For those who have been working for some time, one question that comes up to me often when I speak with these people is the question of asset allocation. How much of my portfolio should I put in REITs?

To tackle the question, let’s first start with how much you should put in stocks, which is an umbrella term that covers REITs.

One school of though advocates putting a percent into bonds based on your age.

If you’re 30 and have S$10,000 to invest, put S$3,000 into bonds. If you’re 40, put 40% so on and so forth. The remainder goes to stocks.

Another school of thought advocates 4 buckets

Ultra aggressive: 100% stocks, 0% bonds Moderately aggressive: 80% stocks, 20% bonds Moderate growth: 60% stocks, 40% bonds Conservative: Less than 50% in stocks.

Yet another school of thought suggests you allocate based on your life stage.

Fresh graduate? 100%...