Fishingmn
Full time employment: Posting here.
So the DW retires in 8 days (52) and I am semi-retired selling some real estate and managing my rental properties (53).
Currently own rental properties free and clear that will generate approximately 57% of our income needs. Not sure how to view the real estate from an asset allocation standpoint.
Asset Allocation with no real estate -
Stocks - 67%
Bonds - 20%
REITs - 3%
Cash - 10% (kind of high as I've been looking for 1 more possible rental to buy)
Asset Allocation if I include the fair market value of my properties -
Stocks - 39%
Bonds - 12%
REITs - 2%
Cash - 6%
Rentals - 41%
You'll notice that the rentals are 41% of my portfolio but are producing 57% of the income we need. I financed half the properties by taking out a $400k, 15 yr loan on a new house we were buying. Previous house was paid off. Therefore, in 11+ years house will paid off and rentals will provide over 75% of our needs projecting a SWR around 2.5. Therefore, I'm most worried about the interim 11 years.
So my questions -
- How would you view the rental properties as a part of an overall asset allocation?
- Given what I've described, does the allocation we currently have seem proper? Obviously, there are many opinions on this but would love feedback.
Happy to provide more info if needed.
Thanks!
Currently own rental properties free and clear that will generate approximately 57% of our income needs. Not sure how to view the real estate from an asset allocation standpoint.
Asset Allocation with no real estate -
Stocks - 67%
Bonds - 20%
REITs - 3%
Cash - 10% (kind of high as I've been looking for 1 more possible rental to buy)
Asset Allocation if I include the fair market value of my properties -
Stocks - 39%
Bonds - 12%
REITs - 2%
Cash - 6%
Rentals - 41%
You'll notice that the rentals are 41% of my portfolio but are producing 57% of the income we need. I financed half the properties by taking out a $400k, 15 yr loan on a new house we were buying. Previous house was paid off. Therefore, in 11+ years house will paid off and rentals will provide over 75% of our needs projecting a SWR around 2.5. Therefore, I'm most worried about the interim 11 years.
So my questions -
- How would you view the rental properties as a part of an overall asset allocation?
- Given what I've described, does the allocation we currently have seem proper? Obviously, there are many opinions on this but would love feedback.
Happy to provide more info if needed.
Thanks!