real-estate

Should You Invest in Real Estate for Your Retirement?

Real eState

Many financial planners believe that income-producing real estate, whether it's a physical asset like an apartment building or an investment in a real estate investment trust or mutual fund, is an important aspect of a well-performing retirement portfolio.

According to a survey performed by the Transamerica Center for Retirement Studies between November 2020 and December 2020, while 75% of retirees keep their money in bank accounts or CDs, only 12% own real estate other than their home residence for investment.

"We discovered that portfolios with a combination of equities, bonds, and real estate outperform other portfolios in our research," said Ken. H. Johnson, Ph.D., a real-estate economist at Florida Atlantic University. "Owning real estate gives you a better risk/return profile."

The "ideal mix" in a portfolio, according to Dr. Johnson, is 50 percent real estate, 30 percent stocks, and 20 percent bonds.

He claims that this formula is sufficiently diversified to offer retirement stability. Your own residence, an investment property, or a combination of both can be included in the real-estate component.

But what type of real estate? And should you invest directly in income-producing hard assets, like residential rental property or commercial property, or make more passive investments, such as a REIT, by purchasing publicly traded shares or investing in a mutual fund?

Joe Pelayo, a commercial real estate broker in Fort Lauderdale who works with individual investors, recommends warehouse properties to his clients looking to invest for retirement because they usually require little active management.

Similarly, medical-office buildings also have long-term tenants and often have triple-net leases, he said, where the tenants pay expenses and assume management responsibilities for the building. Residential investment takes more work.

YOU MAY ALSO LIKE

Trading Indics

How To Rebrand Stocks Market Indices

The field of trading is getting more popular day by day. The demand for trading has increased the market size, which has made the trading easier and profitable. The market is flooded with various type...

Read More..
children's privacy

California to become first state with children's privacy bill

California will become the first state in the nation to enact a law that protects children's privacy online. No doubt, this bill will bring a lot of positives! Children will now be safe from unwan...

Read More..
Uber

Uber Data Breaches : Puts Fire On Social Media

Uber's latest privacy scandal has put the company on the hot seat, with lawmakers and customers alike wondering how the ride-sharing service handles sensitive personal data. The news comes just mo...

Read More..
best-university

BEST USA UNIVERSITIES 2022-2023

  There are more than 80 thousand students who take admission in different universities in America every year. More than 10 thousand are international students. Since the last 2 years US unive...

Read More..

Our Clients