§ 01
| Allocation Level | Approach | Suitable For |
|---|---|---|
| 0–5% | REIT ETF as diversifier | Passive investors, small portfolios |
| 5–15% | REIT ETFs + sector tilts | Moderate investors seeking income |
| 15–25% | REITs + 1–2 direct properties | Active investors with capital |
| 25%+ | Significant direct portfolio + REITs | Real estate professionals, high net worth |
§ 02
Your primary home is NOT an investment allocation — it’s a consumption asset. Don’t count it as part of your real estate investment allocation. An investment property generates income; your home generates expenses.
§ 03
Calculate your current real estate allocation. Include investment REITs and rental properties but exclude your primary home. Is it 0%? 5%? Consider whether adding real estate exposure would improve your diversification.
§ 04
Your portfolio is 70% stocks, 20% bonds, 10% cash. A 10% REIT allocation would most likely:
§ 05
§ 06
Building a portfolio. A financial advisor suggests 30% real estate allocation. Disciplined reaction?
Five questions · AI feedback
Sit with the ideas.
A 35-year-old homeowner has a $400,000 home (with $300,000 mortgage) and a $600,000 investment portfolio with zero REIT exposure. Net worth: $700,000. Real estate is what percentage of net worth, and what REIT allocation would make sense?
Why: