Where to Diversify the Portfolio

[dougcarlyle]

Currently, my 401k investments are about 60% stocks, 20% real estate, 10% international and 10% high-risk. I am thinking of redistributing the percentages. Any suggestions?

[jIM_Ohio]

Re: Where to Diversify the Portfolio

How old, how much do you currently have saved (for retirement), and what age do you want (plan) to retire?

For example if you are 32 with 100k saved, making 32k a year and want to retire at 67, I'll give you one answer.

If you are 45, with 25k saved, making 200k a year and want to retire at 50, I'll give you a different answer.

[disneysteve]

Re: Where to Diversify the Portfolio

If you are 45, with 25k saved, making 200k a year and want to retire at 50, I'll give you a different answer.

Yep. Then the answer would be Lots of Luck!

[Fern]

20% seems like a lot for just real estate, no?

[jIM_Ohio]

Depends on age, other holdings etc... I have 25% of assets in a single fund... so no reason to think 20% RE is bad.

[Scanner]

Well, one thing with real estate - they ain't making anymore (well Hawaii is but it takes millions of years).

The thing about REIT's are that for some years, and I think in the next few, you won't see spectacular returns, maybe 5% or 8% or 11% or even a negative -8% and then on good years, they'll net 20% or 30%.

In the 90's, people holding REIT's were feeling very left out since stocks went on a joy ride.

I don't know - I plan on holding 25% because even at an average of 8% per year, I think that's pretty good.

[jIM_Ohio]

REITs are not correlated to stock market. For that they are great for a portion. Anything with an 8% annual return deserves serious consideration, IMO.

[Fern]

i was one of those people who held REITs in the 90s.