Thinking About a Big Gamble
Lets look at the facts and just the facts.
The market is down. Down very close to 20% from the highs we saw around October of last year. That puts us right around a bear market. Another bad day or so and we will be firmly entrenched.
My wife and I have at least two years time before we need access to our housing savings. Maybe three depending on the circumstances.
From those bits of information, I was thinking and thinking very seriously about moving the bulk of our housing savings into a stock index fund and roll the dice on the market correcting itself with our two to three year time frame.
It is risky. Both my wife and I are reeling from individual stock investments. However, buying into a proper index fund should help to massage potential losses by virtue of instant diversification. In the event that the market takes a nastier turn for the worse, it will be one of the worst stock market drops in a while. The market is already down significantly.
I have somewhere around $5,000 that is available for this venture. I’ve already moved the money and am conscidering alternatives while talking it over with the wife.
I have always believed that in order to reap great reward, you need to step up to the plate and take risks. This in my opinion is just such a time. With a two year horizon, I think it is worth a shot and will provide a much better return than ING will ever give us.
All I am looking for is a quick and painless 5% to 10%. I think that the market has that to give. With a little bit more research I will be ready to make a decision. I’ll keep my blog updated with results.
Go big or go home. I don’t want to be stuck on autopilot for the rest of my life.