I have about 50% of my net worth in paid for real estate (not including my primary residence). The rest is in equities and bonds split between taxable and retirement accounts. I’m going through my assets to rebalance and trying to figure out if I should balance my equities and bonds as a standard 60/40 split and not factor in the real estate, or, because of the real estate, should I be more like 90/10? I know I’m overweight real estate, but I like it for now because of that tax advantages and it gives me something to do/work on. At some point in the next 10-15 years I’ll probably sell most of my individual real estate holdings and invest in something more passive.
I’m in my late 40s and semi-retired. I am debt free. The real estate income and taxable account dividends cover my living expenses, but I want to make sure I have some growth investments as a hedge against the potential of slowing real estate returns. My CPA and financial advisor have given me some input but I wanted to see what others had to say.