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We have approximately $3,500 to invest in savings for college with a 3-5 year time frame. So far, I've narrowed it down to GLRBX or SDGIX. Is there any reason I might choose one over the other?
Depends on how this may fit into your larger investment strategy for college savings, as these two funds are quite different. But in terms of an "all-in-one" solution I would go with GLRBX. The fund has a healthy slice of stocks--50% currently--to add some return. SDGIX is a bond fund, and frankly I wouldn't expect much from a bond fund over the next 3-5 years. While a loss of principal is always possible over a time frame as short as 3 years, I'd say the odds are much higher for that occurring in a global bond fund (even a good one like SDGIX) than a conservative allocation fund with stock exposure.
Is this money in a taxable account or a 529 college plan?
My 2 cents worth is to echo "districtwanderer's" comments about these funds. If open choices are available within the conservative allocation area, I would opt for VWINX for this task.
Gosh, if needed it in 3y for college, albeit stretchable to 5, I might not even go with GLRBX. I might try to find a 5y CD @2% and get $5500 at the end. Or put in FTBFX or PONDX or equivalent. Now, I am looking at the 5y rolling returns of GLRBX, and understand their short bounceback. So maybe 50-50? You are not talking about making a lot in any case, probably.
Comments
Is this money in a taxable account or a 529 college plan?
My 2 cents worth is to echo "districtwanderer's" comments about these funds.
If open choices are available within the conservative allocation area, I would opt for VWINX for this task.
Regards,
Catch