I'm with the Arebelspy on the idea to keep it in equities for awhile unless there's a reason you HAVE to buy the house in year x. If it's a particularly crappy time for the market you can defer the purchase for a year right? So much can happen in 5 years why have all that money hanging out doing little. If you want to hedge a little, maybe take out a small percentage in year -5, a little more in -4 and so on?