What is your asset allocation between Real Estate, Stock and Cash on hand?

6 Replies

Curious to see how everyone is allocated between Real Estate, Stocks, and Cash, and cash in hand / debt ratio in 2015.

No one needs to share their actual numbers, unless you want to, but just percentages.

For example, if your networth is $10,000

1) Your equity in real estate is $4000

2) Your stocks holdings (401k, IRA etc) is $3000

3) Your cash on hand is $3000

4) Your total mortgage debt (primary & rental properties) is $10,000

Real Estate would be 40%, Stocks would be 30% Cash on hand would be 30%, and cash to debt ratio would be 30%

Medium jcrp logoJames Park MBA, Johns Creek Realty Partners LLC | [email protected] | 678‑865‑6250 | http://www.johnscreekrealtypartners.com | GA Agent # Broker 344981, CA Agent # Broker 01894781, GA Lender # NMLS 157229

oh fun

I'm about 

50% stocks (retirement, kids college)

40% real estate (primary residence and 3 investment properties)

10% cash

What are stocks?

Originally posted by @Mike Landry :

oh fun

I'm about 

50% stocks (retirement, kids college)

40% real estate (primary residence and 3 investment properties)

10% cash

@Mike Landry, 

It seems like you are quite diversified, not too heavily allocated to either real estate or stocks. Would you care to share your cash / debt ratio percentage? Cash on Hand / Total mortgage debt on primary residence and 3 investment property mortgages.  

Medium jcrp logoJames Park MBA, Johns Creek Realty Partners LLC | [email protected] | 678‑865‑6250 | http://www.johnscreekrealtypartners.com | GA Agent # Broker 344981, CA Agent # Broker 01894781, GA Lender # NMLS 157229

I was focused on stock market before, but now I set up a formula using Value Averaging (it's like adding values to your portfolio so that it goes to a certain amount each time). So for example I have a goal of 2 million in 20 years, I buy about $4500 each quarter, the number grows by a factor g also to take inflation into account. If the market goes higher, I buy less, if lower I buy more. It will lower the cost of buying by a lot and boost long term return. The plan can also be adjusted every a few years based on situation.

With that said I put others into real estate. You can diversify in RE too, such as buy different locations, different price ranges and different types. 

One more thing is to always have some cash reserves, because good opportunities will come occasionally, or bad things can happen too. Either way, you will be prepared and be glad you have some money ready to go.

My turn!

7% cash (saving about $1k/month, which gets reinvested in the real estate every summer)

40% real estate (2 duplexes, 2 SFH. Started 5 years ago at age 23)

53% stock (mutual funds, mostly purchased by extended family members when I was born, with dividends continuously reinvested)