Why Buy REITs

Real Estate Investment Trusts (REIT) are similar to mutual funds but instead of investing in companies, REITs invest in real estate. REITs offer the trading flexibility of stocks and three additional primary benefits:

Diversification
Attractive Total Return Potential
A High Level of Income

As an investment class, REITs have historically performed fairly independently of the stock and bond markets, increasing their value in portfolio diversification, and improving a portfolios overall risk/reward profile.

REITs are required to distribute 90% if their taxable income to shareholders in dividends. REITs offer the option of providing a potential opportunity for growth of capital.

AARP Financial Inc. does not provide tax advice. Please consult a tax advisor for information pertaining to your particular situation.

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