Where are you storing accumulated capital until next investment

[Darius Tracy]

Me and my wife practice many of the principles that we have learned along the way through the help of BP money podcast, countless books, and other resources such as a high savings rate and living a lifestyle well below what we bring in. Unfortunately what has been eating at me lately despite all this is the unbelievably low interest rate that our savings at USAA offers. I am aware of Ally and other high yield savings opportunities and was about to move my funds to one of those as accessibIlty of funds is a great concern to my wIfe but before I do so I was curious as to any other things that anyone might recommend that has been successful at earning a decent yield while accumulating capital until the next investment opportunity. I even entertained putting the money into some Vanguard index funds (VTSAX) as to get paid some dividends. I just don’t like the idea of my money not working for me at any particular point so I am open to hearing any suggestions or points of views on the matter. Thanks

[Frank S.]

Originally posted by @Darius Tracy:

Me and my wife practice many of the principles that we have learned along the way through the help of BP money podcast, countless books, and other resources such as a high savings rate and living a lifestyle well below what we bring in. Unfortunately what has been eating at me lately despite all this is the unbelievably low interest rate that our savings at USAA offers. I am aware of Ally and other high yield savings opportunities and was about to move my funds to one of those as accessibIlty of funds is a great concern to my wIfe but before I do so I was curious as to any other things that anyone might recommend that has been successful at earning a decent yield while accumulating capital until the next investment opportunity. I even entertained putting the money into some Vanguard index funds (VTSAX) as to get paid some dividends. I just don’t like the idea of my money not working for me at any particular point so I am open to hearing any suggestions or points of views on the matter. Thanks

 Be careful with the BP podcasts financial advice given. There are tons of dangerous proposals. 

Don't invest anything in stocks that you will need in the next 10 years.  If so, use low cost broadly diversified index funds that closely track their benchmarks.  Vanguard has "target funds". Stocks are a long term investment. 

Robo advisors could benefit TLH, but their fees may be higher than Vanguard. I don't use them. 

I use high yield savings like First Advantage Bank, Insight, Mango, etc. Those are >4.5%.  Google these options,  there are many ways to beat inflation.

If you're planning on a purchase in the short term,  use online savings accounts.  You will land in the 2ish %.

Read Dr. Of Credit blog, among others.

Check the Boggleheads blog. 

Hire a fee- only financial advisor, if needed. 

Best of luck 

Frank