Do NOT put money into a high yield savings account
until you know these three things
I’m Tyler I’m a former financial advisor and portfolio manager
how I make financial content for free so that you don’t have to pay for it
number one interest rates will go down
the Fed has just signalled that they’re most likely going to cut rates
as of this year once inflation is completely cooled
bye bye inflation
bye bye 5% return on your high yield savings account
No. 2 most of these “banks”
they’ve only been in existence for a couple of years
taking advantage of this high interest rate environment
no history of stability no history of consistent management
and no history of really even knowing where the heck they are or who they are
No.3 by putting money into a dividend fund instead
like Schwab’s SCHD you would get a relatively stable 3 to 4% return annually
and you would still own the underlying assets
unlike in your high yield savings account where all you own is depreciating cash
and if any of this is helpful
like and follow
and I’ll keep trying to get you one step closer to where you need to be