Anonymous #2 3w

Already have an emergency fund

3

Anonymous OP 3w

Then buy VOO

3

Anonymous #2 3w

I plan to save enough money for a major purchase in 3 years. I know the market generally goes up but would putting 100% on VOO be smart?

1

Anonymous #3 3w

I need it in about 3 years . Rn I’m doing an 80/20 split of 80% in HYSA of 4% and 20% on VOO. But I’m worried I’m not getting the most returns

1

Anonymous OP 3w

You get a higher return on average investing in stocks, but that also comes with the risk of losing value and not having enough time to recover your losses Meanwhile cash earns a smaller fixed return since it won't decline in value (besides inflation) - you get compensated less bc there's no risk You just have to decide how much risk you wanna take and base your decision off that

1

Anonymous #3 3w

Also banks can lower HYSA rates any time, mostly when the Fed lowers them. CDs offer the fixed return I mentioned

1

Anonymous OP 3w

I’d say so.

1

Anonymous OP 3w

Yeah if you need the money in 3 years HYSA is probably safer. If you can wait about 5 or 6 years then VOO is the way to go

1