Where to stash future investment savings?

[Aaron Daniel]

Hello BP, 

I am saving money for my first investment property and would like to hear recommendations as to where this money should be stored until ready for use? 

I had the idea of saving the money in an ETF that tracks the S&P 500, but is this too risky? Another option of course would be a high interest savings account, but unfortunately that interest is about .50% for most savings accounts right now. Any input would be truly appreciated!

Thanks, 

Aaron

[Jennie Kesselman]

Hi Aaron,

All good options. I commonly see investors using self-directed IRAS and/or whole life insurance policies (see Nelson Nashs book "becoming your own banker") to fund real estate investments. The idea is that with either you have an asset that allows you to pull from your own money from it, invest, and then pay yourself back with interest that compounds for you. Just be careful if you explore either of these avenues it is set up correctly and you use a professional for further advise. Good luck!