I have about $45k cash on hand. Job looks pretty safe but I want a fall back in the event of job loss and / or recession. I have student loans of about that same amount on pause but at an 8% interest rate once they start up again.
What should I be doing with it?

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3-6 month emergency fund. Pay off high interest loans (8% is very high). Invest the rest if any.

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$10k to VOO or another index fund.
$10k to i-bonds.
$23k in HYSA.

If payments began in August, you could use the money in HYSA to pay for them, then take out the money in I-bonds next year and slowly divest the index funds if needed.

How much do you have in student loans? If less than 45k, set aside that cash in a HYSA for when interest payments come back and just take that difference and invest the rest. Otherwise I agree with previous poster, not necessarily the best long term bet to invest as 6-12 months is not a long time to invest

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@K1 and ZS1: understood; thank you! Sounds like a HYSA is the best short term solution then

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I wouldn’t pay off loans. There is a small but real chance the government cancels some of the student loan debt.

smart

If they did it would likely be income based and only a certain amount. I’ll make the strong assumption that most users on this app in the US likely would not be included given the above average and median incomes.

Curious if you can refinance to lower rate during this frozen period?

I want to focus on paying off the highest interest first (as not all is at 8%) but the debt at rates lower than inflation might be better addressed by paying minimums and putting the majority into higher yield investments

smart

Pay off loans and invest the rest(index funds), probably expand your portfolio

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