Ideal Portfolio Weighting

Hi,

I was just wondering what your ideal portfolio weighting is currently?

e.g. 33% property 33% equities 33% cash?

I would be interested to hear the various strategies people are currently using..

Cheers.

 

Hi MasterCheif,

Everybody's "ideal" portfolio weighting is different.
This can usually be calculated by finding out their risk profile.

Cheers,

Dan

 

would be interested to hear some examples - assuming high risk?

 

Ideal? it will vary but my current position is
80% property, 18% cash, 2% shares
My super is 100% in cash
Cheers

 

for anyone who has property, this throws out the % quite alot....

at the moment i would have 90+ % in property due to the large purchase price and fantastic gearing. However if you looked at initial outlays (inc super), id have like 40% property weighting & 5% cash....

gets really difficult when you start talking about gearing... its easy to have a $mill in property (2 or 3 houses and 200k down at 80% LVR, 50k down with 95%) but to get to $mill shares, at a safe LVR you need 150% more than the 80% LVR & 1000% with the 95% LVR...

 

Why such a small amount of shares? Not really interested to hear "as is" but ideal - what you would like it to be..

 

I've got what I think is pretty ideal (for now at least) and also fairly high risk:
15% Australian Large Cap Shares
15% Australian Small Cap Shares
10% European Shares
15% Australian Property
10% European Property
10% Asian Property
15% Emerging Markets
10% Commodities

Almost all though ETFS. Includes geared amounts. Does not include super (which is not much different - but without the variety - and is only a very small amount).

Would be interested to hear people's comments.

 

MasterCheif

There is no such thing as an ideal mix.

The percentages for me will vary as we move through each cycle
and could at times tip in favour of properties and other times in favour of shares.

Why such a conservative mix now?
Because I have done my own research and it's clear to me that now is not a good time to risk my property equity or my cash for questionable returns.

I still buy some shares but only because I buy them with pretax $
and also because it's a "buy 1 get 1 free" scheme.
Otherwise I wouldn't bother, my cash is safer sitting in my offset account.

Cheers

 

super = 100% cash!!!!! what are your doing???? lol

not trying to time the market are you?...


me..... 70% Aust Shares, 20% international & 10% property in super
100% Aust shares outside of super

 

Not a bad mix naz from a financial planners prospective (for a high growth investor of course). A little more weighting towards property than I'd recommend, but that being said, you should do well for the long run.

 

It's called capital preservation.
I will switch over to the balance fund when the dark clouds disappear,
in 12 months or so.
Cheers