I am trying to do a portfolio re-balance starting this year. To do that I want to divide my investments into different asset buckets. I have chosen to use the following type of asset allocation --
- Stocks (Large, Mid, Small)
- Fixed Income (long ,mid, short term)
- Real Estate
- Precious metals
In which asset class should I include a
- REIT mutual fund. Stocks (because its actual owing stock in different REIT companies) or Real Estate (because its actually tied to ups and downs of real estate)
- Certificate of Deposits. Bonds (because it pays a fixed amount every year) or Cash (because its principal amount will never decrease and I can withdraw it or use it anytime I want if I don't care about the interest penalty?)
- Self occupied house. Real Estate (because if needed I can sell and realize its value) or not consider it as an asset at all?
- Foreign stock mutual fund. Stocks(because its just like owning stocks of domestic companies) or create a new asset class for Foreign stocks?