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The Best REIT to Buy for 2020: Our top REIT pick could climb to five times its current price – and these shares yield a solid 7.9%, too. Get the pick now…
A million dollars just isn't what it used to be. For decades, investors believed $1 million was enough to ensure a comfortable retirement.
With that kind of money in the bank, you could generate plenty of income to pay for expenses suitable for almost every lifestyle.
That was before the financial crisis ruined the bond market.
Today, $1 million invested in "safe" government securities provides no more income than what social security provides for those living beneath the poverty line.
That's no retirement, and investors are rightly worried.
That's a big reason why I love the REIT market today.
It's the only game in town – and really the only option for investors looking for that comfortable retirement lifestyle.
With interest rates at historically low levels and likely going lower, REITs are paying attractive dividends. In fact, they pay the type of dividends that used to be available in the bond market.
While a 5% dividend won't get you all the way to easy street, it is a far cry from the 1.5% Treasury yields pay right now.
And 5% is what the best REIT available today pays investors who buy the stock now.
Sure, there are REITs that pay a far higher rate of return. But push too hard for higher rates, and there is a risk that principal will be lost.
That 5% is markedly better than most alternatives. More importantly, that level buys security – and even better, the potential for appreciation.
I can ascertain all of that without even knowing the name of the REIT.
It's simple market structure at the moment. And it's a structure that will lead us to where we want to go – higher yields without risk.
Here's my favorite for this week…