Index funds to boost savings?

[Ryan Hogan]

Ok so quick question been rolling around in my head for quite some time, I’m currently trying to buy a house every other year I’m 28 I bought my first house last June and now have a little more then half of a down payment saved for my second next year. So my question is I have over 10k in savings doing nothing for me as I save or should I throw it into a safe index fund and make extra money on my money as I wait?

[Thomas Greer]

Historical returns are out there...as well as risk.  It really is a personal determination. Do you want zero risk... keep 10k in savings or like account. Willing to accept some risk...buy treasuries or high grade bond fund. Feeling confident about large cap over the next 3 years...expose yourself to the s&p. Etc. 

I hope that is useful but do the math on how much you will earn vs the risk. Investing 10k at 8% (which is NOT risk free) is appx 800 per year. Do you want to risk your RE Strategy if a home every 2 years so you can make 800 per year. 

Just some thoughts. All the best!