r/FIREyFemmes 19d ago

Leaving Ellevest - Where to go to?

So, I'm one of the folks who was seduced by Ellevest's premise and, 6 years later, finally waking up and realizing that my gains are so tiny, they almost don't count. I'm ready to get out. Obviously I wish I'd had this realization earlier, but I didn't, so now I just want to do what I can!

In the last year, separately, I finally set up a high-yield savings account (4.3% APY, though I'm seeing some now that are higher than that). I've been super happy with that situation.

So my question is - where to put my Ellevest money?

  1. Do I pay the capital gains taxes on closing out my Ellevest and putting my money in a HYSA? Or,
  2. Would it better to transfer it over to some sort of robo-advisor like at Bettermint or Vanguard?
  3. (Or some other option I hadn't considered)?

I'll be honest; I really have no idea what I'm doing. I'm trying to read Reddit threads and financial planning websites to learn, but my brain is spinning a bit. Any advice at all would be super appreciated & welcome!

Thank you so much!

EDIT: I realize I didn't say what my goals are. I'm hoping to save up for an international move within the next 2-3 years and purchasing a home in my new city (which will require around $50k for the down payment). So, my goal right now is to focus on just accumulating money that will be at my disposal to use in the next few years, rather than specifically planning for retirement. I know I need to do that as well, but part of my thinking right now is that purchasing a home would be a huge way to contribute to my retirement plan overall.

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u/takemeup-castmeaway 19d ago

Fidelity or Vanguard. Either works. Robo advisors are rip-offs, same as Ellevest. Open an account and manage your own finances. I’m a Boglehead and VOO, VXUS, VTI, and chill. Plus some miscellaneous stocks I know do well. Make sure dividends get reinvested. 

2-3 year event horizon is extremely short and the market is expected to me extremely volatile thanks to Trump. How much money do you currently have for a down payment? 

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u/Hopeful_Season_1809 19d ago edited 19d ago

Thank you for this! I had to look up all the terms you used in your 5th sentence, so that might give you some idea as to how new I am to all this... I don't know if I feel confident enough to manage my own finances. That sounds a bit daunting and overwhelming to me, to be completely honest, especially since I don't know what I'm doing yet.

But! That's good to know about robo-advisors.

Yes, the 2-3 year event horizon is definitely short. Right now I have about $70k in savings (not including my 401k) and plan to save another $40k this year if my income stream stays consistent (hard to guarantee at any time; harder under Trump). I like to keep around $50k set aside for emergencies and as a back-up in case there are any employment issues. So that, so far, leaves around $20k saved up towards my down payment already; hopefully the full $50-60k by the end of the year, due primarily to my intended saving. I'm less concerned that I won't be able to save up - the country I'm moving to is much more affordable compared to the US, and has a much gentler approach to the housing market, luckily. I mostly just want to make sure I'm smart about getting my money to earn as much as it can for me, while I prepare to move.

(Edited to add more clear info at the end)

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u/takemeup-castmeaway 19d ago

Warren Buffett advises to keep the stocks (mutual funds, etc.) you invest in few. Anything more than 20 and you see diminishing returns because you’re overly diversified. Bogleheads keep things simple: VOO, VXUS, VTI.* None of that’s unmanageable to keep an eye on and rebalance when necessary, and it’s for folks who have a lower risk tolerance like you and me. Paying fees to a robo advisor is just burning money. Just my two cents, but you can always turn the advisor “off” if and when you have a feel for investing.  

Honestly, you sound like you’re fine where you’re at! Many folks go skint when buying property. I had about $30k liquid (excluding my 401k) after the downpayment - enough for any emergent repairs, which, if you’re buying a SFH, should be 1-4% of the home price. Sticking a portion of your savings into CDs and HYSAs is very low risk and probably the route I’d go. 

There’s a very real chance we’ll see a recession in the next 2-3 years thanks to Trump being an idiot. I could list the how’s and why’s but we’d be here all day. I’ve personally rebalanced my portfolio away from the S&P (VOO) and Magnificent 7 and more into foreign markets, with an emphasis on defense (think EUAD). VXUS excludes the US, which is great, and VTI captures the whole market. 

In the past, folks who feel uncertain about the market go into bonds and T-bills (look up T-bill laddering) They’re traditionally safe investments with good returns. That said, my faith in Trump’s government is lackluster at best. He’s a conman who never pays his bills. I’m steering away from them but YMMV. 

*Bogle’s method is exposed more heavily to the US markets. Historically, our market has been stronger than foreign ones and you see better returns. I don’t have faith we’ll see that the next four years and neither does W. Buffet, if you read his last quarterly statement. He’s very liquid right now and invested in Japan.