Tony Robbins says NO to Real Estate....

[David Krulac]

On his current cross country tour, "The Burning Down The House Tour", no that's not the right name, that's somebody else's tour; its the "All Weather Tour"; says that real estate should NOT be part of your investment portfolio.

He says that your portfolio should look like this:

Stocks 30%

Medium Term Treasuries 15%

Long Term Treasuries 40%

Gold 7.5%

Commodities 7.5%  

You'll notice NO real estate.

I was reading elsewhere that money market funds, bank CDs, and 30 day T-Bills have all failed to keep pace with inflation over the last 25 years.

And over the last 25 years inflation has averaged 2.2%, gold has averaged 5%, oil has averaged 6.5%, Bonds have averaged 7%, Stocks have averaged 9.6% and real estate has averaged 9.8%.

How many Bigger Pocket member's portfolio looks exactly like Tony Robbins?

[Jean Bolger]

Tony Robbins may be a great motivational speaker, but that doesn't make him a financial planner, does it? 

That said, I don't think his allocation is unreasonable for someone who already has millions and needs to put it somewhere.

But to build wealth starting with not much capital, RE is the way to go, IMHO