Real Estate Investment Trusts or REITs have become a popular way for investors to capitalize on what many believe to be an opportune window to invest in commercial real estate. REITs are companies which own and operate large-scale portfolios of commercial real estate. REITs pool the money of investors and, dependent on the REIT’s strategy, use the proceeds to either:
Dependent on the REITs strategy, income is generated from:
By law, REITs distribute at least 90% of the taxable income back to investors.
None of these specific investment classes are recommended by durableincome.com, however, better understanding of them will help you prepare for a more secure retirement. Discuss each asset class or particular investment carefully with your financial advisor before making any investment decision.