Have you ever heard of a REIT? These are something that you should think about adding to your IRA’s or 401k’s. They have the potential to provide huge gains from nothing more than just owning them. REITs are company that have to pay out most of its income to its share holders. What does this mean to you? big dividends. We are talking dividends from 8-20%.
A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages.
REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate. (source: www.investopedia.com)
There are also different type of REIT’s, but we will be looking at a particular kind. Equity REITs: These are company’s that invest in and own properties (typically commercial). Their revenues come pricipally from their properties rents. Since they are required to pay out a large portion of their income to shareholders, you get nice fat juciy dividend checks.
Possible Suggestions Include
Annaly Capital Management Inc (NYSE: NLY) - Yeild 15.42%
American Capital Agency Corp- (NASDAQ: AGNC) – Yeild 19.74%
To really boil it down for you it’s like being a Landlord, but not having to be a landlord. You get the benifit of owning real estate without having to be a landlord. With property prices taken a beating the last couple years, now may just be the chance you have been looking for to get into realty. Property prices and rents are sure to increase as home sales and prices come back. REIT’s are a great play for when the housing market bounces back, which may be sooner than you think.
Retire at the age of 45? Can this even be done? Yes, and No. By making smart decisions early it is possible to retire at 45. Start saving today and you could possibly be able to quit that 9-5 job quicker than you thought. I was told the other day that there is no way you could possibly quit working at the age of 45, unless you somehow had some sort of rare luck bestow upon you. I tried to explain to this person that retiring is just a numbers game. That being able to retire is all about numbers, more specifically your bank acount numbers and how much is in them. Follow these simple steps will help you be on track for early retirement.
