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DestinationForever OP t1_j2budlo wrote

Reply to comment by efla in I’m having trouble getting started with what I should do with my money. Have I saved enough? What direction do I need to take next? by DestinationForever

What makes Roth any different from a HYSA besides withdrawal repercussions before the age of 59? Also, with HYSA can you withdraw any amount anytime?

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efla t1_j2bvioc wrote

An IRA is an investment account, a HYSA is a savings account. You’d be hard pressed to even meet inflation in a HYSA, let alone make any real earnings. You put your emergency fund in a HYSA because you don’t want it to be invested. The goal of an emergency fund is not to make money, but to have access to a few month’s expenses in case of an emergency like losing your job. You do want to invest your retirement savings, as you can make a good chunk of money by letting it grow in the market for a few decades. Having that money sit in a HYSA is a ton of missed potential.

You can withdraw from a HYSA any time. It’s just a decent savings account at a bank or credit union.

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