I have about $18k in mutual fund assets that I am planning to use for a down payment on a home within the next 1-2 years. Combined cost basis for the assets in question is +$2,800. Right now the asset allocation is aggressive, with a heavy slant towards stocks.
I'm not going to be contributing to these funds within the above timeframe. I just want to make sure they hold their value.
The way I see it, I can either liquidate the funds now and put them in a savings account, or I can rebalance to a safer investment within the funds, then liquidate closer to the actual closing date.
Are there any advantages or disadvantages to doing one or the other, or does it really not matter?