|
|
What percentage of your retirement portfolio is in real estate?
04-28-2021, 09:33 AM
|
#1
|
Dryer sheet wannabe
Join Date: Aug 2013
Location: Aurora
Posts: 10
|
What percentage of your retirement portfolio is in real estate?
Until now I have always invested in stocks and bonds for my retirement portfolio. I am now considering diversifying to also invest in passive real estate (besides our home, which has been paid off). We plan to retire in 4-5 years, so I will be doing this investment pre-retirement.
My question is what percentage of your retirement portfolio do you have in real estate? Thanks for your thoughts!
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
04-28-2021, 09:38 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2011
Location: NC Triangle
Posts: 5,807
|
I have 10% of my retirement portfolio in REIT funds, all in a tax-deferred IRA.
__________________
|
|
|
04-28-2021, 09:43 AM
|
#3
|
Dryer sheet aficionado
Join Date: Oct 2020
Location: San Rafael
Posts: 25
|
I have some rental properties, and the equity in them is about 30% of my net worth. Who knows if this is better or worse than the next investment, but it does make me feel like I have a bit of control and predictability that I might not otherwise have.
|
|
|
04-28-2021, 09:48 AM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Apr 2008
Posts: 1,250
|
14.5% in REITs.
|
|
|
04-28-2021, 10:09 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,325
|
I'll say 0%. I do have some preferred stock issued by REITs but those are more bond-like and have only indirect risk with respect to real estate operations.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
04-28-2021, 10:12 AM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,276
|
Zero.
__________________
TGIM
|
|
|
04-28-2021, 10:19 AM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Jun 2016
Posts: 4,663
|
We have one rental property, but it is our former home. We did not buy it as an investment property but decided to relocate and want to preserve the opportunity to live in it again down the road if we choose. So far the return hasn’t been great and our income is too high to get any tax benefit, so financially we would be better off in the stock market for sure.
We also have about 20% of our portfolio in hard money loans. The return hasn’t been nearly as good as the market, but we view it as a diversification tool. The return is way higher than bonds so we have most of the rest of our portfolio in equities. These loans are held in my IRA, and could be a good source of cash flow if we wanted or had to take IRA distributions. However the return is variable over time (when a loan pays off the cash may sit idle for a month or more before reinvestment) so I wouldn’t want to count on it as a required part of our cash flow.
Generally real estate has not performed as well as the stock market over time. Unless you really crave being a landlord, or you like the idea of hard money loans, a diversified REIT can give you exposure to the category without the headaches.
|
|
|
04-28-2021, 10:24 AM
|
#8
|
Recycles dryer sheets
Join Date: Feb 2016
Location: Near Sacramento
Posts: 488
|
Near 10% in REITs.
cd :O)
|
|
|
04-28-2021, 10:29 AM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,575
|
1-2 percent reits.
|
|
|
04-28-2021, 10:49 AM
|
#10
|
Thinks s/he gets paid by the post
Join Date: Jan 2012
Posts: 2,589
|
Not counting the value of my primary home (which comprises about 7% of my total net worth), only about 1-2% in REITs.
|
|
|
04-28-2021, 10:55 AM
|
#11
|
Recycles dryer sheets
Join Date: Oct 2015
Location: Bozeman
Posts: 194
|
80%
|
|
|
04-28-2021, 11:00 AM
|
#12
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,325
|
Quote:
Originally Posted by Sojourner
Not counting the value of my primary home (which comprises about 7% of my total net worth), only about 1-2% in REITs.
|
Since the OP asked about the percentage of real estate in our retirement portfolio, I didn't include either of our homes since I don't consider them part of our retirement portfolio... just places where we live. If I had an income producing property then I would include it as part of the retirement portfolio. IOW, for us the retirement portfolio is everything other than our homes, cars and boats and the checking account that we use to pay our bills which typically has only $3-10k in it
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
04-28-2021, 11:25 AM
|
#13
|
Thinks s/he gets paid by the post
Join Date: Feb 2016
Location: SoCal
Posts: 1,293
|
67%. RE has been good to me.
|
|
|
04-28-2021, 11:50 AM
|
#14
|
Full time employment: Posting here.
Join Date: Nov 2020
Posts: 755
|
5% in REITS. I had more, but I'm not confident that Office and Retail are coming back.
|
|
|
04-28-2021, 11:56 AM
|
#15
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 9,958
|
Probably 75% but it's farmland, so in my mind it's kind of an annuity...does double duty IMO...the annual rental income will cover a huge percentage of our retirement budget.
|
|
|
04-28-2021, 12:10 PM
|
#16
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
|
Zero
|
|
|
04-28-2021, 12:12 PM
|
#17
|
Recycles dryer sheets
Join Date: Nov 2016
Location: San Jose
Posts: 469
|
Do we count primary residence as RE investment? It is 50% of the NW. Other than that, 10% in REIT.
__________________
Retired Sep 2023 @56
Target AA: 50% stock / 20% bond / 30% cash
Target WR: ~3.6%
|
|
|
04-28-2021, 01:08 PM
|
#18
|
Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Dallas
Posts: 1,155
|
About 50% of invested portfolio in SFH and Multifamily RE. I keep trying to bring RE holding to 40% but it always grows faster than what I contribute annually to my stocks! Crazy.
PS: I am not counting primary home which is a large acreage.
|
|
|
04-28-2021, 01:12 PM
|
#19
|
Thinks s/he gets paid by the post
Join Date: Jun 2017
Location: Western NC
Posts: 4,624
|
Zero because of the below.
I am currently managing a property owned by a relative though I cannot really call it a rental since the tenant (former long-term employee of my relative) no longer pays rent since at this point in their life they can no longer work & so can't afford to pay for both rent & groceries.
Since the house is supposed to go to the tenant anyway on the death of my relative I've been pressuring them to go ahead & give it away now...the tenant could then sell it at today's high prices & live off the proceeds for a few years at least.
|
|
|
04-28-2021, 01:12 PM
|
#20
|
Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,103
|
Zero
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|