There has been a lot of talk of Asset Allocation around the blog world so I thought I’d join in. Based on my current portfolio, here is my asset mix of my investments (not including savings and pension):

Total Portfolio: $184,773 (obtained from my May Net Worth Statement)

  • Cash: $32,000 (17.3%)
  • Bonds: $3,870 (2.1%)
  • Equities: $59,080 (32%)
  • Real Estate (equity): $89,823 (48.6%)

I knew that real estate made up a significant portion of my portfolio, but I didn’t realize that it made up close to half!

If I take real estate out of the equation, here is what my asset allocation looks like:

Portfolio: $94,950

  • Cash: 33.7%
  • Bonds: 4.1%
  • Equities: 62.2%

I am holding a significant amount of cash because of two reasons:

  1. I expect a pullback in the markets
  2. I plan on withdrawing from my non-registered portfolios for larger down payment on my next home.

That’s all for now! Cheers!

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FT

FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.
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Mark
14 years ago

It’s been 3 years since this post, would be fun to see an update of your asset allocation!

Ask the Readers: Is Your Home an Investment? | Million Dollar Journey
15 years ago

[…] addition, I think that real estate should be counted towards your total asset allocation.  That is an asset allocation consisting of: stocks, bonds, real estate and cash.  Renters can […]

K.K.
17 years ago

Wow, thats a lot of cash holdings. I guess you do need liquidity for your goals. ICICI Bank Canada I noticed is offering 4.5%, also they have a referral bonus of $20, Max $500. Give me a shout if you want to open an account with this bank. :)
http://www.icicibank.ca/

The Financial Blogger
17 years ago

Yup, I’m just a kid :-)
I’ve been with my wife since I was 15… she my one and only!

bootsie
17 years ago

lol, he does look more mature doesn’t he? ;)

Though you’re surprised that RE makes up a significant portion of your portfolio I’d guess that it’s still much lower than the average Canadian in your age category.

It helps when you don’t live in Vancouver or Toronto doesn’t it?! We are probably in a similar situation though I’ve never actually run the numbers. Maybe I’ll go do that!

The Financial Blogger
17 years ago

FT,
As I bought my house last November, I had to sell all my equity at this point to provide sufficient cash down (25% is hard to get when you are 25!).
So now, I’m building a new portfolio, 100% CDN market for now, looking to buy more US stocks as they are not overheating as we are. I don’t know much about foreign market, not enough to invest in them yet though…
Cheers,
FB.