Real Estate Investment Trusts (REITs) are frequently chosen by retirees for their consistent income, which aligns with lower risk tolerance. REITs draw capital markets for extensive real estate investments, mandating a 90% profit return to shareholders, thus appealing to dividend-seeking retirees. While interest rate changes typically donât affect rental income based REITs, the focus on specific commercial real estate sectors enables better management and stability. REITs also provide tax advantages when held in Roth IRAs, along with potential for capital appreciation.
Stability and dependability of dividend income is generally of greater importance to retirees than higher yields in their portfolios.
REITs whose income is derived from rent rolls are usually impervious to interest rate fluctuations, making them a reliable source of income.
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