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Subject Expert
I hear $100 can get you .02% of a racetrack.
100%. FXAIX or VOO and chill
This is exactly how I built my portfolio to the first $3M (VOO).
How important is it for this investment to be up in exactly 5 years? If it’s flat or momentarily down, would that be detrimental to you?
If yes, find a money market or CD with your current bank / brokerage or choice and stick with that.
If you have some flexibility and can tolerate a little bit of volatility in exactly 5 years, then I’d either VTI or VOO and chill
Subject Expert
Why would you describe stock market volatility as only "a little bit" or "momentary?"
That's not accurate, is it?
Subject Expert
A five year horizon? As in, I need to spend the money in five years? I would just hold it in a short TIPS fund, probably. If I tried holding stocks it would be in a low volatility portfolio like the 40/60 mix in VSCGX, but I probably wouldn't.
The reason why: stock markets are volatile. There is no knowing where they will be in five years. In 12% of historical five year periods the US stock market has been down in nominal terms, so in real terms it's even more. And sometimes when it's down it's really down. The money might not be there when you need to spend it in 2031.
Where did the five year number come from?