After reading Rob Carrick's article this morning on Blazingly simple portfolio with the issue about no bond allocation got me thinking. (dangerous)! Could one value ones real estate as a form of fixed income. The options of downsizing later in life or line of credit on debt free real estate ( if needed) could be a balance against dividend investing such as Canadian utilities, telecoms, banks, etc. So I guess my question is how do you handle real estate in asset allocation?