04-23-2015, 04:01 PM
Ditto to both of the above replies. Don't risk your house money in the market if you'll need it in a few years.
Next off, ignore the Schiller P/E. It's a cute statistic but there are so many mitigating factors and influences that it makes it close to meaningless in my opinion. For a starter primer, see Chuck Carnevale's article here.
What I could suggest is to look at a short-term bond fund. Something with a weighted maturity of less than 5 years so you can get your interest rate above the minimal bank rate yet not be so subject to as huge swings should interest rates rise in the meantime. Other than that, I wouldn't go any further in risk assets. Remember, high yield = higher risk your money won't be there when you need it.
Next off, ignore the Schiller P/E. It's a cute statistic but there are so many mitigating factors and influences that it makes it close to meaningless in my opinion. For a starter primer, see Chuck Carnevale's article here.
What I could suggest is to look at a short-term bond fund. Something with a weighted maturity of less than 5 years so you can get your interest rate above the minimal bank rate yet not be so subject to as huge swings should interest rates rise in the meantime. Other than that, I wouldn't go any further in risk assets. Remember, high yield = higher risk your money won't be there when you need it.
=====
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan