59. “98% of our net worth is in real estate. Are we in trouble?”

Money For Couples

Ramit Sethi

Relationships, Society & Culture, Investing, Business

4.6 • 3.1K Ratings

🗓️ 6 September 2022

⏱️ 57 minutes

🔗️ Recording | iTunes | RSS

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Summary

Georgia and James bring a different problem to the table than we’re used to hearing about. In this one, we zoom in on where, exactly, their net worth has come from… and the real risks of these decisions. Having done well in the real estate market, Georgia and James just closed on a fourth property. The glaring issue is that they’re all located in the same neighborhood, amping up the risk of this investment class quite considerably. Georgia is becoming increasingly anxious in the shadow of this risk, urging a diversification from their overloaded 98% commitment to housing. James is not unwilling to hear the argument, which makes this episode more direct and tactical—I love it. There’s a lot to learn here. The biggest question we can ask in this case: Why are they even doing this? What is the end goal? Their answer paints a clear picture of what they need to do. Connect with Ramit Website Instagram Twitter Facebook YouTube Linkedin If you and your partner have a money issue and you want my help, I occasionally select a couple to work with, free of charge. Apply for my help here. Produced by Crate Media.

Transcript

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0:00.0	Hey, before we get back to the episode, I want to make sure you know about something that
0:03.6	I'm sending out this Saturday.
0:06.4	Have you ever wondered how to use your money to buy back your time?
0:09.9	This is something that people love to talk about, but very few people actually spend their
0:14.6	money to get their time back.
0:17.4	I want to show you 20 ways to buy your time back this Saturday from all areas of life
0:23.2	and all different income levels.
0:25.9	This Saturday, September 23rd, you can only get it at iwt.com slash podcast newsletter
0:32.3	that's 20 ways to buy back your time.
0:34.4	I'm going to show you this Saturday.
0:36.1	Now let's get back to the episode.
0:41.3	What is the percentage of your portfolio that is in real estate right now?
0:46.3	Like 98% or within just a couple of miles of each other.
0:51.2	We have all of our eggs in one basket and it makes me feel exposed.
0:57.4	The intention is to balance the diversification of our investments.
1:01.6	Ten years ago we were getting our groceries at the food bank.
1:05.2	I don't want to be there again and I don't want my kids to have to be there.
1:09.6	I'm not totally convinced that at least right now it makes the most sense for us to transition
1:17.3	the equity and a property into an index fund.
1:22.3	I very often tend to ignore the risk altogether.
1:26.3	It makes me feel entirely responsible for being the person to clean up messes if they happen.
1:35.0	To plan for them to try to buffer for them and it's really hard to plan for managing
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