I go line by line and allocate a % of full year expense to each month.

They basically try to sell you their service to manage your fund allocation.

As someone who was going to put in $5-$7million in the area, it's the risk of allocating capital with natural disasters.

Your post is a prime example of why allocating reserves and being diligent about maintaining them is the right, long-term thing to do. 

So asset management is a strategic role enabling a solid return on the lifecycle of the individual investment, and portfolio management is concerned more broadly with asset allocation and risk management.

@Duke GiordanoIf you invest in a partnership, the partnership will use that money towards a business that will generate income or loss.The partnership then simply provides you your share of the income on the "K-1".If you invest in a partnership that loans money to investors, You will likely be allocated interest incomeIf you invest in a partnership that invests in real estate, you will likely be allocated rental real estate income/lossIf you invest in a partnership that operates an operating company, you will likely be allocated passive ordinary income.It is hard to say what the rate of return will be because it will depend on how well the partnership does during that year, market forces, etc.

Then you just categorize and allocate everything.  

Make sure you allocate some time for Ushuaia - it is in a beautiful location that is great for hiking.

By allocating your paycheck properly before you have a chance spend it all will allow you to build a secondary nest egg from which you can feel comfortable investing from.This skill is so valuable in today's world, where we all must be in front of the other guy in the fast lane, where temptations lurk like the wilderbeasts from...oh shoot, I'm rambling again.

The portion of the buyer's monthly payment allocated to the $40K return of basis is tax free.