Welcome to passive real estate investing, the show where busy people like you learn how to build substantial passive income while creating wealth for the long term.

And now here's your host Marco Santorelli's.

Hello and welcome to another episode of Ask Marco,

where I answer your investing related questions.

Today's question comes from Arman and he says,

Hi Marco, I'm a long time listener.

Thanks for all that you've done with your podcast.

I have a question about how to efficiently invest my money

that I am saving for a down payment. I allocate a chunk

of each paycheck to saving for a rental property down payment and I was wondering

what you think is the most efficient way to invest that money such as CDs

T bills or just in a regular brokerage account in stocks. I've been doing a lot of

research and I can't decide what is best. Thanks so much, Arman. So Arman,

it's a good question.

I guess you have to look at the time horizon.

Are you saving with the intention of deploying these funds

in a relatively short period of time,

let's say 90 days or less, or are you saving at a pace where

you won't need the funds for, let's say, a year or more? That could make a difference in how you actually save the funds. So if you need the funds to be fairly

liquid, then you'll want to put them in what are essentially referred to as cash equivalents.

And these are typically investments that have short-term

maturities of less than 90 days and they're considered very liquid

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