Timely Investing Ideas

How might a 40+ year old worker in the United States with $5000 in saving invest better the insignificant 2 1/2% APR of banks?

Should I put all of it in a stock market Roth IRA in dividend stocks like CLM, GGN, ORC ?

or half in a Roth and half in something so I can use if needed ( without penalty) before Retirement?

Thanks for the clear background. Here’s a breakdown tailored to your situation (Age, $5,000 savings, U.S.-based, minimal interest return, considering dividend stocks like CLM, GGN, ORC in a Roth IRA):

🔑 Key Factors to Consider:

Liquidity Needs: Will you need access to this money in the next 3–5 years?

Risk Tolerance: How would you feel if this $5,000 dropped to $3,500 or lower in a downturn?

Retirement Timeline: At 43, you have ~16–24 years until typical retirement age.

Emergency Fund Status: Do you have 3–6 months of expenses saved elsewhere?

🧠 Suggested Strategy:

Given your age and modest savings base, here’s a balanced recommendation:

🔹 Step 1: Split the Funds

$2,500 → Roth IRA (long-term growth & dividends)

$2,500 → High-yield savings or money market (liquid, penalty-free)

This way:

You’re building tax-free retirement growth.

You still retain flexible cash for emergencies or short-term needs.

✅ Roth IRA Side:

If you contribute $2,500 to a Roth IRA, you can withdraw the contributions (not earnings) anytime, tax- and penalty-free. So this part is semi-liquid if needed in an emergency.

You could focus on dividend-paying but resilient stocks or ETFs, but with caution:

GGN and ORC are high-yield but high-risk.

GGN: Gold exposure with covered call income—income, but not great growth.

ORC: A mortgage REIT—can be volatile and sensitive to interest rates.

🔸 More conservative alternatives for Roth IRA:

Dividend ETFs like:

• VYM (Vanguard High Dividend Yield ETF)
• SCHD (Schwab U.S. Dividend Equity ETF)
• HDV (iShares Core High Dividend ETF)

Or add 1–2 solid blue-chip dividend stocks: PG, JNJ, KO, or MSFT for growth + modest dividends.

💰 Liquid Side:

Keep the other $2,500 in a high-yield savings account (some online banks pay 4.25%+ currently) or a money market fund:

• These are FDIC-insured, stable, and fully liquid.
• Examples: Ally, Marcus, Capital One 360, or Vanguard/Fidelity money market funds.

🔄 Reassess Annually:

As your savings grow, you can shift more into long-term investments and possibly:

• Increase Roth contributions
• Open a traditional brokerage account
• Consider I-Bonds or CDs for medium-term savings

📝 Summary Table:

Fund	Amount	Purpose	Access	Suggested Assets	DIV %	Frq
Roth IRA	$2,500	Retirement	Semi-liquid (contributions only)	VYM	2.6	Q
Roth IRA				SCHD	3.7	Q
Roth IRA				CLM	18.45	M
Roth IRA				GGN	8.1	M
Roth IRA				PG	2.64	Q
Liquid	$2,500	Emergency / Short-Term	Fully liquid

Where can I find savings or money market fund that pays 4.5% APR?

If you’re looking to park your liquid $2,500 in a high-yield savings or money-market account earning around 4.5% APR (APY), here are some top U.S.-based options right now:

🏦 High-Yield Savings Accounts (FDIC-insured):

• Axos Bank: Up to 4.66% APY
• Peak Bank: Offers 4.44% APY
• Others: EverBank, Bread Savings, TAB Bank, etc.

💳 Money-Market Accounts (FDIC-insured):

• Zynlo: 4.40% APY, $0.01 minimum
• Vio Bank: 4.31% APY, $100 minimum
• Quontic: 4.25% APY
• Discover: ~3.5% APY with debit access

🧮 Non-FDIC Money Market Funds:

• Vanguard VMFXX, VUSXX: ~4.2% SEC yield
• Not FDIC-insured, but liquid and safe

✅ How to Choose:

Option	Yield	Liquidity	Insurance	Features
Axos / Peak	4.4–4.7%	Instant	FDIC	No fees
Zynlo / Vio / Quontic	4.25–4.40%	Check/debit	FDIC	Spending tools
Vanguard MMFs	~4.2%	1-day	No	Stable income

✅ Final Recommendations:

• Need access + safety → Axos or Peak
• Need debit/check features → Zynlo or Quontic
• Comfortable with market funds → Vanguard MMFs