@Alex Howard It is a matter of personal preference and risk tolerance but I think that I would open an account with etrade or something and take the money I would contribute to a 401k and put it into index funds.

Buy some index funds.  

Yesterday in Austin was 97F with a heat index of 103F. 

I suggest having the practice provide you a paycheck so you can have proof of income, if you aren't already doing this.There's nothing wrong with getting a 7% return... probably through some sort of index fund/mutual fund combination... and then taking that money in a year or a couple years and starting the real estate journey then. 

As long as I continue to work at my current company until March 1st, 2019 when my company pension benefit will be mostly maxed out.1) 401K @ 6% nominal, 2.91% real in year 2035 would be ~ 1 Million nominal, 600K real.2) HSA with same returns as above but at 65 years old would be 25K nominal, 13K real.3) Pension schedule If I work at my current place of employment until March 1st, 2019 tentatively as follows - start withdrawals at age:a) 50 ~ $959.00  b) 55 ~ $1,316.00c) 60 ~  $1,880.00This would be a fixed index annuity, not inflation adjusted.  

The rainy day could even be put in an index fund (or something of the like) so it is still working for you.

Anyone who invests in anything knows there is a saying that goes something like this"whether you are bearish or bullish on [insert ticker symbol, market index, real estate, etc], you will be right sooner or later - the question is when"People who are bearish on real estate just keep pushing the year further and further out, until finally they see a pullback that is large enough to say "I told you so" when in all actually, I personally believe that todays highs will still be higher than next years lows.

To build a deposit I've been investing in a single, diversified index fund.

@Gabriel BenavidezYou really can't go wrong with index mutual funds, specifically Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), requires minimum of $10,000 to start or Vanguard 500 Index Fund Investor Shares (VFINX), requires minimum of $3,000.

Minimum it should be the yearly consumer price index for your area.