Over the next two years I would say your best bet is a short term bond index fund, like Vanguard. You won't make much but it's pretty safe. You're right to be conservative, two years is not a long window so risk is not a good idea.

If you need the money in 2 years for a house purchase then you do not want to invest the money. Investments carry great risk, and you should not invest money unless you can leave it alone for 5 years or more.

In your case you should put the money in something ultra conservative like a CD or perhaps (what I would do) buy a 2 year US treasury bond which might pay around 2% (better then 0.10% most savings account will pay right now)

The best investment (long term) is to get some real estate in a good location or to place the money in an index fund in the USA stock market like the S&P 500 index. However, you could cost yourself big time if the market tanks in 2 years and be unable to by a house. That's why I would advice against it in your situation.

You don't, you keep it in a liquid savings account to guarantee that it is there for the home purchase. You need to be able to move on a dime in real estate, so you can't afford to play with the ups and downs of the market.

Hello,

I would like to invest $35,000 for a 2 year period with intentions of pulling out of this investment for a down payment on a house. With that being said, I assume that I'd have to be heavy on the risk to provide more of return but to also be mindful as I don't want to lose money to diminish my ability on the down payment.

Any suggestions out there?

Thanks!

Krupa