Originally Posted by Earl E Retyre
First, thanks for all the replies. Let me give you a little more information about my situation. Total net worth = $2.1M. Currently planning on the following asset allocation:
(4) REIT: 1%
(5) International VTIAX: 3%
On a different note, I'd look hard at owning only 1% of any asset (even 3% seems low). It such as small amount that it probably won't make a difference in the overall portfolio, but it adds another fund that you have to manage.
1% of $2.1M = $21,000. That's a small amount. Let's say the asset doubles and everything else in your portfolio stays the same. You are now at $2.121M. Your portfolio has gone up by 1%. And you need the asset to double in order to get this gain. If you pick a more reasonable gain, let's say 10% ($2,100), then your portfolio has gained 0.1%.
You might have a good reason to own this asset in a small percentage. But in running the numbers, it doesn't appear beneficial.