Time Value of Money

[Dan McClain]

It's been a while since I have last posted. I have been mostly absorbing everything I can from the various threads on this forum. Thanks to everyone for the invaluable insights on various topics.

Simultaneously, I have been reading through "Real Estate by the Numbers." The premise of the time value of money struck me: "Money in hand today has earning potential, and we can turn money today into more money tomorrow by investing it."

I have been saving for a down payment on a rental property. With the idea of "we can turn money today into more money tomorrow by investing it," I place most of this within a taxable brokerage account where it grows based on the market broadly speaking. Does anyone do anything similar or have a better idea? 

Thanks in advance for your input.

 

[Paul Novak]

I do something very similar to you.  I am okay with taking some risk so when saving like this I tend to invest the money in VOO within my taxable brokerage account so it has the change to grow, knowing it also has the change to go down in value.  The other thing I have done in the past is held this money in my cash position within my brokerage account with it not invested.  I use Fidelity and the cash position is like a money market account where I am getting 4.5% interest on my money.