I invest in several asset classes in an effort to diversify and hedge against economic downturns. When it comes to allocating a portion of my monthly income for investments, I generally invest in each asset class in the percentages shown below.
Over time I alter my allocation based on my goals, overall economic conditions, and what I’m expecting to see in the overall economy in the near term. Here are the general allocation rules I use when splitting up my investment income:
Real Estate: 25%
P2P Lending: 10%
Precious Metals: 5%
I cover my income allocation, my diversification strategy, the assets that I invest in, and key factors in achieving financial freedom and wealth in my book Perpetual Wealth.