[prohornblower]

Put it all on some IPO. Go for broke!!!

Just kidding.

I've got 35k in non-retirement sitting in FNBO making 6%. I may be purchasing a home in a couple years, so my friends suggested I not invest in mutual funds. They've suggested you should buy mutual funds if you plan on holding them for ~5+ years, due to short-term volatility.

I'm not sold either way, but while I wait it's all sitting in FNBO. I don't know why I can't risk 1/4 of that in 2-3 year mutual funds? And keep the other 3/4 in guaranteed returns? If my mutual funds are negative after 2 to 3 years I'd likely not panic and sell them, but I'd put less downpayment on a home, and hold them longer.