[USER]

hivemind- i’ve been leveraging the reliable 5%+ interest in high yield savings accounts to keep most of my nest savings.. with the feds cuttings rates im wondering if I should jigger the allocations. thoughts?

high yield accounts ~250K
roboadvisor ~130K
apple stock ~230K

adding this is the whole of my assets and im single mom of 4 that doesnt receive any $ support from ex.

[Dave]

While AAPL has definitely outperformed the market over the last five years, you’ve got nearly 40% of your total assets in a single stock — you would really benefit from some diversification.

Also, what is the roboadvisor investing you in, and what kinds of fees is it charging?

[Joel]

I think you probably have too much in cash; but I can’t know that for certain without knowing how reliable your income happens to be.

Over the long-run, bank savings accounts will lose money to inflation. Plus, you are not really investing.

Had you held $250K in VOO for all of 2024, YTD, it would have grown to $313,643.53 while a 5% APY bank account would get you $262,500. That’s an additional $51,000.

Yes, I know this would have been risky; but it’s far less risky than holding $230K in apple stock.

With that said, you haven’t provided enough information to get really actionable recommendations.

There’s just not enough information here, except that it looks like you have too much in cash and too much in an individual stock.

[Barry]

On the positive, you have $610k to reinvest, and that’s great. But it’s likely that you’ll want to invest much of that cash and diversify your equity investments, depending on your goals.

My first question is: What is the purpose of this money? Are you hoping to keep it invested 30+ years until retirement?

Use it to pay college expenses in 10 years?

Use it as a downpayment on a house in 5 years? The time horizon matters.

If you’re in for the long haul, I’d invest it 50% total US stock market, 50% small cap value, getting as much as possible into tax-sheltered accounts (Roth, Traditional IRA).

Don’t pull it out for any reason; just rebalance as needed to keep that 50-50 allocation.

But whatever you do, you will want to set your strategy and then work it. What you don’t want to do is try to outguess the market.

Consider reading one of the common ChooseFI books — The Simple Path to Wealth, I Will Teach You to Be Rich, Millionaire Teacher, or the equivalent — to gain a framework for how to set your asset allocation.

There are many website you can use for free to get the same information.

[Frank]

Savings accounts are not long term investments and should not be used that way. Assuming most of this is for the long term, I would reduce that holding to one years expenses and invest the rest in index funds. No single stocks and no robothingies.

Put it all at one brokerage and put the cash in a money market.

And stop trying to market time either stock markets or interest rates.

No more randomly “jiggering” allocations on a whim.

[J.C.]

The long term historic returns of the S&P500 is in the neighborhood of 8%.

I’d move that cash to an index or ETF fund of the S&P500 assuming you have a decade or more before you need to tap that money.

And a brokerage house (taxable account) is just fine.

[Micah]

I would not have such a large position in any single stock. I would consider cashing in that Apple for a low cost broad based index fund or ETF.

[Author]

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