Hi all. I am in the process of setting up a portfolio for my family’s “forever” house. I expect we will buy the house roughly 7 to 8 years from now. The houses we’d be targeting are currently around 1.3 million dollars. For planning purposes, I’m expecting them to be closer to 1.75 million when it’s time for us to actually buy.
My goal is to build a home fund portfolio that maximizes growth above basically anything else. I have a high tolerance for risk and believe strongly in the continued dominance of the US economy, especially as it pertains to tech. I’m about as bullish on AI as one can be.
So, my planned portfolio would consist of just 3 ETFs: VOO, VGT, and TQQQ. I would dca 500$ into VOO, 500$ into VGT, and 200$ into TQQQ every week.
So clearly it’s quite focused on tech, which is by design. The TQQQ probably raises some eyebrows i imagine. I understand that volatile markets will cause decay. I also understand that in bear markets, it could drop 75%+.
Personally, I don’t see these as problems for me. I’ve done lots of options trading in the past, so big drops don’t scare me, I’d just continue to dca. Decay is certainly a risk in flat or choppy markets, but I’m willing to take that risk. I would rebalance yearly so that tqqq doesn’t dominate too much of the portfolio in bull year, and I’d cut all contributions to tqqq by year 5.
So VOO gives me the broad exposure to the S&P 500, VGT gives me the pure tech exposure, and tqqq gives the fun upside. I have legitimately no interest in international markets, it’s the US or bust for me. I envision AI, led by the US, to continue to dominate the economy. This portfolio is my bet on that.
So what are people’s thoughts? Is this aggressive but defensible? My logic is that if things go great in the markets, I could almost buy that 1.75 mil home in cash, since we will have equity from our current home. If the market struggles, I’m ok either waiting a few more years to buy the house, or just to sell for less than I was hoping and accept the risk didn’t pay off.
Few extra details for clarification:
I contribute 500$ a month to each of my kids 529 plans in the simple lifecycle style plans, so my kids colleges are planned for independently of this house fund.
My wife and I both max our 401ks each year, and will also get pensions, so our retirements are also totally independent of this fund.
Thoughts? Suggestions? I’m an open minded person!