True Asset Allocation
Mastering the Balance Between Liquid Capital and Hard Assets
Features & Options
The Concept True Asset Allocation goes beyond simple stock-and-bond diversification. It is the art of synchronizing your financial portfolio with your physical holdings to create a resilient, self-sustaining ecosystem. At Peasant Finance, we help you bridge the gap between digital wealth (TFSAs, RRSPs, RDSPs) and tangible sovereignty (Real Estate, Property Cash Flow).
Diversification of Form
Balancing paper assets with physical real estate to hedge against inflation and market volatility.
Cash Flow Integration)
Using rental income or dividends to systematically fund tax-sheltered accounts without eating into your lifestyle.
Tax Efficiency
Optimizing the location of every dollar to minimize the “tax drag” on your lifetime net worth.
Risk Mitigation
Ensuring that a downturn in one sector (e.g., Toronto housing) is balanced by growth in another (e.g., global equities).
Long Term Horizon
Funds must stay in the plan for 10 years after the last grant to avoid “clawbacks”.
The "Peasant" Edge
Our unique approach to leveraging low-barrier property management strategies to fuel high-velocity financial growth.
Placeholder
Placeholder
Placeholder
Analyze your portfolio strength with our Allocation Architect below
Beyond the Building: Why Landlords Need a “True Asset Allocation” Strategy
Owning a rental property in Ontario is one of the most powerful ways to build a “fiefdom” of wealth. However, many landlords fall into the trap of being “house rich and cash poor.” If 100% of your net worth is tied up in brick and mortar, you are vulnerable to interest rate hikes, legislative shifts, and liquidity crunches.
At Peasant Finance, we believe in True Asset Allocation: the strategic synchronization of your real estate portfolio with tax-sheltered financial vehicles.
The Three Dimensions of Your Portfolio
To achieve true financial sovereignty, your wealth must be distributed across three distinct dimensions:
-
The Growth Engine (Real Estate): These are your “hard assets” that provide leverage, appreciation, and the raw cash flow needed to fuel the rest of your strategy.
-
The Tax Fortress (Registered Plans): This includes using rental profits to maximize your TFSA, RRSP, and especially the RDSP for those with eligible family members—turning taxable rental income into tax-free or government-matched growth.
-
The Liquidity Bridge (Cash & Equities): Ensuring you have “dry powder” to handle property maintenance or market downturns without being forced to sell a property at the wrong time.
The “Peasant Finance” Flywheel
The magic happens when these dimensions work together. Instead of letting rental profits sit stagnant in a low-interest checking account, we help you implement the Fiefdom Flow:
Generate: Collect rent from your multi-unit or rooming house properties.
Redirect: Channel a strategic portion (e.g., $42/month) into high-impact accounts like the RDSP to trigger massive government matches.
Protect: Use structures like Henson Trusts alongside your RDSP to ensure that your real estate legacy doesn’t disqualify your heirs from essential support like ODSP.
Stop Guessing, Start Allocating
Is your portfolio balanced, or are you over-leveraged in one area? True diversification isn’t just about owning different stocks; it’s about balancing your physical “fiefdom” with your financial “fortress.”
Calculate Net Equity
For Real Estate, do not enter the full market value. Subtract your mortgage and enter your Net Equity (Market Value – Debt).
Why: This ensures your allocation isn’t skewed by “fake” wealth tied to a bank loan.
Categorize by "Fortress"
Group your liquid assets by their tax shelter: TFSA, RRSP, RDSP, or Non-Registered.
Why: Knowing where your money sits is just as important as what it is invested in for long-term tax efficiency.
Input Current Totals
Enter your current balances as of today’s date for the most accurate snapshot.
Why: Asset values change fast. An old snapshot is a dangerous map.
Analyze the Balance
Review the generated chart to see if you are over-concentrated in one area (e.g., 90% Real Estate).
This view helps you decide where your next dollar should be deployed to reduce risk.
True Asset Allocation Lab
Mapping Geographic Exposure & Portfolio Management Costs
| Account Type | Asset | MER (%) | Amount ($) | CDN Eq (%) | US Eq (%) | Intl Eq (%) | Bond (%) | Cash (%) | |
|---|---|---|---|---|---|---|---|---|---|
“Independence is a heady draught, and if you drink it in your youth, it can have the same effect on you as young wine.”