I have a good chunk of change to use as a down payment on a mortgage, but I am not planning on buying a house for another couple years or longer. My thought is to do 20% S&P 500 index fund, 40% medium term bond fund, 40% CDs. Is this too aggressive? Even if the stock market drops another 50%, I only lose 10% of my total investment while I have potential to make decent change if the stock market goes up a bit.
Also, are there any investment types I should be using in particular because this money is to be used as a first-time home buyer? I already max out the $5K/yr into my Roth IRA for retirement, so IRA type accounts are not available for this investment.
Also, are there any investment types I should be using in particular because this money is to be used as a first-time home buyer? I already max out the $5K/yr into my Roth IRA for retirement, so IRA type accounts are not available for this investment.