Key idea
A classic medium-term goal. As the buying date nears, the priority shifts from growth to protecting the money you have gathered.
Saving for a home down-payment is one of the most common medium-term goals, typically a few years away. Its defining feature is a relatively fixed date, which shapes how the money should be held as that date approaches.
The shift as the date nears
Early on, with the goal several years out, some growth exposure can make sense. But as the buying date approaches, the priority flips: you no longer want that money exposed to a market fall that could shrink your down-payment right when you need it. So money is gradually moved toward safer, more stable options as the date nears.
Far off
some growth exposure
Getting close
shift to stability
Near the date
protect the amount
Why this matters
A down-payment is a large sum needed on a specific date. Imagine it sitting fully in equity when a crash arrives the month before you buy, the goal could be derailed. Matching the money's safety to the shrinking horizon protects the outcome. This is goal-based thinking applied to a very concrete, high-stakes target.
For a dated, medium-term goal, protecting what you have gathered eventually matters more than squeezing out extra growth. How and when you shift is your decision, guided by the date.
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