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Would appreciate some help in developing a philosophy as to where to place income real estate (not REITS) into a total portfolio by %. I understand not to include our own home in the equation.

These properties create a modest income stream and some tax advantage's. If we liquidate them, we would trigger tax consequences. With the market generally softening around the country we are inclined to sit tight and wait for some improvement because they represent a safety net to our pensions and main portfolio.

We have diversified our asset classes in our portfolio and are comfortable about Large Cap, Small Cap, and International mutual funds + cash/bonds making up a 60%/40% mix (age 62 and retired).

Like the asset distribution phase of retirement, hard real estate as portfolio percentage is not often discussed. We would appreciate some insight and hopefully trigger a discussion as many boomers will inherit property and find themselves facing the same situation.

Keep? What %? Sell? When? Why? Sell and reinvest? Pass on to children?
1031 to a TIC vacation location that can be rented if not used?

Thanks for your wisdom.
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