I’m putting away $300 a month, my question is where to put it. savings account has basically 0 interest, there are HYSA (high yield savings account) that would give me 3-5% apy, or I already have some money in stocks that have grown consistently 25% over the last year (index funds only)

what would you guys recommend? I’m looking to buy it probably 3 years from now. that way either I’ve got a fat down payment or I can just buy it cash

thanks

  • ocean@lemmy.selfhostcat.comEnglish
    1·
    4 hours ago

    I don’t think you should touch stocks until you retire or need them in an emergency. Compound interest works by time in the market. You having stocks at 18 is awesome! If they’re smart picks and you continue to invest, in 35 years you will be able to retire comfortably. In that line of thinking you should very much open your ROTH IRA and try to max it out every year, though that’s hard. $1,000 compounded annually over 35 years with an interest rate between 5-8% is 5.5-14.8k. It’s worth not touching stocks after purchasing unless your original purchase was risky. Of course $1000 isn’t a ton of money but it’s worth treating money invested like this.

    I would find another way to come up with additional money.

    Here’s a compound interest website: https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

    If you were to invest $100 per month over 35 years it could be 113-221k. Without that time in the market it would be less than 60k.