How impatient are you to purchase a house? What percentage of the needed money for a down payment can you invest/year? I think these are two important questions to answer.So, if you were starting from zero and wanted to invest your money knowing there was a 50% chance in the next 12-24 months you would cash it out (and a 50% you would not), how would you do it?
If you need 100K, are able to invest 50K/year, and want desperately to purchase a house in two years, then the smart move is to put the money in a stable investment like a money market fund.
If you need 100K, are able to invest say 30K/year, and want desperately to purchase a house in two years, then the only way to achieve that goal is to invest all of the money in stocks.
For scenarios with other parameters, a mix of investments with different levels of expected volatility and return may be appropriate. To game this, I suggest using a Monte Carlo tool to help identify a mix of investments. https://www.portfoliovisualizer.com/mon ... simulation
Statistics: Posted by dogagility — Thu Jul 18, 2024 5:40 am — Replies 6 — Views 1282
