(10) Real Estate Investment Trusts (REITs)
It is another important & best retirement investment options for retirees. A real estate investment trust is a company that owns & operates income-producing real estate properties.
REITs usually own several types of commercial properties such as office & apartment buildings, warehouses, hospitals, shopping centers, hotels/motels & even timberlands.
Some REITs may also provide financing to real estates. They are designed to work very much similar to a mutual fund. A team of professionals manage the property, collect rent, pay expenses, collect a management fees & distributing the remaining income in form of dividends to investors.
REITs can be divided into two types:
(a) Publicly traded REITs
These typically trade on stock exchanges & any investor can buy them with a brokerage account.
(b) Non-Publicly traded REITs
These are mainly sold by brokers or registered representatives on commission basis.
Some of the key statistics to examine in a REIT include Net Asset Value (NAV), Funds from Operations (FFO), & Adjusted Funds from Operations (AFFO).
REITs are one of the most appropriate & best retirement investment options. You should use them as a part of a diversified portfolio inside a tax deferred retirement account such as IRA. Investors are advised to consult a professional adviser before investing in this investment option.
You can plan for a safe & secure retirement by carefully analyzing pros & cons of best retirement investment options one-by-one before making a final decision. It will be much better option to build a mixed portfolio of investment options by consulting a qualified & well-experienced investment professional.
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