Question
If John takes a concentrated position of $250,000 into real estate (cabin), all of the following are concerns about meeting Johns $5,000,000 retirement objective EXCEPT:
If John takes a concentrated position of $250,000 into real estate (cabin), all of the following are concerns about meeting Johns $5,000,000 retirement objective EXCEPT:
Group of answer choices
In an inflationary environment, real estate is a poor choice if John plans to rent out the condo.
The remaining $750,000 and $25,000 annual savings should be limited to assets that are not highly correlated with real estate to avoid taking an over concentrated position in real estate.
Real estate has low liquidity and is not readily available if John needs the equity.
Real estate requires maintenance and deteriorates over time, which could negatively impact the value and returns of the concentrated position in real estate.
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