ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

I follow the 3 Buckets strategy where I divide my net worth into 3

• Bucket 1 – liquid assets eg cash. There serve as emergency funds so that I do not have to sell the volatile assets at the wrong time.
  
• Bucket 2 – safe assets where the principal is protected eg govt bonds. These serve as my floor net worth in case I lose all my risky assets
  
• Bucket 3 – risky and volatile assets eg stocks, properties. These are assets with the better returns but are more risky or volatile.
  

I have 2 years of annual expenditure in cash or near cash under Bucket 1.  I have another 8 years of annual expenditure in Bucket 2

The rest of my net worth are in Bucket 3 with equal amount in stocks and real estate.
If you work out the numbers about slightly less than half of my net worth is in stocks.

hi i4value,
If i remember correctly, you mentioned you are 70 years old this year and ~<50% of networth in stocks sound about right IMO.

For real estate, do you actually own the properties? Are they Malaysian real estate? Malaysian property has been in doldrums since around 2013/2014 (almost a lost decade). If the politics get itself right, and ironically a Unity Government might just be more stable than a single coalition government, there may be a good chance that Msian property is good proxy bet?

If you refer to my earlier post, you will find that if you have a 30 years investment horizon, real estate gives you better returns than the KLCI. Yes, I have some real estate but this is more for inflation protection purposes than to make money.