Up until now, I’ve just been saving an emergency fund in a HYSA. I’m getting to the point where I’d like to put excess savings into the market, and am looking at something like the VOO ETF. It seems things are essentially at an ATH right now, and there are a lot of big political things happening at the same time.
Would it be ill advised to buy into VOO right now? I could hold this in my HYSA but at the same time, I’m not needing this money for a while and long term I would think the market will continue to rise.
I know there was news a couple days ago about Berkshire Hathaway selling their S&P 500 ETFs, but this made up ~0.01% of their total portfolio.
The S&P500 is almost always at an ATH, for the record. Buy as soon as you have the money and buy often. The market is irrational, and doesn’t always reflect reality. Efficient market hypothesis says that all this “scary risk” is already “priced-in” instantly. If there’s money to be made off this uncertainty, it’s been made. Anything else is just gambling.
This sort of stuff is scariest when you’re just getting started, but remember that you’re probably looking at a multi-decade timespan. It doesn’t matter what happens next week in the grand scheme of things.
This line of thinking is why Boggle (?) is a genius. Just choose large low fee index funds and time in the market always wins. Don’t try to play the game.
I mostly put mine in VT, VTI, QQQ, and SPY. Idk how SPY and VOO compare
Definitely. I have my retirement in a large cap, mid/small cap, international and bonds. My rIRA is a low cost Vanguard age based portfolio and my 529 is mostly large cap. I still have quite the horizon on those accounts so I don’t mind being a bit risky, but for this ‘savings’ account I should be a bit more safe. I think I got my answer here. I’ll hold off on VOO and just use HYSA as I’ll probably want to try making a down payment on a house in the next 5 ish years.
Thanks for sharing! That sounds like a smart plan.
Reminds me when I had a bit of cash I was keeping it in a SCHWAB HYSA, I forget what it was called. You had to buy some “stock” of theirs and it paid an average 5%
What HYSA are you using?
Currently Wealthfront at 4%
Great advise, thank you.