Asset Allocation Discussion (Real Estate/Cash/Stocks & Bonds)

[Seth M. Jones]

There are many schools of thought out there regarding asset allocation... There are hardcore Real Estate Investors that will only invest in Real Estate and hold cash reserves, and there is a substantial part of the FI (Financial Independence) community that advocates for Index Fund investing (a la J.L Collins' "Simple Path to Wealth"). Leaving alone the whole stocks vs. bonds discussion, I'm really curious what are some "seasoned" investors thoughts on holistic asset allocation?

Currently, my portfolio (net worth) is 85% Real Estate Equity, 10% Cash, 5% Stocks/Bonds. This is primarily due to a focus on aggressively growing my real estate portfolio in my 20's. Now into my 30's I feel compelled to rebalance a bit, though I'm really interested to hear what others have to say about asset allocation?

Specifically, what are your thoughts on the "ideal" (let's pretend one exists) asset allocation? Looking forward to hearing some thoughts. 

[Mike Dymski]

The FI community places a high value on time; therefore, passive index funds fit better than active real estate for many members of that community.  Real estate investors place a high value on control; therefore, an active RE portfolio resonates with their goals.  I am painting broad strokes for simplicity.

I feel that diversity and knowledge are inversely related...need more diversity when knowledge is low to mitigate risk and less diversity when you develop expertise (leverage it).