I’m fairly conservative and mid 40’s. I’m old enough to have made every mistake in the book and young enough to recover. I used to aim for 1/3 Cash; 1/3 Property; 1/3 Stocks. I have tweaked things a bit based on throwing in inflation hedge and a play money allocation.
Here is where I am aiming (currently I’m too heavy in stocks and too light in RE)
30% Real Estate
30% Cash/short-term bonds
30% Stocks
5% Commodities (really just Gold)
5% Random (speculation, Stock timing, private business opportunities, stock options at work, etc)
Of the real estate … some can be REITS, but most aimed at investment property (for tax efficiency)
Of the stocks … at least 1/3 in foreign stocks, mostly large cap. The rest domestic.
If I really knew exactly what to do the 5% random would be a much larger chunk. But I have been around long enough that I don’t know everything.
