When investors discuss the stock market, they may use terms like “trading,” “bear market,” “bull market,” “correction,” “volatility,” and more. So if you participate in the market, aspire to, or just want to keep up with current economic conditions, it’s a good idea to develop your knowledge of how the market works.
Real Estate Investment Trusts continue to show sustained popularity with investors seeking income and returns. In fact, the Wall Street Journal reports that the funds managed more than $224 billion by the end of 2021. Among the motivations for shareholders are the desire to own commercial real estate, the pursuit of truly passive income, and returns that have often outpaced increases in the cost of living. Some investors who have held real estate and managed it actively prefer to transition to REIT participation as a way to maintain their real estate involvement without the need to remain involved with tenants directly.
Investing for retirement is a vital topic for many people since they may be seeking to accumulate wealth or grow income in advance of their future retirement plans. However, since greater rewards typically involve accepting higher risks, investors must calculate their risk appetite and tolerance, which change over time.
To explore whether Real Estate Investment Trusts (REITs) are fixed income investments, it will be helpful first to examine what a REIT is and what a fixed income investment includes.
For many investors, yield drives their investment choices. With public real estate investment trusts (REITs), yield is expressed in the form of quarterly or annual dividends that are a percentage of the REITs current share price on a major stock exchange.
For many investors, real estate is an alternative asset class to consider as part of a diversified portfolio.