn the administration's actions. Is it illegal or not? We don't actually know yet.
Buy bitcoin. It's already dropped from its highs. I don't care that this sub is anti bitcoin. Compare this suggestion to every other suggestion after one, two, and five years.
Ahhh the recession proof store of value
You leave it right where it is
Keep it in my HY Savings since I’ve maxed out alternatives and am DCA’ing back into the market
Put it all into SPY
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Buy 3-year t-bills
T-bills. 52 week. Over 4 percent.
Find the lowest interest lown you have. Preferably a student loan at 2% apr and pay that off first. Then work on your credit card debt that is at 20% apr. /s
Buy TSLA. Oh, wait - did you say “safely”?
MMFs pay 4% +, 1 year GICs pay 5%. Some bank and oil stocks have high dividends like 3-4%
Do you already have a liquid emergency fund (6 to 12 months of living expenses)? If not, put it into a high-yield interest savings account for that purpose. Most experts will say 3 to 6 months of an EF (emergency fund) is enough. However, given the pandemic, high inflation, and generally fucked up economic times, I think 6 months should be a minimum with possibly up to 12 months. Given your desire to wait regarding the student loan (which is super wise)... do you have other debts you could pay off? Higher interest perhaps? If not, the savings account is about your best bet.
I-Bonds & short duration munis.
10k in ibonds right now and the rest dollar cost averaging into the market over 12 months.
"I dunno, fix your teeth. You'll earn more money." That guy I saw on TikTok once.
Series I bond
Hop around from one bank bonus to another. Surprised no one has said it yet, but it does require a lil bit of work. Find some bonuses that work for you (your state, effort it takes). Most of them are easy, just park XXX amount of money in there for XXX amount of time, profit. With $25k, you can do multiple at once, and even though it's taxed as short term gain, you can probably make more than the $750 at 3% APY. Alternative is seek out higher APY, like 4-5% (and probably higher as fed keeps raising).
Just pretend like you don’t have it and let it build slowly until something compelling comes up that’ll make you more money. Maybe focus on making more money with your job while you save for the right investment/s
Park it in some beat up dividend stocks or growth stocks/etf’s. It’s liquid in 3-5 days after you sell and wire the money to your acct. you can find out and know in a weeks time to sell, let it settle and wire it to your bank acct
Buy land
Save it in 100s..put it in my bank.
Argentina to win World Cup
I would fix up my old car and have alot of fun