We’re debating becoming landlords in order to intelligently use a “big” (relatively speaking) pile of cash we’ve saved by investing in real estate. What are our other options for investing money wisely but still having access to that money if needed? We’d ultimately like to have a house for ourselves to live in.
Landlording sucks so badly. Club Thrifty and Planting Our Pennies are probably better people to ask about real estate investing. It’s not the worst idea in the world to buy a place, rent it out, and then live in it later. But… Yeah, we know nothing about real estate investing except that landlording can be horrifically stressful, even with a property manager. We would never do it.
Personally I’m a big fan of the stock market for long term investing, specifically index funds. Yes, they can lose value, but so can real estate! If you’re not putting money in Roth IRAs, you should start (because you can take out the principal). If you already are, then Vanguard S&P 500 is good.
If you’re looking for more short-term options, there’s the standard assortment of stuff that doesn’t currently have great returns. You know, your CDs/term shares, your money market funds, your savings accounts.
You asked this question so long ago, you’ve probably come up with your own answer– what did you decide on?
Grumpy Nation, what should we have advised?