Discussions among investors and in the financial press on where to put one's money typically focus on stocks, bonds, mutual funds, and cash or cash equivalents (Treasury bonds, money markets, certificates of deposit, etc.). Often over-looked is real estate. That's not surprising, since it has been in a slump since the mid 1980s, when overbuilding drove down prices and changes in tax laws decimated tax shelters. A recovery is under way, though, and some experts think real estate will do very well in the next few years. They recommend that even small investors consider devoting roughly five to 10% of their portfolio to real estate. The following are some ways to do so: Your home. Many people already own real estate—their home. In fact, it often is their single most valuable financial asset. Yet, financial planners usually don't count a home as part of an invest-ment portfolio because people normally don't use it as an invest-ment—it is not intended to generate income. It is a place to live in. While they may hope to sell it for a profit if and when they move some day, they typically roll the profits over into a more ex-pensive home.
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