Hi everyone, I’m looking for some feedback on my financial strategy as I plan for major life changes over the next 4 years.
I am 27 years old, Italian, currently living with my parents to maximize my savings rate. I plan to move into a rental with my partner in two years and eventually buy a home around age 31. My current net worth is roughly 1.5x my annual gross salary. About 80% of my wealth is invested in a portfolio I am transitioning toward 100% global equities, while the remaining 20% is held in cash for emergencies and car maintenance.
My goal is to implement a "two-bucket" strategy. The first bucket is "Perpetual Capital," a long-term equity block intended to grow untouched for decades to provide future financial freedom. The second bucket is a "Strategic Liquidity Fund." My plan is to split my monthly savings 50/50: half into the equity block and half into the liquidity fund. This liquidity fund, potentially bolstered by a future family inheritance, is intended for a home down payment and eventual car replacement.
The logic is to remain flexible. Even when I move out and my expenses increase, I want to prioritize the cash fund to ensure that by age 31, I have enough for a down payment without being forced to sell my stocks during a potential market downturn. If the inheritance is delayed or my car needs replacing sooner, I want my own savings to be the primary safety net.
I am also planning to rotate a portion of my portfolio from bonds into equities to finish building the long-term block. However, given current market valuations, I am debating between a lump-sum move or a short-term dollar-cost averaging approach over a few months to mitigate the risk of a correction.
Does this strict separation between high-risk "forever" stocks and a safe "house fund" make sense for someone in my position? How would you manage the transition from living with parents to renting while trying to keep a house-buying goal on track?