Is my home considered equity?

Q – If a person were to have all their assets in these categories and in these percentages, would you have a great concern with the house (real estate) being the sole equity position in this environment?

House 44%

Cash 15% MM funds and Canada Savings Bond.

Fixed Income 41% Bonds, Preferred Shares, Mortgage Funds, and GICs.

Thank you so much for your help in the past. Read your books and MoneyLetter. – I.W.

A – Your house is not really “equity” in the sense you mean it here. Usually, we refer to asset mix as relating to investable assets. Your home should not be considered as part of your investment portfolio.

On that basis, you have no equity holdings. Your cash position is paying minimal yields and your fixed-income securities are at risk to an upward turn in interest rates next year. You need better diversification. – G.P.