Real estate investment trusts (REITs) are corporate enterprises that own and financially manage lucrative income-generating properties. These companies invite numerous small investors to buy shares in their profitable investment schemes via public subscription. The capital accumulated from the investors’ money enables the corporations to acquire a diverse range of real estate properties. These include residential apartment buildings, commercial office complexes, hotels, data centers, retail establishments, theaters, self-storage warehouses, and healthcare clinics. Thereafter-tax incomes from the sales or lease of these properties enable the companies to pay dividends to the investors. This allows investors to include risk-free real estate assets in their investment portfolios.
Jeffrey Small Arbor Financial – Should retirement savers invest in REITs?
Jeffrey Small is a prominent financial advisor from Florida whose expertise is in retirement planning and investment. He has 32 years of industry-based experience and is currently the founder of Arbor Financial Services of Florida, Inc. This is a famous Securities Exchange Commission registered investment advisory firm and a franchisee of the Retirement Income Store. He is even the best-selling author of “Turning Financial Planning Right-Side Up.”
According to the Jeffrey Small Arbor Financial team of specialists, most people want to maintain a financially stable lifestyle when they retire. However, the income they will get from their workplace pension schemes might be enough to achieve this objective. This is why many of them look for alternative investment options. The specialists suggest they should consider buying the shares of reliable real estate investment trusts (REITs) for the following reasons:
- Allows them to earn a steady stream of long-term returns from the corporations,
- Enables these investors to participate in the lucrative property market without incurring any risks,
- Ensures them to get regular dividend payments from these companies even during recessions,
- Provides the investors an opportunity to diversify the assets in their investment portfolios, and
- Assures them a steady appreciation in the capital value of the support they invest in with the REITs.
Moreover, an independent body of auditors, financial analysts, and directors closely monitors the financial performance of these companies in the stock exchanges. They even ensure the proper enforcement of all investor protection regulations to safeguard the retirement savers’ money.
How to invest in REITs?
Potential retirement savers can easily buy the shares of reliable real estate investment trusts from major stock exchanges. They can even purchase these shares from popular real estate investment trust mutual funds or exchange-traded funds (ETFs). However, private real estate investment trusts permit only institutional and accredited investors to invest their shares. The share acquisition procedure they have to go through is similar to purchasing corporate bonds and stock.
The Jeffrey Small Arbor Financial team of experts concludes that investing in real estate investment trusts is an ideal way for retirement savers to accumulate their wealth. However, they should first assess the companies’ market reputation and financial performance before investing. They need to thoroughly review the previous financial statements and earnings per share on the corporations’ official websites. Above all, the investors should read the fine print of the offers documents before deciding.