Re: My Personal Finance Plan
If you want to buy a house in 3-5 years a 75/25 allocation is unconvential to say the least, especially consider 25% is in small caps which are riskier than the total market. Think of it this way, what effect will the spread between bond fund return and stock fund returns have on your investment in only 3-5 years? Not much at all. What risk are you taking? Maybe next year the market goes down 20% and you lose 9 grand.
If it was me, I would take all of the money earmarked for your downpayment and go with 25%TSM/25%TBM/50%STbond.
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05-03-2006, 01:51 PM
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