Imagine that you want to buy a house in 5 years and you will need $5000 for the down payment. Right now, you h

Question:

Imagine that you want to buy a house in 5 years and you will need $5000 for the down payment. Right now, you have $3500 in a savings account, which you plan to invest in order to have that $5000 when you’re ready to buy your house – this is your financial goal. By doing research, choose a blue chip stock fund that you feel can help you reach your financial goal. Once you have chosen a blue chip stock fund, look at the fund’s top ten holdings. Which one of the following choices would you make to meet your 5-year financial goal? Would you choose the blue chip stock mutual fund? Or would you choose one single stock among the stocks in the mutual fund’s top ten holdings? Use examples and research results to support your investing strategy compared to the alternative choice.

Answer:
It is not wise to invest all your portfolio in just one stock.

I can advise you.

i'd hire a broker to explain the differences of each and then go from there.

sorry, dude, that's the best advice i got.

Borrow $1500. That will make $5000 you need. If you wait 5 years, the house you want could be twice its current price unless there is a housing bubble waiting to burst where you live.

Talking about borrowing give a try at www.prosper.com

This is the new p2p lending/borrowing without the middle men. (Similar to Zopa in U.K.) This works like ebay. You list a loan for $X (you can borrow up to $25,0000) at r% or less. The lenders would bid for your loan. As a borrower you are the "seller" and the lenders who bid on your loans are the "buyers." Unlike in ebay there will be multiple lenders giving you partial sums. Prosper takes 1% service fee upfront from you and distribute your monthly payments to the lenders. You personally won't have to deal with the lenders and you can remain anonymous.

Your chances of getting a better rate on the loan is higher if you have good credit. Propser does the usual credit check when you sign up as a borrower and rates you as AA, A, B, C, D, E, HR(high risk), or NC (no credit).

Imagine that you want to buy a house in 5 years and you will need $5000 for the down payment. Right now, you h

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