Help with 7-10 year investment horizon

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financett
Posts: 1
Joined: Thu Sep 13, 2018 6:11 pm

Help with 7-10 year investment horizon

Post by financett » Thu Sep 13, 2018 6:32 pm

Hi! Younger investor here looking for some wisdom from those more seasoned than me.

I have a sum of money (>100k) that I don't need for the next 7 years. In about 7 years I'll probably be ready to grow up, settle down, and buy a house. In the mean time, I'd like to see that money grow. How would you invest for that time horizon? I can be a little flexible with when I decide to withdraw the money, so I'd like to err more on the aggressive side.

I've been reading about three-fund portfolios. What allocations would you use to construct a portfolio for this time horizon?

Thanks for your time.

mhalley
Posts: 6010
Joined: Tue Nov 20, 2007 6:02 am

Re: Help with 7-10 year investment horizon

Post by mhalley » Thu Sep 13, 2018 9:03 pm

7 years meets the criteria for taking some risk with the money. How would you feel if you had less money in 7 years than you do now? Depending on how risky you want to be, maybe 50/50 stock bond in the 3 fund portfolio would be reasonable, 30/50 if you are reallly risk averse.. Use the percentage of equities you have decided on, say between 20-40%.
Take a look at doughroller post on investing for up to five years. He goes over a lot of investments and how they did during the recent downturn.
https://www.doughroller.net/investing/t ... vestments/

delamer
Posts: 5807
Joined: Tue Feb 08, 2011 6:13 pm

Re: Help with 7-10 year investment horizon

Post by delamer » Thu Sep 13, 2018 9:25 pm

Consider one of the Vanguard LifeStrategy funds. They are basically an all-in-one version of a 3 fund portfolio, but with different weights for the components.

I’d consider the Conservative Growth Fund: https://investor.vanguard.com/mutual-fu ... rview/0724

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