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If you’re “right 100% of the time,” then, A common line of thinking is to
as Templeton said, you have no need delegate 5%-10% of your portfolio to
for any such thing. Therefore, the chart real estate. And, to be sure, that’s a
above is rendered useless to you. good start. However, six major studies
done between 2005 and 2015 have
But if you’ve found that your sure- bumped those figures as high as 20%.
things haven’t been such sure- things
in the end, and some of your not-in- To cite one study in particular, look
a-million-years turned out to be the no further than the 2016 Wilshire
ones that got away… you might want Associates’ study commissioned by
to carefully consider the following Nareit, a REIT lobbying firm. Its results,
information. published as “The Role of REITs and
Listed Real Estate Equities in Target
While everyone’s ideal asset allocation Date Fund Asset Allocations” in the
model does differ to some extent or “2016 Wilshire Report,” found that
another, most experts agree that real 17% of an optimal portfolio should be
estate should take up a significant dedicated to real estate investment
sliver of your investment space. trusts.
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