I am about 45 years old and recently began to receive a US government pension, which I do not require for current expenses. The monthly payment is about a quarter of my living expenses, but due to my other employment the pension is "excess" and I want to save/invest it.
Half the excess will go to covering the expense of owning a house. The house is about 95% mortgaged at 2% annual rate until 2045, although it's rented out, the monthly cash flow considering all expenses is negative. Because of the 2% rate I will avoid making more than minimum payments on the mortgage, and not likely that selling the house is going to be sensible.
So, on the one hand I have a very stable known pension income, and on the other hand a large and growing sum completely tied in one property. I have a feeling that the location (Honolulu) may be more volatile or disconnected from US real estate markets but I'm not sure.
With the other half of my pension, at my age, what's a good strategy to hedge the real estate risk and ensure I have a stable retirement income in about 20-25 years.