Saturday, February 4, 2012

Is Real Estate Part of Your Retirement Portfolio?

We have been told to diversify our portfolios. We have been told, and Boomers will know exactly what I am speaking of, to re-balance the risk in our portfolios as we age. We should go from a more risk prone investment to one that is more stable, even fixed as we head towards and eventually retire.

That's good advice and there are a number of ways to do exactly that. But one you may not have considered involves investing in real estate through the use of REIT or real estate investment trust.

As Will Rogers once said: "Don't wait to buy land, they aren't making any more of it.” But we have developed it making the ground far more valuable and those who own what’s on it, in some instances richer because of it. Over the last couple of days we have focused on your immediate real estate. While your home is not an investment per se, it is often considered one. Owning a hundred homes, or a shopping center or an office tower is an investment. The roof over your head, not so much an investment as a stewardship. You pay for it, you fix it up, you might even spend your entire life in it but at some point, you pass it on to the next owners. And you care for it in that manner, improving it so it is saleable to those next in line.

On this edition of the Financial Impact Factor Radio with Paul Petillo, Dave Kittredge and Dave Ng, we have someone who has focused his career on real estate as an investment: Brad Thomas. Mr. Thomas researches and writes on a variety of real estate based fixed- income alternatives including both publicly-traded and non-traded REITs or real estate investment trusts. He has a broad background in capitalization and sustainable net lease investing. Mr. Thomas currently writes weekly articles for Seeking Alpha and Forbes where he maintains “real time” research on many of the equity REITs and retailers.

Among the topics Brad explained included the risk of owning these investments, how they are structured and the dividends they offer, how to analyze their worth and most importantly, how these investments react to various economic forces. REITs have been around for over five decades and are a widely suggested part of a diversified portfolio.


This is a must listen show for not only the curious investor but those looking to better understand the subject of REIT investments.


Listen to Financial Impact Factor Radio with your hosts:
Paul Petillo of Target2025.com/BlueCollarDollar.com and Dave Kittredge and Dave Ng of FinancialFootprint.com

The show is broadcast daily, online at 6amPST/9amEST.

4 comments:

RELady-ITpro said...

This is the time to buy, if you have any money for down payment, if you have good credit or any cash on hand; it is the best time to buy and invest in Real Estate.

Allan said...

It should be! Investing on real estate is a good way to diversify a retirement portfolio. Your home can be your source of investment. At the same time, it would be a wise decision since home expenses are tax deductible. You’ll enjoy regular income without having to worry about working.

Allan Getter

Terry said...

I would like to share with your readers - a way to use their 401K - traditional IRA dollars to use as a down payment on an already occupied cash flowing real estate investment. I guided my mom through the process and now she gets an additional $300.00 a month in her pocket - all from stripping out $14,000.00 from her Traditional IRA - tax free after I paid her $2,000.00 for the triggered tax upon withdrawing the funds. I would like to share my site with yours readers - I'm at http://noiratax.com Please endorse me - tthis is more about helping folks than me trying to make a buck.

Terry said...

I would like to share with your readers - a way to use their 401K - traditional IRA dollars to use as a down payment on an already occupied cash flowing real estate investment. I guided my mom through the process and now she gets an additional $300.00 a month in her pocket - all from stripping out $14,000.00 from her Traditional IRA - tax free after I paid her $2,000.00 for the triggered tax upon withdrawing the funds. I would like to share my site with yours readers - I'm at http://noiratax.com Please endorse me - tthis is more about helping folks than me trying to make a buck.