Where do you put extra savings?

[fortnightlily]

Let's say you're maxed out on retirement savings and fully funded for anything that you want to keep liquid, i.e. emergency fund, other near-term plans and projects. Where do you put your extra cash? Are you risk averse and keep a lot of it in high-yield savings accounts, CDs, or Treasury bonds? Do you invest it in stocks and bonds (index funds and ETFs or individual stocks)? Invest in other ways -- like real estate, in a business, in crypto, in hard assets like art? Or do you spend it?

[sadlebred]

Either HYSA or CDs if I won't need it for at least 6 months. Longer cds if I won't need it for longer. I-Bonds for savings for several years down the road.

I am in no way fully maxed out on retirement vehicles, but "cash" needs to be somewhere you can reach it quickly. Investments are not the same as "cash."

[fortnightlily]

Apr 23, 2023 16:33:42 GMT -5 sadlebred said:

Either HYSA or CDs if I won't need it for at least 6 months. Longer cds if I won't need it for longer. I-Bonds for savings for several years down the road.

I am in no way fully maxed out on retirement vehicles, but "cash" needs to be somewhere you can reach it quickly. Investments are not the same as "cash."

Well, I mean extra cash as in it is currently cash but likely could be better put to work.

[mccallister84]

In theory an index fund. In reality we let it build up in capital one high interest savings account and then buy in to the index fund every other year or so.

[steamboat185]

We do a mix of index funds and high yield options. The high yield non stock options are newer for us (last 2 years) but we’ve done bonds and cds. We never looked at them before because the rates were so poor.

[RockNVoll]

We regularly move extra cash to our financial advisors to invest in stocks for us. Equity investments are what has allowed us to build wealth over many years.

[goldengirlz]

We do a monthly deposit to our Vanguard account and invest it in one of five ETFs.

[Poppy]

Index funds at Vanguard.

[fryjack2]

Apr 23, 2023 19:16:00 GMT -5 RockNVoll said:

We regularly move extra cash to our financial advisors to invest in stocks for us. Equity investments are what has allowed us to build wealth over many years.

I think you are local to me. Unless you have moved. This is th year I actually start investing outside of retirement accounts. I’ve been saying I will for years and money is just sitting there.

Can you DM your financial advisor and details about your experience working with them?

[ohgillian]

On a larger scale - we bought a 2nd house, mainly because we wanted to, but also it does diversify our portfolio.

On a smaller scale I just this week bought brokered CDs for the first time.

[aspentosh]

Assuming all the things you laid out- fully funded retirement options, good e-fund, and our next home project is funded with liquid savings, we invest.

[vmars]

We put it in our brokerage account.

[memenee]

ohgillian

I keep seeing brokered cds thru fidelity where I have my accounts. The rates all look good 5.15 and up for all different time frames. But I’ve never done brokered cds. What does marginable
Mean? And call protected? Are these things I need to worry about or just buy the cd and wait? Also is there anything I need to do at maturity? Thank you in advance!

[definitelyO]

Ours is in a brokerage account