<prompt> Human: also posted to investingI have around 260k being actively invested by a money manager at Merrill Lynch. He was given the instruction to have a moderate risk level as I will probably be using all of this money in the next 3-5 years to buy a house note, this isnt my entire net worth. Thus, he has it allocated around 5050 to fixed income and equities. His fee is 1 annually of any money that he manages and I am thinking about moving all of this money to ETFs as that 1 significantly cuts into ROI. In addition to his fee, he invests in a number of funds that have their own expenses, i.e. vanguard short term bond fund 0.20 expense ratio so i feel as though im getting double taxedBreakdown of equity distribution: - 29 large cap growth - 31 large cap value - 10 smallmid cap growth - 12 smallmid cap value - 12 intl equity - 5 equities blendBreakdown of fixed income distribution: - 20 long term bond - 38 int term bond - 38 short term bond - 4 fixed income blendTop holdings of total holdings: vanguard short term bond 10.52 vanguard intermediate term bond etf 8.59 ishares barclays mbs bond fund 8.16 vanguard financial etf 4.86 sector spdr consumers stpl 4.78 sector spr industrials 3.96 sectors spr energy 3.80 sector spdr utilities 3.67Id appreciate your thoughts on moving from active to passive investing and if i should essentially copy his investment style FI vs eq , value vs growth , large vs smallmid etc? im happy to answer any other questions you guys have.  <response>: If you are going to use this money to buy a house you should divest immediately. Money that will be spent in the short term should not be exposed to market risk. Depending on your income you will need to be careful about how you do this, as youll probably incur some capital gains however, capital losses may offset your gains. 