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WandererLagomorph799@lemmy.ml

nieceandtows@programming.dev

nieceandtows@lemmy.ml

Totally clueless with investing, $100k sitting in the bank earning 0.05%. How do I get started? Please advise. (lemmy.world)

submitted 2 months ago by nieceandtows@lemmy.world to c/personalfinance@lemmy.ml

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I have been putting part of my paycheck into a high yield savings account, but haven't bothered with investing it in a responsible manner partially due a fear of losing the money due to bad investments. I'm finally realizing how much potential money I've lost by letting my money stagnate. Please advise me on how to responsibly invest my money, thanks!

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[–] tee900@lemmy.world 6 points 2 months ago (1 children)

Money market funds or CDs should get above 5% right now whether thats with a bank or brokerage.

It depends on your time horizon and risk tolerance. Typically dont buy stocks based on hunches... just buy index funds and/or interest bearing vehicles. I have a small basket of stocks, a lot more index funds, and then the majority of my holdings are in a money market fund in this high interest environment. I would consider rebalancing to more index fund allocation if interest rates diminish.

[–] nieceandtows@lemmy.world 2 points 2 months ago (1 children)

Thank you, I'll look into money market and CDs

[–] tee900@lemmy.world 2 points 2 months ago

Its important to be taking advantage of tax deferred savings btw. I just assumed these funds are all taxable savings and that you are already contributing to your retirement and health savings.

Simply investing your savings without putting money into iras/401ks/hsas would be a huge mistake in the long term.