Savings vehicles for money you need in the next 0–5 years include high-yield savings accounts (HYSA), money market funds, certificates of deposit (CDs), Treasury bills, and I-bonds. Each has different tradeoffs between liquidity, yield, and safety.
Savings vehicles for money you need in the next 0–5 years include high-yield savings accounts (HYSA), money market funds, certificates of deposit (CDs), Treasury bills, and I-bonds. Each has different tradeoffs between liquidity, yield, and safety.
Retirees typically keep 1–3 years of living expenses in cash to avoid selling stocks during a downturn. Where you keep that cash matters — a HYSA at 4.5% beats a traditional bank at 0.01% by $4,500/year on $100,000.
Treasury bills bought directly at TreasuryDirect are exempt from state and local income tax. In high-tax states (CA, NY, NJ, OR), that makes a 4.3% T-bill yield equivalent to ~5% in a CD after tax.
Start with the free Retirement Readiness Score to see where you stand, then talk to a fiduciary if you want a second set of eyes. No pitch, no pressure.
Take the free assessment