Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

7
Posts
4
Votes
Tate Meyhoff
  • Highland Village, TX
4
Votes |
7
Posts

Putting money in Index Fund or keep in savings account

Tate Meyhoff
  • Highland Village, TX
Posted

My wife and I are really excited to get going on our REI journey, with one problem. We currently have enough liquid cash to purchase and rehab one investment property using conventional financing. We would like to scale relatively quickly. I am tired of having our chunk of money sitting in a savings account that earns hardly any interest. Do any of you folks park your cash in Index Funds to try an maximize any gains? I know there are risks involved with the stock market, but traditionally S&P index funds are a very safe investment. I also know that any gains will have tax implications, which I am ok with knowing my money is actually growing. Anyways, just looking for any advice or first hand knowledge of any of you out there using this strategy over they typical savings accounts.

Thanks,

Tate

Most Popular Reply

User Stats

79
Posts
36
Votes
Melissa S Vrobel
  • Investor
  • Orlando, FL
36
Votes |
79
Posts
Melissa S Vrobel
  • Investor
  • Orlando, FL
Replied

@Tate Meyhoff.. I had the exact same thought myself! I am not afraid of risk, so I went with an account at IBKR. I picked that brokerage because of their low interest rates on margin loans. I know that margin loans also have risk, but I never borrow more than 25% of my account balance and I pay less than 2% while my index funds are never cashed out and continue to go up in value. To balance a "what if the stock market crashes below 50%" scenario, I also have an open HELOC that I don't use just in case. I like all of my money working so this is the strategy that I am comfortable with, but you should always talk to a professional before making a decision.

Loading replies...