Joshua is aged $30.$ He needs a minimum account balance of $$5,000.$ He has $$10,000$ in savings set aside to go holidaying in Europe in about $1$ year from now. He would like to have $$15,000$ set aside as emergency funds in case he loses his job or has unexpected expenses. He would like to buy a property in about $6$ years from now and already has $$40,000$ in savings set aside as a deposit. His parents cannot act as guarantors on his home loan. He understands the risks associated with investing in shares.

Which of the following asset allocations is MOST appropriate based on the examples provided in the lecture material:

$$5,000$ in cash and $$65,000$ invested in shares.

$$5,000$ in cash, $$25,000$ in fixed interest and $$40,000$ in shares.

$$5,000$ in cash, $$25,000$ in fixed interest, a margin loan of $$20,000$ and $$60,000$ in shares.

$$5,000$ in cash and $$65,000$ invested in Bitcoin

Clear my choice