Rules of thumb exist for folks investing in stocks and bonds (X% in stocks, Y% in bonds based on your age). However, until this class, no great rules existed for those investing in rental properties and other real estate. In this class you'll learn:
- What should your asset allocation vary with?
- Everything has risk. How do you evaluate risk versus reward?
- Some historically common asset allocation models
- Traditional asset allocation rules of thumb (for stocks and bonds)
- Rebalancing your asset allocation and a discussion on frequency of rebalancing
- A discussion on retirement date risk, sequence of returns risk, portfolio size effect and glide paths
- Diversification: friend or foe?
- What are bonds? How does this relate to real estate investments?
- Are bonds dead?
- The source of real estate equity
- The accessibility of real estate equity and its impact on asset allocation
- The two types of real estate equity: real estate equity and James' Bond-Like Real Estate Equity™
- Should I pay off my mortgage?
- An introduction to James' concept of True Net Equity™ and how this impacts asset allocation
- Optimizing Safe Withdrawal Rates for Asset Allocation with real estate investments
- The role of reserves on your real estate asset allocation
- An alternative perspective: using the Barbell Asset Allocation model
Duration: 1 hours and 52 minutes
Recorded: May 12, 2021
Instructor: James Orr
