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Asset Allocation: June 2007

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 About the author: 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.

{ 11 comments… add one }
  • The Financial Blogger June 21, 2007, 8:07 am

    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.

  • FrugalTrader June 21, 2007, 9:42 am

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

  • The Financial Blogger June 21, 2007, 10:34 am

    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.

  • FrugalTrader June 21, 2007, 10:39 am

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

  • bootsie June 21, 2007, 1:19 pm

    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!

  • FrugalTrader June 21, 2007, 1:29 pm

    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. :)

  • The Financial Blogger June 21, 2007, 2:19 pm

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

  • K.K. June 21, 2007, 11:05 pm

    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/

  • Mark September 1, 2010, 8:29 pm

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

  • FT FrugalTrader September 1, 2010, 8:43 pm

    @Mark, that is a good idea, I’ll put something together.

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