Does anyone here add Reits (eg VNQ) as a % to the 4 x25?
If so, what % and what does the rest of the VP look like?
If not, why is it not a good idea? Thanks
Reits as a % of the variable portfolio?
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- MachineGhost
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Re: Reits as a % of the variable portfolio?
Well, I suppose once they get undervalued again after the next pop, they could be a good buy. But they're nothing special and they act like equity in economic downturns, so they don't really do anything novel per se. And are included in VTI.
[img width=800]http://i61.tinypic.com/2mzysmx.png[/img]
[img width=800]http://i61.tinypic.com/2mzysmx.png[/img]
Last edited by MachineGhost on Sun May 17, 2015 4:59 pm, edited 1 time in total.
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Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Re: Reits as a % of the variable portfolio?
Well you may be right in that VTI has REITS, but VXF has a higher % in REITS, so I may just use this ETF for my Stock portion of the 4 x 25, instead of buying REITS separately.
Re: Reits as a % of the variable portfolio?
The mutual fund (PRPFX) currently has about 8.3% of total assets in REITS. That seems like a pretty good
number. Studies have shown that 10-15% is best, but these studies were done quite some time ago. I
believe REITS are less beneficial as a diversifier than in the past. I don't currently have a PP investment,
but have about 10% in REITS. As long as long term interest rates stay low, I am quite comfortable
holding REITS. I have done extremely well investing in them.
Norm
number. Studies have shown that 10-15% is best, but these studies were done quite some time ago. I
believe REITS are less beneficial as a diversifier than in the past. I don't currently have a PP investment,
but have about 10% in REITS. As long as long term interest rates stay low, I am quite comfortable
holding REITS. I have done extremely well investing in them.
Norm
- mathjak107
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Re: Reits as a % of the variable portfolio?
while i do not use the pp , VTI and VXF are part of my investment portfolio.
i don't usually own reits as part of my model since i have quite a bit in investment real estate in nyc.
but i speculate from time to time trying to make a quick buck with ICF a real estate etf.
i don't usually own reits as part of my model since i have quite a bit in investment real estate in nyc.
but i speculate from time to time trying to make a quick buck with ICF a real estate etf.