Savings / Cash Building Tips

[Tucker Cummings]

Just having this thought today on building my cash reserves for investing and wanted to throw the thoughts into BP.

I've been saving my personal cash reserves for a while so I could buy my own properties and BRRRR/flip them using my own money. I have them in a high interest savings account, and by high interest I mean it was 2% pre-COVID and now it's 0.82%. The thought crossed my mind about "what if I tried to accelerate growth moderately by keeping half my reserves in the stock market, in index funds?" The purpose of doing this is to acquire funds for down payments or powerful cash offers on property.

On one hand you have higher growth rate, on the other hand you carry the risk of an unforeseen downturn. Keeping half in just traditional cash would help mitigate loss.

Traditional financial advice tells us not to invest anything we’ll need in the next 5 years. Traditional financial advice also tells us that our primary residence is the best investment we’ll ever make and that getting a 9-5 job and working endlessly through my most lively years to retire in my most crippled is the dream.

I’m a younger/newer investor, just trying to seek methods for quicker, but sensible wealth creation. So my question is - Does anybody do this? What’s been your experience? What do people see as pros and cons? Let’s open the discussion.