How Heavy Is Your Wealth Tilted Toward Real Estate?

[Don Konipol]

How heavy is your wealth tilted to real estate?

I’ve been thinking about this lately.  About 80% of my net worth is invested in real estate, real estate syndications, real estate notes or REITs.  Now that I’m in my early 70s, I think that’s TOO MUCH concentration.  I’m going to begin moving to a 60% real estate concentration.

Wondering how others have their investments structured.  How heavy is real estate in YOUR portfolio? 

[Mitchell Hein]

My current allocation consists of approximately 40% real estate, 40% equities (low cost ETFs and index funds), and 20% cash. While the cash allocation is somewhat high, it serves as a reserve for our rental properties and future real estate investments, held in a high-yield savings account. This amount fluctuates, typically peaking before a property purchase and then gradually decreasing as we rebuild reserves for the next opportunity. As our net worth grows, we aim to adjust this allocation to 45% real estate, 45% equities, and 10% cash.