Asset Allocation: June 2007

Written by FrugalTrader on Jun 21, 2007 filed under Portfolio

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:

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

That’s all for now! Cheers!

9 Comments, Comment or Ping

1. The Financial Blogger

It might seem logical, but it is very smart of you to take your money out of the market before building your house. Most people would think of it but will be tempted to stay in the market another couple of months just to make that “potential extra”.
Do you spread your equity among different markets or are you concentrated in CDN?
Cheers,
FB.

Jun 21st, 2007 @ 8:07 am
2. FrugalTrader

Hey FB! I do hold some US and foreign assets, but I’m about 80% Canadian. How about you?

Jun 21st, 2007 @ 9:42 am
3. The Financial Blogger

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.

Jun 21st, 2007 @ 10:34 am
4. FrugalTrader

FB, you are only turning 26? I would have thought that you were much older… no offense. :)

Jun 21st, 2007 @ 10:39 am
5. bootsie

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!

Jun 21st, 2007 @ 1:19 pm
6. FrugalTrader

LOL! That’s not what I meant, I have no idea what FB looks like. :)

In his “about” page, it says that he is married with kids. I guess I expected married with kids to mean older than me. :)

Jun 21st, 2007 @ 1:29 pm
7. The Financial Blogger

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

Jun 21st, 2007 @ 2:19 pm
8. K.K.

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/

Jun 21st, 2007 @ 11:05 pm