[USER]

What is your opinion about having approximately 80% of your savings in HYSA or other Money Markets funds (that pay on average 4%-5%)?

With rising interest rates and economic uncertainty, many people are seeking safe places to store their savings. High-Yield Savings Accounts (HYSA) and Money Market funds are often considered secure options that offer better returns than traditional savings accounts.

However, is it wise to allocate such a large percentage of your savings—around 80%—to these low-risk, but relatively lower-return vehicles?

Should a more diversified approach be considered, or is this a solid strategy for balancing risk and liquidity?

I’d love to hear your opinions and experiences with these options.

[John]

they said 80% of their savings…. which is a terrible idea and likely won’t even keep up with inflation. Get into the equity market and stop being so scared!

[Steve]

Savings is letting your money work for someone else. Buy assets that appreciate, outperform inflation, and create wealth.

[John]

80% is Sooooooo conservative, that you will very likely lose a LOT of money in the long term.

[Marin]

Depends on your goals. I once saw someone on a talk show say he had everything in 5% CDs, he said it worked for him because he had a whoooooole lot of them ha

[Sean]

Not enough information to answer your question.
I keep 100% of my cash in hysa or money market funds, and would recommend that.

I would only recommend keeping about 3-6 months of expenses in cash as an emergency fund.

Aside from that keep more cash if you are saving up for a large purchase in the short term or at or near retirement.

[Mark]

100% of my cash is in money market fund. EF and short term savings. The rest is invested for the long term

[Ben]

That’s fine for actual savings like emergency fund, down payment, etc…

[Author]

Posts