rougebit OP t1_jefb1of wrote on March 31, 2023 at 4:22 PM

Reply to comment by irie56 in New Grad. 22. 70k saved, I want to invest - how should I start? by rougebit

How much cash savings should I start off with in a high yield savings? Are they FDIC insured?

For the fidelity ZERO fund, is there a certain target age I should do for my ROTH? How about the backdoor roth?

irie56 t1_jefel4n wrote on March 31, 2023 at 4:45 PM

Most high yield savings accounts are FDIC insured. Treasury funds are not. I use AMEX for my HYS.

Cash is only for what you could need in case of emergency or would need quickly. That could be regular savings or in some cases you can transfer from HYS to checking in a day. Consider your lifestyle and is there a circumstance where you need several thousand bucks today or tomorrow? If not lock it away and earn money while you can.

There are a handful of zero funds. Typically with a very long investment time period you start with higher risk - mostly stock or a higher concentration on stocks. (= higher volatility) or just go S&P500

Backdoor roth is for when you earn too much to contribute to roth. You aren't there yet

rougebit OP t1_jefh7lv wrote on March 31, 2023 at 5:02 PM

Thanks, I actually looked into Marcus as a HYS and I was also able to get a refer code to get it to 4.5x for a few months then back to 3.5x.

You're actually right, there's no need to have that much money sitting in a regular savings when it could be somewhere else. I've also maxed out my IRA for the year - thanks for the tips!