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In a recent blog post WCI stated “Our overall asset allocation will be 75% equity investments and 25% fixed-income investments. Investment real estate and our home will not be calculated into this figure. Our emergency fund will be calculated as part of the fixed income. The ratio will decrease gradually to at least 60/40 by retirement.”
I understand your home(if not originally purchased as an investment vehicle) but why is “investment real estate” not included in your portfolio allocation plan? I’m having hard time understanding that.
Does that also include investments in more passive RE vehicles like the 37th parallel fund or just hard assets like a rental property?
My planned portfolio is as such:
30% savings rate- including employer contribution (20% savings rate without). 60% will fill up tax deferred, 40% will of that will go to taxable.
Allocations
75% stocks
25% RE
5% bonds
Allocation locations
Taxable($43K per year)
45% stock
25% Private REIT syndication
25% Savings rate for rental property investing
5% bitcoin
Tax deferred ($104K per year)
401K
80% stock index funds
15% REIT
~5% Treasury index for easier re-balancing.
Roth IRA
80% stock index funds
15% REIT
~5% Treasury index for easier re-balancing.
HSA
80% stock index funds
15% REIT
~5% Treasury index for easier re-balancing.
However this will radically change if I should not be including private real estate in my allocations? If so, how do you budget for rental property investing? Spare cash? I'm confused.
I understand your home(if not originally purchased as an investment vehicle) but why is “investment real estate” not included in your portfolio allocation plan? I’m having hard time understanding that.
Does that also include investments in more passive RE vehicles like the 37th parallel fund or just hard assets like a rental property?
My planned portfolio is as such:
30% savings rate- including employer contribution (20% savings rate without). 60% will fill up tax deferred, 40% will of that will go to taxable.
Allocations
75% stocks
25% RE
5% bonds
Allocation locations
Taxable($43K per year)
45% stock
25% Private REIT syndication
25% Savings rate for rental property investing
5% bitcoin
Tax deferred ($104K per year)
401K
80% stock index funds
15% REIT
~5% Treasury index for easier re-balancing.
Roth IRA
80% stock index funds
15% REIT
~5% Treasury index for easier re-balancing.
HSA
80% stock index funds
15% REIT
~5% Treasury index for easier re-balancing.
However this will radically change if I should not be including private real estate in my allocations? If so, how do you budget for rental property investing? Spare cash? I'm confused.
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