Asset Allocation – July 2016

We budget weekly and track our network/goals monthly.  So this is an easy post to write.

As of July 2016

Primary Residence – 57.3%

Rental – 18.7%

Retirement Accounts – 13.9%

Emergency Funds – 4.1%

Vehicles – 2.8%

Cash – 2.6%

P2P Lending – 0.3%

Investment Accounts – 0.4%

I wish our primary residence was a lot lower percentage and rentals/retirement accounts were a lot more.  I don’t really count our house as an asset because it doesn’t produce cash.  Sure, it would if we sold it, but we would have to rent or buy another one.  And the value that I assign to the house and rental is usually 80% of the Zillow Estimate as of the beginning of the year.

The P2P lending has been great.  I’ve been doing it for about 7-8 years now and it has consistently produced returns of 9-10% which I’ve verified with my own calculations.  I should do more of it, but we’re paying off student loan debt right now and that’s the plan we’re trying to stick to.

Emergency Funds are made up of a 6 month long-term emergency fund (meant to cover big medical emergencies or me getting layed off) plus a smaller short term emergency fund that covers the immediate term emergencies that come up a few times a year.


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