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GLRBX or SDGIX?

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?

Comments

  • 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.
  • Thank you! I appreciate the advice, and I do think we'd like to see some return, if possible.
  • edited November 2015
    Howdy@chip

    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
  • 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.
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