Hello Capitalists,
Over the last six months I have been getting a 30.28% average rate of annual return on my REIT Index Fund. That has been fantastic. If you target a 15% rate of return composited with reinvesting dividends and monthly contributions at the same equal amount(s), you will double your money every 5 years.
Besides ETFs, REITs may be the right ticket in this economy, which has had some upside thanks to the positive effect of a Republican Congress and also due to the “tax break” to the American consumers due to the fracking and shale revolution (zero thanks to Obama). But at the same, while Iran and Venezuela and Russia will be undercut by this revolution, there is also many who lost in the energy sectors who had heavy investments. I warned some of my friends, and they like me sold high on the energy stocks in oil and gas, staged the money into “holding buckets” such as date targeted mixed funds, and now buying using dollar cost averaging oil stocks in tiny bundles on the cheap (the obvious sell high, buy low). But most of the money is being moved into REITs and it is really working out well.
I would advise anyone who takes the responsibility to plan for their own future in investments, savings and wealth, to look a hard look at REITs. Below is the “text book” explanation of what they are.
But one WORD OF WARNING.
There is something called “non-traded REITs” (not exchanged). These are not REIT funds such as an index. I am talking about REITs (most of which are) TRADED ON MAJOR STOCK EXCHANGES. There are also non-listed and non-traded REIT offerings from what is really a scam by devious “advisors” who want to take advantage of typically a retired elderly person, but anyone who is stupid enough to fall for that scam. Only explore REIT funds traded on the stock exchange.
------ TEXT BOOK DEFINITION -----
A REIT, or Real Estate Investment Trust, is a company that owns or finances income-producing real estate. Modeled after mutual funds, REITs provide investors of all types regular income streams, diversification and long-term capital appreciation. REITs typically pay out all of their taxable income as dividends to shareholders. In turn, shareholders pay the income taxes on those dividends.
REITs allow anyone to invest in portfolios of large-scale properties the same way they invest in other industries – through the purchase of stock. In the same way shareholders benefit by owning stocks in other corporations, the stockholders of a REIT earn a share of the income produced through real estate investment – without actually having to go out and buy or finance property.
Most REITs are traded on major stock exchanges, but there are also public, non-listed and private REITs. The two main types of REITs are Equity REITs and Mortgage REITs. Equity REITs generate income through the collection of rent on, and from sales of, the properties they own for the long-term. Mortgage REITs invest in mortgages or mortgage securities tied to commercial and/or residential properties.
Today, REITs are tied to almost all aspects of the economy, including apartments, hospitals, hotels, industrial facilities, infrastructure, nursing homes, offices, shopping malls, storage centers, student housing, and timberlands. REIT-owned properties are located in every state and support one million U.S. jobs annually. U.S. REITs have become a model for REITs around the world, and now more than 30 countries around the world have adopted REIT legislation.
Over the last six months I have been getting a 30.28% average rate of annual return on my REIT Index Fund. That has been fantastic. If you target a 15% rate of return composited with reinvesting dividends and monthly contributions at the same equal amount(s), you will double your money every 5 years.
Besides ETFs, REITs may be the right ticket in this economy, which has had some upside thanks to the positive effect of a Republican Congress and also due to the “tax break” to the American consumers due to the fracking and shale revolution (zero thanks to Obama). But at the same, while Iran and Venezuela and Russia will be undercut by this revolution, there is also many who lost in the energy sectors who had heavy investments. I warned some of my friends, and they like me sold high on the energy stocks in oil and gas, staged the money into “holding buckets” such as date targeted mixed funds, and now buying using dollar cost averaging oil stocks in tiny bundles on the cheap (the obvious sell high, buy low). But most of the money is being moved into REITs and it is really working out well.
I would advise anyone who takes the responsibility to plan for their own future in investments, savings and wealth, to look a hard look at REITs. Below is the “text book” explanation of what they are.
But one WORD OF WARNING.
There is something called “non-traded REITs” (not exchanged). These are not REIT funds such as an index. I am talking about REITs (most of which are) TRADED ON MAJOR STOCK EXCHANGES. There are also non-listed and non-traded REIT offerings from what is really a scam by devious “advisors” who want to take advantage of typically a retired elderly person, but anyone who is stupid enough to fall for that scam. Only explore REIT funds traded on the stock exchange.
------ TEXT BOOK DEFINITION -----
A REIT, or Real Estate Investment Trust, is a company that owns or finances income-producing real estate. Modeled after mutual funds, REITs provide investors of all types regular income streams, diversification and long-term capital appreciation. REITs typically pay out all of their taxable income as dividends to shareholders. In turn, shareholders pay the income taxes on those dividends.
REITs allow anyone to invest in portfolios of large-scale properties the same way they invest in other industries – through the purchase of stock. In the same way shareholders benefit by owning stocks in other corporations, the stockholders of a REIT earn a share of the income produced through real estate investment – without actually having to go out and buy or finance property.
Most REITs are traded on major stock exchanges, but there are also public, non-listed and private REITs. The two main types of REITs are Equity REITs and Mortgage REITs. Equity REITs generate income through the collection of rent on, and from sales of, the properties they own for the long-term. Mortgage REITs invest in mortgages or mortgage securities tied to commercial and/or residential properties.
Today, REITs are tied to almost all aspects of the economy, including apartments, hospitals, hotels, industrial facilities, infrastructure, nursing homes, offices, shopping malls, storage centers, student housing, and timberlands. REIT-owned properties are located in every state and support one million U.S. jobs annually. U.S. REITs have become a model for REITs around the world, and now more than 30 countries around the world have adopted REIT legislation.