Where do you park your RE Money stash to min. Inflation?

[Aaron Hall]

Hi All,

I've begun buying RE properties with my business partner, but I really don't know what to do with my "Stash" of RE Investing funds that I save as I'm waiting for it to accumulate enough for another down payment on a property. I am worried about inflation, the last couple of years I've just parked it in my savings account, which is obviously just losing buying power year after year due to inflation.

What do other investors do to minimize the damage of inflation to their money? Do investors park their money in some magical savings account with a decent interest rate that I am unaware of? Because I can't seem to find anything that comes close to beating or at least keeping even with the assumed average 3% inflation.  Are you investing your Stash into index funds and later pulling it out when you are ready to pull the trigger on a RE deal? Please enlighten me. I don't want to keep putting money into a savings account that is losing buying power year after year. My annual income is only $57,200K (Pre tax) so I'm only able to buy one property a year, at the very best of situations so my money sits in my savings account for fairly long times.

Thanks for any input and advice ahead of time.

[Caleb Heimsoth]

Aaron Hall what do you define as a long time? For investing purposes it’s likely not that long. A rule of thumb is not to stick money you think you’ll need soon In the stock market. Soon is defined as 5 years or less.

So assuming that’s the case your best bet will be high yield savings account (ally bank is around 1.75 percent I think) or a money market account