Author Topic: Real estate exposure  (Read 1461 times)


  • Pencil Stache
  • ****
  • Posts: 700
  • Location: Raleigh, NC
  • CFO @ My Life
Real estate exposure
« on: December 23, 2014, 03:04:45 PM »
Recent life changes have made me re-evaluate my portfolio.  Currently, I am FI @ ~2.5% but have a long (30+) investing time horizon, and do not rely upon my portfolio for living expenses.

I joined a real estate brokerage and plan to ramp up my real estate investing projects within the next few years in addition to engaging in sales.  Currently my portfolio is in Rick Ferri's "Core Four" with 10% of domestic equities in Vanguard REIT Index, VGSLX (amounts to ~6% of total portfolio). 

With this much exposure to real estate (my income stream, investment portfolio and investment properties), would it make sense to get out of VGSLX? It is arguably the most diversified out of all three of them (local vs. national).  Theoretically, if the real estate market took a hit, my income stream would take a hit, but I also have other marketable skills and I'm young.  I'll probably have my hand in multiple projects anyway (whether real estate related or not).  My investment property values would take a hit but rents/cash flow would likely stay the same and I buy to hold anyway. 

I guess my question is... do you think this is insane, or okay given my situation outlined above?
« Last Edit: December 23, 2014, 03:06:32 PM by thedayisbrave »


  • Pencil Stache
  • ****
  • Posts: 726
  • Age: 35
  • Location: Colorado
Re: Real estate exposure
« Reply #1 on: December 23, 2014, 03:22:41 PM »
Personally I think you are fine. It's only 6% and like you said, its diversified nationally and not locally like you are.