A♣ — Asset Allocation Matters

Asset allocation matters - It's a free lunch that you can't afford not to eat

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5 Responses

  1. Avatar Dave says:

    Hi Mike

    Do you recommend including your primary residence in the asset spreads. My gut feeling is not to as you need to live somewhere but would be interested to hear your thoughts.

    • Mike Rawson Mike Rawson says:

      Hi Dave,

      I include it, but I know that a lot of people don’t. I have two reasons:

      1 – I live in central London, so I could sell up and move to a much cheaper area, retaining 80% of the money.
      2 – I want to get my asset allocation right, and if I left property out, I would most likely under-allocate to equities.

      But at the end of the day, it’s a personal decision, like most things to do with asset allocation.

  2. Avatar Musa says:

    Hello Mike ,
    amazing blog, i was wondering if you can elaborate more on this :
    Do you mean that i should be starting putting my money or prioritize my money in the stock and then what’s left should be directed into cash and house mortgage for example?

    (People usually begin with cash, and then add a bit of real estate via equity in their home, then they add some stocks.)

    • Mike Rawson Mike Rawson says:

      I’m not being prescriptive, just describing what most people do – cash savings, then buy a property, then think about the stock market (not everyone gets that far).

      Your allocation will be driven by your goals – if you want to reach financial independence, you’ll need a big allocation to stocks.

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A♣ — Asset Allocation Matters

by Mike Rawson time to read: 3 min
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