SkolVikes7 wrote:has a solid emergency fund (index funds).
He wants to use the $80k that he has invested with fidelity and transition it from these high risk assets to use for a downpayment for a house in 3-5 years.
My first instinct is to tell him to sell these to purchase a short term bond index fund (such as Fidelity Spartan Short-Term Treasury Bond Index Fund Investor Class). Although I know it is not ideal to hold these types of funds in a taxable account.
Another note is he is currently in a tax free zone (and spend the past three months in a tax free zone), I don't know if that would change anything. In all reality, the decision to go with CD's, MM or Short term bond funds in this time frame will most likely not make much of a difference, I am just looking for any advice or oh bye the ways before I tell him my opinion. Thanks!
Anyways, zero-risk is not really zero-risk because of inflation . . .
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