<prompt> Human: My wife and I have about 25k saved up for a house down payment. Well likely be shopping in the 300-350k range in 2-3 years, so a 60k down payment would be great. I was considering taking 10k of that down payment, which is in a low-interest saving account now, and opening an account with Vanguard and putting into VTSAX Id continue to put 23 of savings into the low interest savings and 13 into the VTSAX account and let it ride until were ready to cash out. Edit: Ill also note that this 25k isnt our life savings and doesnt include an emergency fund - its in a separate account for a house payment only. Losing all of the money wouldnt bring us any hardship, it would just set back our house purchase.Does this seem reasonable or is this a red flag? If we lose everything in a catastrophic crash, we wouldnt be wiped out, but I know that Index Funds also are viewed as more of a long-term 5 year investment. Something like a CD ladder is too much effort with too little return. Are there any other options that might be better in the short term or does this seem like a reasonable way to give our little nest egg a boost?In case anyone is wondering, she has a combined 30k in student loans that we will have paid off by December at 6. We own our cars outright. We currently rent and have no other debt besides her loans. Assistant: I would save it in a Savings account but Im weird that way.Really, keep it in your low interest account, thats what they are for.Human: I understand your sentiment, but it kills me to have 25k in an account and get 1.03 interest on it each month.  <response>: Would it feel better to see it lose 3k in a month because of a market dip? Because I have long term savings in VTSAX and that happened to me already in 2014. Luckily they are Long Term - and I dont care.If I wanted to use that money in 2 years, you better believe it would be earning that paltry 1. I know people say make your money work for you. Well, if it were as easy as turning 25k into 50k in a year because you picked the right nice safe index fun then we the economy would look a lot different. Edited to add: I keep around 30k in a Money Market account with Ally and Im pretty sure it averaged more like 20 a month in 2013, according to my 1099-INT. 