I have rebalanced out of VGSIX (REIT index fund every year since I have held it (since retirement). NO complaints on that issue. However, I have come to realize that holding
the Total Stock Market Index (VTSMX) 35% of my total portfolio,
NAESX (Small Cap Index) at 8% of total portfolio,
VGSIX (REIT index) at 10.5% of total portfolio
gives me more than 10% of my allocation to REITS
when the proportion of REITs in the other two funds are added in. (Rest of portfolio is 10% Total international, 34% Total Bond Market. Balance is in Prime MM for near term use.
Since I am 5 years into retirement I think it prudent to increase my Bond allocation by reducing exposure to REITs.
What percent of REIT should I sell and add to BONDS to bring the true allocation to 10%? 3%? 4%? 5%? etc.