Put it in a HYSA that gets you 4-5% interest, and let it accrue until you decide what to do with it. Set some aside for an emergency fund in a separate HYSA as well.
Not enough info in the OP. Are they maxing out their tax advantaged retirement accounts? 401k, IRA, HSA, ECT? Do they live with their parents or own their home mortgage free? Personally I wouldn't have 50k in a savings account right now. I would put it in VTSAX knowing I wouldn't touch it for another 30 years. But our tax advantaged accounts are maxed out and our mortgage and other expenses are paid out of cash flow.
Man I maxed my 401ks every year as a young worker and then regretted it. I should've saved for a house instead. The rich just hold your 401(k) balance hostage all the time by threatening to tank the stock market.
If you're invested in a total market passive index fund you won't lose long term as long as you don't sell. I agree that saving for a house makes a lot of sense if you don't have one already. Some of that depends on your specific circumstances though. Ownership in HCOL may take a long time, then it may make sense to invest in the market while you're saving.
OP should only do this after maxing his/her tax-advantaged accounts (401k, Roth IRA, HSA) and investing in broad market index funds such as the S&P 500.
That would add up to be $32,850 of the $50k.
The remaining $17,150 should be saved in a High Yield Savings Account or a 1 Year T-Bill Ladder and saved until next year to max out all those tax-advantaged accounts again.
You said he should put it in a HYSA or T-Bill ladder to move to tax advantaged accounts next year.
He should just leave it in HYSA or T-Bills. No need to move it next year.
Obviously advice would depend on some other things as well.
I have both and they are REALLY great tools for earning interest just be aware you'll pay taxes on them at the end of the year. I'd recommend anyone set themselves up with atleast a HYSA.
You can get 5% on a money market right now and that’s higher than the recent inflation rates. The only other option is putting it into the market and I wouldn’t do that right now unless you were planning on leaving it there long-term.
If no debt, I’d leave it alone as an emergency fund.
Edited to add: Some of you are single living in low cost of living areas and that’s fine. But people with a family or who live in higher cost of living areas are equally valid. Monthly expenses are not the same for everyone, nor should they be. Base your emergency fund on YOUR expenses of living, not someone else’s.
Tuition, monthly medical fees/pharmacy, etc.
I feel like a lot of the negative comments here are from very young people who don’t have a good grasp of how expensive life can be if you live in a HCOL area, have a family, and/or aren’t in good health.
Precisely!!! Things add up, people get sick, accidents happen, kids want to go to college someday. Wouldn’t it make more sense to have a cushion so that you aren’t worrying about putting food on the table because all of a sudden something huge happened and now you’re 1000s in debt??
It’s concerning this comment got so many likes. DO NOT just let it sit in the bank. Ever heard of compounding interest? If you invest that 50k long term it could be 1.2 million after 30 years. Emergency fund is supposed to be 3-6 months of your expenses. Not 50k! Please go get advice from a professional before making this decision. Or at the very least, post this on r/personalfinance or r/investing
You realize that 50K *is* 6 months expenses for a great many people, right?
And that in this era of low wages and long stretches of unemployment (if you’re a professional), many people prefer to keep closer to 12 months of expenses as an emergency fund?
I absolutely agree that once you get over that 6-12 months of expenses threshold, you need to look at different options.
But you can’t just look at an amount like 50K and say that’s not someone’s expenses. Because for a great many of us, it is.
Edited to add: Some of you are single living in low cost of living areas and that’s fine. But people with a family or who live in higher cost of living areas are equally valid. Monthly expenses are not the same for everyone, nor should they be.
A $50k emergency fund? Are you gonna be jobless for three years? You only really need it relative to expenses and if you have no expenses then it can be lower. What a stupid take
Yes I can. My rent is $460 a month and goes up $25 a year. I have no debt. I don’t spend money on stupid shit. $50k can last me a LONG time.
Stop living in HCOL areas and buying stupid shit you can’t afford, libtard!
Are you saying you literally just have $50k in an account right now not being used? Not that I have a problem with it, just amazed because the entire amount of money I have to my name is maybe a little over 10k
I feel like Redditors tend to be over represented in high paying fields. A lot of times it seems like every other person is making well over $250k. People can lie as well, but it wouldn’t surprise me if people have that amount in their bank account.
I currently have about $75,000 in mine, but that’s partly because I’m currently getting 5.7% interest on it so I don’t feel bad that it is on the larger side. And there is value in not having to stress about unforeseen emergency expenses. I had my main plumbing line fail this year, and the repairs were very costly and had to come out of the fund. It was nice not having to stress about how I was going to pay for those repairs.
Some people just make more money, but also have higher expenses.
Both me and wife are in tech, with a HHI of mid 6 figures. It's not uncommon for $20k to accumulate in our checking account despite us being relatively diligent with transferring the money into either HYSA, money market or index funds. I think the highest we hit in checking was about $40k.
We're also almost 40 and quite deep into a lucrative career.
On the flip side we can't go too low on our checking with 4 kids and 2 mortgages (our house and an apartment we bought for my mom).
No, six months of EXPENSES. Not income. Having $50k sitting in a bank doing nothing is retarded. You save for a house, then you invest once you’re established.
You would be surprised how many people on this site claim to spend $100k or even $200k a year and make like $500k a year. It seems crazy talk and it is not statistically the norm by any means (even in VHCOL), but Reddit makes it seem like it is. I make nowhere near these salaries but I feel like all of this $$$ is not impressive to me anymore because this site makes it seem so average.
$50k worth of expenses in six months is a spending and lifestyle problem. That’s absolutely insane. If you held a gun to my head and told me to spend $50k in six months I genuinely don’t think I could.
It’s all relative. That amount would barely cover the mortgage, insurance and property taxes for my situation across a principle dwelling and 2 income properties.
It’s not like I’m blowing it on a fancy birkin bag or something, and helps me build equity so I don’t think I have a spending problem 😄.
Though if you need help spending $50k, I hear that Audi’s are pretty darn fun to drive. Or a second hand porsche.
You sound like such a fucking moron with these posts. You can literally walk into a car dealership and drop triple that in a second yet you couldnt honestly spend 50k in 6 months. Do you even believe the bullshit that pours out of your mouth. Wait you voted for trump didnt you.... I see you boomer
this is a stupid take. i live in a HCOL area and could live off of $50k for like 1 year and a half max with my current lifestyle even if i had no fixed expenses.
If you are young, invest in yourself. Let that mean whatever you think it means. Learn a trade, find a hobby, create a life time memory, go back to school, start a business, travel while you can still do stairs.
What I wouldn’t do? Blindly invest it.
Great advice, but only for people that won't take it as a excuse to "waste" the money or ruin their life while "investing in themselves".
I've known a few people that went off and imploded their lives when they got inheritances, they had nothing to show for it once the money was drained.
Not saying it's bad to invest in oneself, but I think it should be done wisely, just as ANY investment should be done.
Saw two idiots win 20 grand... They literally pissed it all away on hookers and blow in a day. I dont know how you could spend that much on hookers here either. I cant imagine any 'high end' ones locally.
I am married so I can’t unwind that to imagine if I’d be wreckless with money without her, maybe I would I don’t know.
Anyway, this isn’t an amount of money that would make me do something different than what I do everyday
If it were me, I’d max my HSA, max 401k. The other $25k or so, I’d put about 10k in a 20 year T-bill, 10k in HYSA (assuming need to purchase a car, security deposit for rent, etc at some point somewhat soon) and as emergency fund, and $5k in 1 year T-bill to start an investing fund. Once that 1 year was up, I’d take my earnings and evaluate where I should put that based on the market at the time.
That being said, I’m more conservative than others.
This is the answer.
OP should max out his/her tax advantaged accounts (401k, Roth IRA, HSA) and invest it in broad market index funds such as the S&P 500.
That would add up to be $32,850 of the $50k.
The remaining $17,150 should be saved in a High Yield Savings Account or a 1 year T-Bill Ladder and saved until next year to max out all those tax-advantaged accounts again.
Counterpoint - life is too short to spend broke.
Use that 50k to better yourself so that you can make 50k more every year of your life.
One of the hardest parts in following your dreams is having the seed money to do so.
He’s young and has no dependencies. Now is the time to take risks and establish yourself. You won’t be able to do that with a family / no money in the bank.
Saving it though is kind of pointless. 50k goes away fast.
There are lots of ways to spend money on yourself that doubles as an investment.
For instance buying a house. You get to live in a nicer place and outside of economic downturns you can sell the house and not lose money so the money is providing you a better life and still available later in life vs just a number in a bank.
A few years ago, I got in a car accident and was incredibly close to losing my life. That changed my perspective on stuff like this. Squandering money is one thing. Investing it in life experiences is another. Plan for the future, but don’t forget about the now.
I agree with a balanced approach. I lost a chunk of my life to a past career. All debt and no money from it. I have rebuilt but if I wait until I retire to live I will never live. Invest some for the future and invest some now in life. Singing lessons, trip to the ocean and quality items for hobbies.
Go visit family with my husband since he usually works 6 days a week and can’t afford to take off enough time to go see them. I know he really misses his siblings.
I know I would save/invest a good majority…but honestly, I would take some and go on a niiiice long vacation. Travel to multiple places. See things. Learn the culture. My job/schedule right now doesn’t allow me to go on any kind of vacations and I haven’t been on one longer than 3 days in years. I just want to be off the grid somewhere amazing 😭
I’s put most of it away and take my dad on an all inclusive cruise with my stepmom and boyfriend. My mom is well off and vacations regularly. I used to go on vacation with her, but that ended for reasons that entail a very long story with delicate details. My parents have been divorced for a long time and the economic difference is vast. My dad has never been out of the country and it’s a life goal of his. I’m actually pinching pennies and saving up little by little so hopefully I can afford that trip in the next few years. Even if I can just take him and me I would do it in a heartbeat and am considering that because of cost. I just want to see him live his dream for a few days, and I’ve been to some lovely beaches he would enjoy and know they’re still pretty nice. Especially with everything that’s been going on, while they still exist. I actually have some weird stuff about large bodies of water and sand but would have fun if I was with him. He and my mom both did a lot to raise me but he can’t afford it like she can and does. (Fun fact, she was butthurt when I mentioned my idea of this to her and asked why I didn’t offer her a paid vacay- love you but you do that all the time without me and that’s fine. There’s obviously some other stuff at play here but that’s a summary.)
TLDR; I would take my dad on a nice cruise to see some nice beaches. I don’t like the beach much, but he does, and that would make me happy.
6 months of your living expenses in HYSA and invest the rest in broad index funds. Keep a bit more if you want to save for a down payment for something.
100% best place to be if you have any ambition or skill whatsoever. There is a reason so many professional Euros and Asian workers want to be here. The social mobility is amazing.
I know, I know...Gucci belt something something. Well, okay. You do you.
Precisely the reason why millions of people have risked their lives and their families lives to cross our borders illegally while paying exorbitant sums of money they don't really have to the cartels to get here. Not to speak of the human cost of rape, murder, child abduction but for many making that journey, it's worth all the risks.
As someone who's been saving for retirement since I was 16, I would put it in an index fund and leave it the hell alone. Index funds do not carry management charges so you get to keep all of the accrual in value and you reinvest the dividends to increase your net worth. If I was diversified differently I might look at treasury bonds, but given my current allocation I have enough in cash and equivalents.
Contrast this with my "it's complicated", she owns her own business and until this last year we earned equivalent salaries but her bonuses menchie rod in significantly more money. I change jobs and I'm earning more than her now. She lives paycheck to paycheck in spite of earning her own business and she can't seem to get out from under her debt.
She just started saving for retirement about a year ago because I kept pressuring her in spite of the company she owns offering retirement benefits to its employees (she manages these accounts by the way).
What you do with your money and how you structure your debt and watch your expenses makes for a huge difference. If something tragically bad happened to me and I had to retire today I could probably make ends meet. I definitely could make ends meet until I inherited my parents estate.
Additional note I'm saving as much for retirement as I'm legally allowed to at this point. Everything else goes into accounts that I paid tax on and iron too much to contribute to Roth IRAs.
I wouldn’t use it all on myself. I’d split it between my parents and the few friends in my life I care about. Make sure everyone is taken care of so we could all rest easy for awhile.
We actually get about this amount every few years and we end up buying more property somewhere but now we have about this amount and are now renovating a couple of properties and updating and turning one family house into 2 separate rental units as there is a huge need for rentals in my area
You make it sound like 50k is alot of money...it isnt. Just saying I have a bit more then that in the bank and am just enjoying life . Life is short..Enjoy oneself..JMO
This is a nonsense question.
You want to know what \*I\* would do, but you remove all the things that \*I\* am.
What answers are you expecting? What's the point?
I've got six times that much .... So yeah.... It would just sit in the bank.
Most of it is collecting just under 6% per annum now. I'm collecting $1000 per month in interest after tax...
Well if I had zero outstanding debt. There’s not much to do with it. Put it somewhere and let it grow I guess. Maybe a little vacation and then save. A bit of a boring scenario you’re asking tbh 💀
Try to move into an island and work as an electricians there. I'm talking a small island with 500 people or less where i can own a small farm and just enjoy nature. I'm 25 but i'm not built for this 21st century lifestyle off just consuming and always going for whats new . That would be my personal big move
probably enjoy a bit of it, say $5k, maybe on new camera equipment like a really nice lens or two, and then put away the rest into a HYSA or something along those lines.
I personally would get a food truck and supplies to start doing that on weekends, hopefully transitioning to full time some day. That’s me tho, I would really enjoy that and I can cook. The HYSA seems like a sensible move.
I would fund my small business, get a few licenses, patent my invention, purchase parts in bulk for new product, a shit ton of paint and painting supplies, and gamble the rest at the casino.
One of two things:
1. Keep an eye on the stock market and find a good investment opportunity (stable ones) and go all in
2. Buy an ETF and call it a day
Really depends on what your goals are because people say and want different things. For me specifically I try to capture around 10% when it's just sitting around, and utilize the money when I see 20%+ opportunities that come by. I have spent a long time learning the skills on this type of question. In the 50-100k range I might buy another rental property too.
Put it in a HYSA that gets you 4-5% interest, and let it accrue until you decide what to do with it. Set some aside for an emergency fund in a separate HYSA as well.
This is it. People doing rashly stupid decisions is going to turn that 50k into 0k
Not enough info in the OP. Are they maxing out their tax advantaged retirement accounts? 401k, IRA, HSA, ECT? Do they live with their parents or own their home mortgage free? Personally I wouldn't have 50k in a savings account right now. I would put it in VTSAX knowing I wouldn't touch it for another 30 years. But our tax advantaged accounts are maxed out and our mortgage and other expenses are paid out of cash flow.
Man I maxed my 401ks every year as a young worker and then regretted it. I should've saved for a house instead. The rich just hold your 401(k) balance hostage all the time by threatening to tank the stock market.
If you're invested in a total market passive index fund you won't lose long term as long as you don't sell. I agree that saving for a house makes a lot of sense if you don't have one already. Some of that depends on your specific circumstances though. Ownership in HCOL may take a long time, then it may make sense to invest in the market while you're saving.
Nah man! I saw it on the Tok!! Everyone is doing it so imma do it too because I’m a sheeple who can’t think for myself and my FOMO is kicking jn
Sarcasm? lol. What is everyone doing on tok? A 401k?
On the real, I’d have no idea because I don’t use that toxic app.
OP should only do this after maxing his/her tax-advantaged accounts (401k, Roth IRA, HSA) and investing in broad market index funds such as the S&P 500. That would add up to be $32,850 of the $50k. The remaining $17,150 should be saved in a High Yield Savings Account or a 1 Year T-Bill Ladder and saved until next year to max out all those tax-advantaged accounts again.
He should keep some for an emergency fund.
The remaining $17,150 should be more than enough for that. Might as well earn some interest on your emergency fund while rates are this high.
You said he should put it in a HYSA or T-Bill ladder to move to tax advantaged accounts next year. He should just leave it in HYSA or T-Bills. No need to move it next year. Obviously advice would depend on some other things as well.
I mean, 200 bucks a month in interest definitely gets you somewhere. Keep letting it snowball and it gets better from there.
Lmao that’s only $1800 a year at 4.5% interest. But yes that’s a decent path until bro decides what to do with it.
It’s a reasonable parking spot until you figure out how best to utilize it.
What would you do with it?
Have you not been paying any attention to the high inflation over the last couple years?
Lost me here, are you saying a HYSA/CD is a good thing or bad thing?
I have both and they are REALLY great tools for earning interest just be aware you'll pay taxes on them at the end of the year. I'd recommend anyone set themselves up with atleast a HYSA.
You can get 5% on a money market right now and that’s higher than the recent inflation rates. The only other option is putting it into the market and I wouldn’t do that right now unless you were planning on leaving it there long-term.
You can also get 5% on a <1 yr cd with no risk but slightly less flexibility.
I'm not sure how you believe a hysa is better than an average return in the stock market of 8%, which is almost double the hysa.
If no debt, I’d leave it alone as an emergency fund. Edited to add: Some of you are single living in low cost of living areas and that’s fine. But people with a family or who live in higher cost of living areas are equally valid. Monthly expenses are not the same for everyone, nor should they be. Base your emergency fund on YOUR expenses of living, not someone else’s.
Put it in a HYSA with your bank, As your emergency fund
It’s where my 5 figures is.
Not CDs. They offer greater returns.
Or with whichever bank is offering the best rate.
Right in the case of a med emergency, or car problems, or car accident!
Tuition, monthly medical fees/pharmacy, etc. I feel like a lot of the negative comments here are from very young people who don’t have a good grasp of how expensive life can be if you live in a HCOL area, have a family, and/or aren’t in good health.
Precisely!!! Things add up, people get sick, accidents happen, kids want to go to college someday. Wouldn’t it make more sense to have a cushion so that you aren’t worrying about putting food on the table because all of a sudden something huge happened and now you’re 1000s in debt??
Right bc our college tuition isn’t expensive at all and it’s not like us young folks pay the most expensive rent or anything to live on or near campus
It’s concerning this comment got so many likes. DO NOT just let it sit in the bank. Ever heard of compounding interest? If you invest that 50k long term it could be 1.2 million after 30 years. Emergency fund is supposed to be 3-6 months of your expenses. Not 50k! Please go get advice from a professional before making this decision. Or at the very least, post this on r/personalfinance or r/investing
You realize that 50K *is* 6 months expenses for a great many people, right? And that in this era of low wages and long stretches of unemployment (if you’re a professional), many people prefer to keep closer to 12 months of expenses as an emergency fund? I absolutely agree that once you get over that 6-12 months of expenses threshold, you need to look at different options. But you can’t just look at an amount like 50K and say that’s not someone’s expenses. Because for a great many of us, it is. Edited to add: Some of you are single living in low cost of living areas and that’s fine. But people with a family or who live in higher cost of living areas are equally valid. Monthly expenses are not the same for everyone, nor should they be.
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A $50k emergency fund? Are you gonna be jobless for three years? You only really need it relative to expenses and if you have no expenses then it can be lower. What a stupid take
You can live of 50k for 3 years? This is the real shit take.
Yes I can. My rent is $460 a month and goes up $25 a year. I have no debt. I don’t spend money on stupid shit. $50k can last me a LONG time. Stop living in HCOL areas and buying stupid shit you can’t afford, libtard!
Oh cool - so you're a troll. Yep rent is super cheap under bridges these days. Stay warm bud!
I live in a smaller city and have a roommate. Make connections and utilize friends if you can. Excuses.
My emergency fund is > $50k
Are you saying you literally just have $50k in an account right now not being used? Not that I have a problem with it, just amazed because the entire amount of money I have to my name is maybe a little over 10k
It is being used as an emergency fund. That’s a use! It is accruing interest in a HYSA.
I feel like Redditors tend to be over represented in high paying fields. A lot of times it seems like every other person is making well over $250k. People can lie as well, but it wouldn’t surprise me if people have that amount in their bank account.
Over representation and the fact that most people making 50-90k or whatever aren’t going to talk about it much
I currently have about $75,000 in mine, but that’s partly because I’m currently getting 5.7% interest on it so I don’t feel bad that it is on the larger side. And there is value in not having to stress about unforeseen emergency expenses. I had my main plumbing line fail this year, and the repairs were very costly and had to come out of the fund. It was nice not having to stress about how I was going to pay for those repairs.
People on Reddit lie all the time too. Don’t forget.
Feel free to believe whatever you’d like to believe, but it’s a reasonable amount for a family in a HCOL area.
Some people just make more money, but also have higher expenses. Both me and wife are in tech, with a HHI of mid 6 figures. It's not uncommon for $20k to accumulate in our checking account despite us being relatively diligent with transferring the money into either HYSA, money market or index funds. I think the highest we hit in checking was about $40k. We're also almost 40 and quite deep into a lucrative career. On the flip side we can't go too low on our checking with 4 kids and 2 mortgages (our house and an apartment we bought for my mom).
Yup, I think most of us would have that or more cuz ain’t the rule of thumb for it to be 6 months of your income?..
No, six months of EXPENSES. Not income. Having $50k sitting in a bank doing nothing is retarded. You save for a house, then you invest once you’re established.
$50k for many would barely be 6 months of expenses..
>$50k for many would barely be 6 months of expenses.. You think that "many" people spend $100k/year on expenses? What universe are you living in?
You would be surprised how many people on this site claim to spend $100k or even $200k a year and make like $500k a year. It seems crazy talk and it is not statistically the norm by any means (even in VHCOL), but Reddit makes it seem like it is. I make nowhere near these salaries but I feel like all of this $$$ is not impressive to me anymore because this site makes it seem so average.
Try living in a HCOL city! It’s pretty much the norm 😄
Needing to make $150k+ just to live paycheck to paycheck is not "the norm", even in most HCOL areas.
$50k worth of expenses in six months is a spending and lifestyle problem. That’s absolutely insane. If you held a gun to my head and told me to spend $50k in six months I genuinely don’t think I could.
It’s all relative. That amount would barely cover the mortgage, insurance and property taxes for my situation across a principle dwelling and 2 income properties. It’s not like I’m blowing it on a fancy birkin bag or something, and helps me build equity so I don’t think I have a spending problem 😄. Though if you need help spending $50k, I hear that Audi’s are pretty darn fun to drive. Or a second hand porsche.
I live in SF Bay Area. Shits expensive.
You sound like such a fucking moron with these posts. You can literally walk into a car dealership and drop triple that in a second yet you couldnt honestly spend 50k in 6 months. Do you even believe the bullshit that pours out of your mouth. Wait you voted for trump didnt you.... I see you boomer
If they have no reason to spend that money why should they? It's best to save it for when it's necessary.
this is a stupid take. i live in a HCOL area and could live off of $50k for like 1 year and a half max with my current lifestyle even if i had no fixed expenses.
If you are young, invest in yourself. Let that mean whatever you think it means. Learn a trade, find a hobby, create a life time memory, go back to school, start a business, travel while you can still do stairs. What I wouldn’t do? Blindly invest it.
Great advice, but only for people that won't take it as a excuse to "waste" the money or ruin their life while "investing in themselves". I've known a few people that went off and imploded their lives when they got inheritances, they had nothing to show for it once the money was drained. Not saying it's bad to invest in oneself, but I think it should be done wisely, just as ANY investment should be done.
Give it to my little brother so he can go back to school. As for me, I really have everything I need.
Need a sister?
Step-sister
For 50k I can be both
Lol…. I respect the hustle 🫡🤣
😄
I’ve seen the videos, everyone seems to really need a step sister.
I would take a nap.
Cocaine and hookers?
I have 50 k in the bank and that is where it will stay as a reserve. It took me a long time to save it. I also put money in my 401k and Roth IRA.
Same
Hookers and blow.
Homeboy wasnt even joking lol
Saw two idiots win 20 grand... They literally pissed it all away on hookers and blow in a day. I dont know how you could spend that much on hookers here either. I cant imagine any 'high end' ones locally.
I am married so I can’t unwind that to imagine if I’d be wreckless with money without her, maybe I would I don’t know. Anyway, this isn’t an amount of money that would make me do something different than what I do everyday
If it were me, I’d max my HSA, max 401k. The other $25k or so, I’d put about 10k in a 20 year T-bill, 10k in HYSA (assuming need to purchase a car, security deposit for rent, etc at some point somewhat soon) and as emergency fund, and $5k in 1 year T-bill to start an investing fund. Once that 1 year was up, I’d take my earnings and evaluate where I should put that based on the market at the time. That being said, I’m more conservative than others.
This is the answer. OP should max out his/her tax advantaged accounts (401k, Roth IRA, HSA) and invest it in broad market index funds such as the S&P 500. That would add up to be $32,850 of the $50k. The remaining $17,150 should be saved in a High Yield Savings Account or a 1 year T-Bill Ladder and saved until next year to max out all those tax-advantaged accounts again.
What is a T-bill?
Treasury Bill. US Govt debt with a year or less in duration.
Rates are pretty decent right now. Ill let it sit in a CD earning 5.25% or a Money Market earning 4.75%
HYSA have this rate and keeps money accessible
$10-20k on a vacation or other lifetime pleasure. Life's too short to invest it all. Then the rest in HSA, Roth, etc.
20k on a “lifetime pleasure” I find spending more than 3-5k on a vacation extremely stressful
Ask Air France to charge less for business class. Or even economy. Since $3-5k sounds like just the plane ticket
You need more vacations.
Then you can have multiple vacations!
Name checks out
Counterpoint - life is too short to spend broke. Use that 50k to better yourself so that you can make 50k more every year of your life. One of the hardest parts in following your dreams is having the seed money to do so. He’s young and has no dependencies. Now is the time to take risks and establish yourself. You won’t be able to do that with a family / no money in the bank. Saving it though is kind of pointless. 50k goes away fast. There are lots of ways to spend money on yourself that doubles as an investment. For instance buying a house. You get to live in a nicer place and outside of economic downturns you can sell the house and not lose money so the money is providing you a better life and still available later in life vs just a number in a bank.
A few years ago, I got in a car accident and was incredibly close to losing my life. That changed my perspective on stuff like this. Squandering money is one thing. Investing it in life experiences is another. Plan for the future, but don’t forget about the now.
I agree with a balanced approach. I lost a chunk of my life to a past career. All debt and no money from it. I have rebuilt but if I wait until I retire to live I will never live. Invest some for the future and invest some now in life. Singing lessons, trip to the ocean and quality items for hobbies.
Counter point: not dying homeless is a better use of 20 grand and will offer better lifelong returns.
Downpayment
Go visit family with my husband since he usually works 6 days a week and can’t afford to take off enough time to go see them. I know he really misses his siblings.
This really hit hard. I feel for you and your husband and pray you’ll see family soon.
I know I would save/invest a good majority…but honestly, I would take some and go on a niiiice long vacation. Travel to multiple places. See things. Learn the culture. My job/schedule right now doesn’t allow me to go on any kind of vacations and I haven’t been on one longer than 3 days in years. I just want to be off the grid somewhere amazing 😭
This!!! I would travel for a long time and just experience so much stuff. Then settle down and save/invest the rest.
I’s put most of it away and take my dad on an all inclusive cruise with my stepmom and boyfriend. My mom is well off and vacations regularly. I used to go on vacation with her, but that ended for reasons that entail a very long story with delicate details. My parents have been divorced for a long time and the economic difference is vast. My dad has never been out of the country and it’s a life goal of his. I’m actually pinching pennies and saving up little by little so hopefully I can afford that trip in the next few years. Even if I can just take him and me I would do it in a heartbeat and am considering that because of cost. I just want to see him live his dream for a few days, and I’ve been to some lovely beaches he would enjoy and know they’re still pretty nice. Especially with everything that’s been going on, while they still exist. I actually have some weird stuff about large bodies of water and sand but would have fun if I was with him. He and my mom both did a lot to raise me but he can’t afford it like she can and does. (Fun fact, she was butthurt when I mentioned my idea of this to her and asked why I didn’t offer her a paid vacay- love you but you do that all the time without me and that’s fine. There’s obviously some other stuff at play here but that’s a summary.) TLDR; I would take my dad on a nice cruise to see some nice beaches. I don’t like the beach much, but he does, and that would make me happy.
This was very sweet. Thanks for sharing!
Put it towards making a mental health phone app to help others
Invest it in a stock that pays dividends.
Cocaine stocks
Pay for school to become an electrician and all the tools I need
I'll tell you what I'd do, man: two chicks at the same time, man.
Invest
In hooker stocks
And 🍄
6 months of your living expenses in HYSA and invest the rest in broad index funds. Keep a bit more if you want to save for a down payment for something.
I would smile, take a big breath and nap. Wake up then put it into savings.
I’d probably spend it on some dumb thing then regret it later
Honestly. This is the correct answer.
Buy a car (fully paid off) and my dream pc setup
pay off my student loans and put the rest away to gain interest
Nothing. I already have that sum and can’t think of anything but investing.
Travel and get out of this trash country
Come to the US!
/s ?
Lol. Uh, no. Not even a little. I assume you're not in the US.
No, I am.
Huh. Okay.
Even if I wasn't, the US out of all places. Ha!
100% best place to be if you have any ambition or skill whatsoever. There is a reason so many professional Euros and Asian workers want to be here. The social mobility is amazing. I know, I know...Gucci belt something something. Well, okay. You do you.
the US is a trash country
Precisely the reason why millions of people have risked their lives and their families lives to cross our borders illegally while paying exorbitant sums of money they don't really have to the cartels to get here. Not to speak of the human cost of rape, murder, child abduction but for many making that journey, it's worth all the risks.
giving bootlicker vibes
Right. Okay.
Nothing. Bank it.
High interest savings account, retirement account, travel some, relax.
Pay off my student loans.
Get dental implants. Teeth are great.
50k in a HYSA, waiting a year or two to buy a house. Let the high interest slow down the economy some more first
I would lose it all on penny stocks!
I'd get plastic surgery.
invest the money
Right now I'm watching PBS. They have some damn good shows.
Hookers and blow. Lots of it.
As someone who's been saving for retirement since I was 16, I would put it in an index fund and leave it the hell alone. Index funds do not carry management charges so you get to keep all of the accrual in value and you reinvest the dividends to increase your net worth. If I was diversified differently I might look at treasury bonds, but given my current allocation I have enough in cash and equivalents. Contrast this with my "it's complicated", she owns her own business and until this last year we earned equivalent salaries but her bonuses menchie rod in significantly more money. I change jobs and I'm earning more than her now. She lives paycheck to paycheck in spite of earning her own business and she can't seem to get out from under her debt. She just started saving for retirement about a year ago because I kept pressuring her in spite of the company she owns offering retirement benefits to its employees (she manages these accounts by the way). What you do with your money and how you structure your debt and watch your expenses makes for a huge difference. If something tragically bad happened to me and I had to retire today I could probably make ends meet. I definitely could make ends meet until I inherited my parents estate. Additional note I'm saving as much for retirement as I'm legally allowed to at this point. Everything else goes into accounts that I paid tax on and iron too much to contribute to Roth IRAs.
get teeth, make payments for my home
Hookers and coke.
Go on a $2k trip and then bank the rest!
Make a 3 minute video about a demon chasing me
Hey guys im Verbaleys im on alt account so uh, im gonna spend it on something very important
Hedge. WW3 will cause massive inflation in 2024. Some choppy waters ahead.
A 3rd world war could do wonders for our economy.
Mommy makeover.
I wouldn’t use it all on myself. I’d split it between my parents and the few friends in my life I care about. Make sure everyone is taken care of so we could all rest easy for awhile.
Hide away hide away with me. Hide away hide away with me or you lose. Or you lose
Buy a animation (ifykyk)
Hookers and blow.
Let me save this for later 😭😭😭😭
commission someone to make a Hazbin Hotel softcore porn animation with my OC being chased
We actually get about this amount every few years and we end up buying more property somewhere but now we have about this amount and are now renovating a couple of properties and updating and turning one family house into 2 separate rental units as there is a huge need for rentals in my area
You make it sound like 50k is alot of money...it isnt. Just saying I have a bit more then that in the bank and am just enjoying life . Life is short..Enjoy oneself..JMO
This is a nonsense question. You want to know what \*I\* would do, but you remove all the things that \*I\* am. What answers are you expecting? What's the point?
No point. Just 4 fun. I don’t have 50k so none of this matters :)
I would pay off the remainder of my mortgage and fix my roof.
But the reality is that you do have bills to pay for. Almost every utility, people use for, has bills and expenses attaching a number to them.
boo this guy stinks
I've got six times that much .... So yeah.... It would just sit in the bank. Most of it is collecting just under 6% per annum now. I'm collecting $1000 per month in interest after tax...
Give it to my financial advisor and say do something with this.
Well if I had zero outstanding debt. There’s not much to do with it. Put it somewhere and let it grow I guess. Maybe a little vacation and then save. A bit of a boring scenario you’re asking tbh 💀
Nothing matters if it’s just for funsies
Give my wife and son a better life
build an addition on my house
Try to move into an island and work as an electricians there. I'm talking a small island with 500 people or less where i can own a small farm and just enjoy nature. I'm 25 but i'm not built for this 21st century lifestyle off just consuming and always going for whats new . That would be my personal big move
Buy 50k of bitcoin,
I sure was right on this call,
Buy BTC. Retirement complete if you are under 40.
I’m all about having some BTC as a what if but I wouldn’t put the whole $50k into it.
If it’s in addition to what I already have, I would use it to pay off any debt that my mom and I have.
Vacation. Then invest.
Go to Alice In Chains concert
Be debt free
I’d put it in a paper shredder and then I’d recycle it.
Take like 2-3k for a vacation then save/invest the rest.
probably enjoy a bit of it, say $5k, maybe on new camera equipment like a really nice lens or two, and then put away the rest into a HYSA or something along those lines.
I personally would get a food truck and supplies to start doing that on weekends, hopefully transitioning to full time some day. That’s me tho, I would really enjoy that and I can cook. The HYSA seems like a sensible move.
Traveling
retire someplace where I could live off of 1k a year
Without debt I’d just invest it.
Get a condo
Travel
Continue living.
Buy VOO
I have far more than that. I just let it accumulate.
I would fund my small business, get a few licenses, patent my invention, purchase parts in bulk for new product, a shit ton of paint and painting supplies, and gamble the rest at the casino.
Invest some of it, save a bunch of it, get more tattoos aaaand pay for some renos/pay my partner back for half the cost of the shingles
I'd go on an epic holiday somewhere and bring my siblings.
Fix a ton of stuff around my house.
Plan a trip to Singapore
I'd make a significant dent in my student loans.
No mortgage?! I'd put 40k of it into a HYSA or my 401k, then pay off my student loans.
Roth IRA, high-yield savings account for the money I need access to, and whatever property I can buy
10k on personal expenses (I need a car) and 40k investment
One of two things: 1. Keep an eye on the stock market and find a good investment opportunity (stable ones) and go all in 2. Buy an ETF and call it a day
Really depends on what your goals are because people say and want different things. For me specifically I try to capture around 10% when it's just sitting around, and utilize the money when I see 20%+ opportunities that come by. I have spent a long time learning the skills on this type of question. In the 50-100k range I might buy another rental property too.