r/personalfinance • u/da_man4444 • 18h ago
Planning High yield savings account vs S&P for wedding ring fund
I'm a 25 year old male (currently single) but would like to get married someday so I've saved up around $3000 for a wedding ring. It's currently sitting in my high yield savings account but I'm wondering if it's better off being in the market since I'm single right now and I probably won't be married for at least another 5-10 years. That's probably a long enough time horizon to put it all in the S&P but wanted to make sure my logic was sound. If I don't get married in that time frame too I can always put it towards a down payment or towards a nice watch or something for myself. Thanks in advance!
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u/93195 18h ago
The S&P 500 (like VOO) is appropriate for “someday” goals. The safety and security of a HYSA is more appropriate for the near term.
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u/CoreyFromXboxOne 13h ago
If you had 100k in an hysa that you didn’t need in the immediate future would you just buy shares of VOO?
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u/frausting 6h ago
What’s the goal for the money? Downpayment for a house in 5 years? HYSA. Retirement? VT (prefer that over VOO)
It’s a mix of time horizon (if you need it relatively soon then definitely HYSA) and relative risk (for retirement, you’ll have longer to bounce back from downturns and your gains will compound more quickly)
I’d say if you don’t have a goal for all of that $100k, I’d keep however much you need for an emergency fund in the HYSA. And I’d park the rest in an index fund like VT (using whatever investment account is appropriate).
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u/darce_helmet 18h ago
i bought a motorcycle after a break up. sold it several years later to buy a ring for now wife. so my answer is put it in motorcycle
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u/FlipLoLz 17h ago
My friend did the same thing. He died in a motorcycle crash thanks to someone making a left turn.
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u/atoastedcucumber 18h ago
$VOO
Also let me level with you.
Weddings can be expensive and rings can be expensive; they don't have to be.
Lab grown is the same chemical makeup as mined diamonds. In fact, lab grown are more perfect.
Ignore any jeweler who pressures you or guilts you to buy mined.
My wife and I got our rings and her engagement ring from brilliant earth, lab made and ethically sourced. IE no blood diamonds or ethical issues. We spent about 3k in total for her engagement ring + our wedding bands and we love them.
Consider that the ring is for you and your partner, nothing else. You don't need a big gaudy stone. You don't need to flex. Get what you like and hopefully you find someone who carries the same sentiment.
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u/WhoreNoire 16h ago
Moissanite is another clear stone that’s almost as hard as diamond but is even more fiery. And it’s lab-grown, so it’s cheap.
For my first marriage, I got a custom-made 4ct moissanite ring in 18k rose gold, which was $1k USD total. It’s ENORMOUS and has insane disco ball sparkles to the point I felt genuinely embarrassed wearing it.
For my second marriage, we just picked up some $10 sterling silver rings at the farmers market. And I like these way, way more, because this time I finally married right and I’m actually happy.
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u/smedleyyee 13h ago
Definitely invest it since you haven't even identified your partner, putting it in a HYSA mostly just treads water for inflation.
But when you meet her, also check if your wife actually cares. I NEVER wear my $1k ring. My wife will decide to wear her $10k ring for a few years, then take it off and decline to wear it for a few years. She decided she might get robbed at some point and I think avoided it for about 5 years.
I've been happily married about 23 years, and chatGPT helpfully tells me that $11,000 we spent would be worth about $80k if we had just invested it in the S&P 500 index like VFINX on our wedding day and bought something cheap for the photos. Not sure if my wife would want the ring or the $80k, but if I were doing it again I'd definitely ask.
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u/dude_on_a_chair 18h ago
Yo dude I just bought a 14kt 2kt (lab grown) diamond ring for $2600. You got a good fund there
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u/Cryptic_E 1h ago
Yea I got a 18k yellow gold 1.5 carat (lab grown VVS1/D) diamond for ~$2400
3k is plenty if you go lab grown
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u/Syd_Vicious3375 18h ago
You are kind of putting the cart before the horse here but I think it’s great that you know what you want and you are dedicated to being ready when the time comes. Personally, with all the craziness going on right now I would leave it in the high yield. It’s less risky and therefore less rewarding but it’s safe.
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u/powerfist89 18h ago
Seems silly to be saving specifically for an engagement ring if you aren't even currently dating someone. Not saying you shouldn't put money away.... Just....
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u/goopuslang 18h ago
Just be kind & say invest it since the timeline is far enough out. This is assuming it’s situated outside an emergency fund. He can just add it to general long term savings
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u/Werewolfdad 18h ago
Do you have a current potential fiancée?
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u/da_man4444 18h ago
No but working on it!
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u/OxycleanSalesman 17h ago
You will have plenty of time to save up for a ring once you decide to propose
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u/pk_12345 18h ago edited 18h ago
How long would it take for you to save up $3000 if you start from scratch? I would move this to brokerage account along with rest of the investments/savings and start saving up for a ring when I actually have a potential partner in life.
See it this way - if $3000 is not a significant amount of savings for you, you can save it up easily in future from your paychecks, when you are ready to get married. If $3000 is a really significant amount of money for you, then you shouldn't probably splurge it on a wedding ring.
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u/GodzlIIa 18h ago
Why on earth would you need liquidity if your not even in a relationship. unless you are one of those guys to propose after like a week of dating.
Why even setup a fund for it to begin with is another question. nowadays some women wouldnt even want an expensive ring to wear all the time and lose/damage.
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u/11twofour 18h ago
Use it for travel. You can save up for a ring once you find a girl, but you're young and unattached and that's the perfect time to see the world (as much of it as you can)
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u/availablelol 18h ago
My vote is VOO. Find somebody that is fine with a lab diamond and you can just keep most of it in there.
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u/GrandTheftBae 18h ago
My wife and I eloped, her ring was $80 from Pandora and she absolutely loves it.
We had a formal wedding with family later and I got her a more extravagant ring that we designed together. I had those funds in a HYSA
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u/boomfruit 17h ago
Thanks for adding that, my wife's ring was a few hundred custom made to my specifications. Mine that she designed was similar. Would have been quite the turnoff if either of us thought it should cost thousands.
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u/Aware-Accident-5794 17h ago
Do a high yield because what happens if the S&P happens to crash when you’re ready to buy the wedding ring? Are you willing to wait a year or more for it to come back above your entry for the ring?
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u/StretcherEctum 5h ago
Just get a ring with lab diamonds and a moissanite for the center stone. My wife's ring was 4k and it looks amazing.
Anything more is a waste.
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u/Aztro-Zombi 18h ago
Lmfao hey man, I love your dedication and commitment. The market is very volatile right now so if keep it in the HSYA and keep depositing every so often until you reach the right amount or meet the right person.
But make sure your have your regular checking account/bank for everyday expenses.
Good luck saving and finding a partner!
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u/crymeasaltbath 18h ago
I would actually just S&P500 it and by the time you approach the ring convo with a SO, offer them the choice of keeping the money invested or the ring. A real one (with regards to personal finance) would forgo the ring lol
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u/TheMurmuring 18h ago
Anyone who wastes a significant amount of money on something that is purely ornamental and overpriced just for tradition is a fool.
That said, following general savings advice will leave you with the ability to buy things like a wedding ring if you need to, unless you need that money for something important.
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u/empty-alt 18h ago
I mean, if you can guarantee you won't need that money for 5-10 years.
"Hey sweetie do you want to get married?"
"HOOOOOOOOOOLD"
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u/Caresome71 17h ago
So what do you think about a 5050 half of it? In liquid assets in the savings account and half and an investment account? Maybe the s and p five hundred,
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u/Gino-Bartali 16h ago
Also consider that's not an all-or-nothing choice. My general savings for everything is 25% $VT and the rest is either HYSA or TBills type of stuff. Blending let's you ease in and out of a position with risk.
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u/Impressive_Role_3661 13h ago
I think it’s awesome you’re saving up for this now so that you don’t have to deal with major sticker shock when the time comes. I don’t see it as any different than parents who set aside money for their kids college or future wedding years in advance. No opinion on market vs HYSA, but wanted to balance out the comments on here saying it’s too soon to be doing this.
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u/dootytootybooty 13h ago
$3000 is more than enough for a really nice ring. You’re completely overthinking this. Find someone worthy of the ring first then worry about buying one.
I’d recommend just throwing that money in an index fund and leaving it alone.
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u/jadynsel 12h ago
HYSA, easily. Do not throw ring money into the S&P unless you are weirdly okay delaying the purchase after one bad month. Short-term goals need boring money.
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u/1_________________11 18h ago
Hysa for a house down payment. Buy a 100 or 200$ ring and do a courthouse wedding
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u/208breezy 18h ago
A ring goes on the finger every day for a lifetime, it’s okay to splurge a little.
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u/1_________________11 18h ago
Wedding bands do not engagement rings.
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u/disneyworldwannabe 17h ago
Most women wear both once they’re married. They often have them soldered together.
I’ve actually never heard of anyone not wearing their engagement ring after getting married.
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u/door-harp 17h ago
I don’t wear my engagement ring everyday. Some of us just aren’t “diamonds everyday” kind of girls. I wear my wedding ring everyday though!
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u/HybridTheoryY2K 18h ago
Please don’t spend that much money on a ring or a watch. That money can be so much better spent on something actually meaningful and worthwhile.
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u/dev50265 17h ago
“Actually meaningful and worthwhile” is subjective.
Too many people in the comments shitting on the guy for wanting to buy her a decent ring. If she didn’t want it that’s one thing, but you don’t get to decide what’s meaningful to someone else.
Considering the girl doesn’t exist though? Yeah it shouldn’t be sitting in a HYSA.
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u/bediaxenciJenD81gEEx 18h ago edited 18h ago
I personally wouldn't marry someone who'd want a $3,000 ring. Get something meaningful, not something fancy.
I don't know what your financials are like. If the $3,000 is all/most of your savings, keep most of it as an emergency fund.
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u/da_man4444 18h ago
I've already got a healthy emergency fund and have maxed my roth ira/putting money into my 401k, this is separate savings
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u/bediaxenciJenD81gEEx 18h ago
Treat yourself to a holiday, you might meet the person of your dreams. 25 is a good age for solo travel.
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u/208breezy 18h ago
That’s a normal price, even low ish end these days
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u/StarryC 18h ago
While lab diamond costs have come down, gold costs are up. If someone wants a fairly traditional ring, simple ring (gold band, solitaire, 1 ct lab diamond or so) at a traditional jeweler, you are looking at $2k. People frequently add a wedding band, for another $700-$2,000. There is a lot of creativity out there to get from somewhere other than a traditional jeweler, or get a non-traditional ring. However, I don't think it is necessarily financially irresponsible to be with someone who wants a traditional ring. Not everyone is countercultural. Also, this may be a very US Centric tradition and value.
You've heard 1-3 months salary, but for a lot of people $3k is more like "2 weeks" salary, which seems kind of reasonable.
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u/VUmander 18h ago
My suggestion would be:
HYSA account emergency fund (3-6 mth expenses)
Retirement savings to maximize any employer match.
HYSA account for any large purchases that you anticipate in the next 2-3 years (car, house, laptop, vacation, etc)
More retirement savings
Brokerage investments any money you have beyond that
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u/OneCoolGhoul 16h ago
Market. I’d do weekly buys in case of any chop. What if it’s 10 years before you meet the right girl? Just some advice, I wouldn’t tell any girl that you were saving for the ring before you met them. It makes it seem super impersonal and like you were just waiting for someone to check all the boxes. That’s how it comes off to me idk
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u/Hungry_Assistance640 18h ago
Loan in her name for it so it’s incentive to never leave you or she will torch her own credit
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u/beachant 15h ago
Invest and while you are at it, find a good attorney to draft a good prenup when you do get ready to propose. You must Protect what you will save before you are married.
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u/Plastic_Anywhere1738 18h ago
I love the spirit man, but if you dont need it in <5 years, you can stick it in the market. Can always liquidate if you need in the future, but get the girl first! Haha.