ALPS Active REIT ETF
25 y/o, just starting out. Looking at fortifying my 401(k) for now.
Fundamental analysis (confirmation bias) of an undervalued stock to make big money (lose life savings) 🚀🚀🚀
How major US banks could be at risk of sweeping defaults
Understanding Cap Rates, Real Estate, and Interest Rates:
Degen meet Boomer strat: Get Rich or Go Broke
Looking for a Trade on a Volatile Day- $MTEM, $DSS, $NAVB, $MARA, $OLB
Every Market Selloff Gives Opportunities: $NAVB, $DSS, $MARA, $OLB, $BTC
Does the REIT $ABR (arbor realty trust) actually invest in properties?
Mortgage Applications Drop Could Send These Multifamily REIT Stocks Higher
STORE Capital REIT, problem with taxes after going private
Is Investing in Roth IRA + Taxable Brokerage for retirement better instead of 401k?
What impact is higher interest having on real-estate investment trusts?
Holding a stock after numerous short seller reports? (MPW bagholder here)
Welltower or Crumbling Tower? Did we miss Hindenburg's scoop on this stock?
GOOD AND BAD NEWS FOR THE MULTIFAMILY RENTAL MARKET!!!
Opinion about Vanguard's recent grim market prediction?
Looking for an opinion on this REIT. I find it shady but want this subs opinion.
Wheeler REIT shares dive after preferred stock exchange offer fails (NASDAQ:WHLR)
My bot picked these for the week 2023-1-23 ;)
Growth investing as a bet on interest rates.
Does a fund manager have a fiduciary duty to shareholders of a trust fund?
How does a globally diversified ETF portfolio look to you?
Curious observations about efficient frontier calculations
What's your perfect balance between making money and not getting fu**?
Evaluation of £UTG (Unite Group Plc). Student REIT. Thoughts?
Suggestion on Inovalis (INO-UN.TO)REIT?
First Day of 2023... SPX Opening Notes
What are your top REIT Stocks?
Don't try to squeeze things that can be created out of thin air!!! It's dumb and will NEVER WORK!
A diversified portfolio (in terms of asset classes): simply suboptimal?
How To Trick ChatGPT into offering Financial Advice - and what it told me when I did...
What's up with EQR, Equity Residential REIT over the years. Massive moves vs say VNQ Vanguard fund of REITs
Cannabis REIT Freehold Properties withdraws $115M initial public offering
What exactly does the SEC regulate and how do the enforce rules/laws?
Blackstone REIT limits withdrawals from REIT 🐻
REIT investors unable to access their own funds
(OXMU) Prime US REIT, office reit, do you believe the office will come back? ~ 14% yield!
Need advice on how to manage investments. Lost 30% so far in stocks, bonds etf, stocks etf, REIT etf worth 100K. I used to just save everything in bank account before. I feel don't attract money.
convert target date fund to my custom build fund in Roth IRA
Sell taxable assets at a loss before end of 2022 to put towards Roth IRA at the beginning of 2023?
Trying to have a sense of the riskiness of (European) real estate companies like Vonovia
What should be my asset allocation percentage if I have more money than I need
Anyone invested in pennystocks that pay monthly dividends? What are they?
inflation safe capital appreciation and continued dividend growth REIT says Vegas is lights out
A financial: "3 REITs with the Most Reliable Dividends". Do you still trust real estate funds?
3x leveraged on margin, what to do in this market
Bluerock Homes Trust (BHM) REIT Trading at 15% of Tangible Book
Effective Way for soon to be "16" year old to start investing
REIT's fucking tanked this year and are in further decline
What’s that random stock you bought that gave unexpected gains?
STORE Capital to be Acquired by GIC and Oak Street in $14 Billion Transaction
Redwood $RWT confirms .23/share Qtrly Dividend Reaffirming they are leaders in the MREIT market. As rate rise their make money on their MSR portfolio as CPR speeds go down.
$NLY declares a .22 dividend and 4:1 Stock Split to make $NLY more attractive to smart investors.
Kontrol Technologies ($KNRLF $KNR) Announces Second Quarter 2022 Financial Results; Revenues Increase 599% Year over Year to $29.1 Million; 6 months Revenues of $55.8 Million
REIT’s could actually thrive in the back half of 23 if the bond yield curve turns around. Hard to say what anything will do anymore these days though….
I live near an office park that is so empty that they rent space to homeless van dwellers, my first instinct was to find out who owned the building and short the shit out of their stock. Turns out it was owned by a REIT who recently turned the keys over to the bank. Since you are already shower friendly, could you join the Dollar Shave Club, perhaps scale back to a soul patch and go into the office and save the U.S. economy?
Man I hope it's fucking Loblaws and their stupid REIT which drives our grocery prices
I hope you understand that you got lucky AF. Buying rental property is just a heavily leveraged bet on the least efficient REIT being ourselves. Would you buy a REIT with 10-20x leverage and call that safe?
It is still madness. Of course it's a leveraged instrument and you catch swings and think you're smart, but it's tracking the best REITs out there and they all have great backstopping from their dividends and the 90% payout rules. People bemoan the office sector, but the only office REIT in all of DRN/DRV is Boston Properties which comprises less than a percent of the total holdings. Aside from the swaps that make it a 3x instrument, most of the weighting is in industrial, telecom, residential, and data center REITs. REITs have long term tenants, far better cost of capital and balance sheets than their private counterparts, which means they have strong dividend coverage, won't be pressured to sell or refinance at bad terms, and can be net buyers when the market is down. DRV can turn on you quickly, and it's always going to decay.
When the house always wins, it's hard to see VICI not being a safe REIT. People gamble when they have money and, sadly, people gamble when they don't. Btw, congrats on that QQQput win Dec. I hope you were able to hold onto some of those gains :)
There actually are still houses selling at 100k over, with 6.5% interest rates. The market is heating up again, on the seasonal trend. But the supply is lower than ever, because so many owners are sitting pretty on their 2% rates. But you know, all those 2% mortgages are now bundled up in underwater mortgage-backed securities and held by banks. If the banks can't handle mark-to-market losses in Treasuries, well their MBS holdings are even more fucked. If anything is going to be the catalyst of this crash, it will be that. There will be some bank or REIT holding mostly MBS, and they're going to run into the same liquidity problem faced by SVB. They're going to come begging to the FDIC and Fed for a lifeline in the same way, and the Feds are going to be like, "Treasuries were one thing, but MBS? No." And then it begins.
What's going on in REIT land?
Thanks for the prompt reply any suggestions on quality REIT in Canada/TSX
>It is difficult to say definitively whether or not buying True North REIT would be a good option right now, as there are many factors to consider. However, if you are looking for an investment that has the potential to generate income and grow in value over time, then investing in a quality REIT could be a wise choice.
VNO is also a REIT. REITs will have issues in a down turn with the entire real estate market, but what does this have with banks?
I thought O was a REIT.
The point of this post is to counter the market view on this stock last week and why there is material opportunity for the stock price to sharply bounce back. The rating agency's are rating a diversified SIB lower than mortgage REIT's who have near 100% exposure to MBS market.
Yep. I'm overweight in financials, utilities and energy but have $55k waiting on the sidelines, looking at getting some BMO, adding to my TD position, maybe Power Corporation, but I should be getting more into industrials, tech and real estate as I am underweight in those sectors. Not a great time to get into REITs but Slate grocery REIT is looking interesting.
I was referring to REITS in the context that they DO usually have at least annual and sometimes semi annual windows of liquidity. Problem is the REIT has total discretion whether to accept the request or not. I’m not playing who has the bigger brain bc I would probably lose. Too much of that here already. I appreciate the dialogue.
Idk Blackrock's commercial REIT has been gated all year, not exactly news that they have trouble. $69 billion out of what, $1000 billion + at the peak?
The situation of having unrealized losses is not a unique one.... what was unique was the concentration of clientele and the draining liquidity that forced them to realize it. a HF or REIT wont necessarily have to realize those losses and can almost certainly hold to maturity. It will result in subpar gains, but theyll still get PAR value back
Allright, to unpack here, most mutual funds use short term treasuries as a money market for any cash positions. Which, unless its a bond fund exposure would be limited. They'd be constantly buying and redeeming gradually along with the interest rates rising. ---- something banks didnt have the luxury of doing since lots of their loans were low %. Also, what REIT or real estate or hedge fund would go balls deep in treasuries???? None. You need to get more specific, per fund or something. 26 billion is a drop in the bucket for blackrock btw so this post is garbage unless you specify more.
> About 70% of these funds are all invested in US treasury bonds–the same stuff SVB was invested in. About 90% of the purchases are from 2020/2021 when rates were low and money was everywhere making their investments worth dog shit now. I don't believe this at all. Why would a REIT have an amount of treasuries that matter? Why would they be long treasuries?
Agree with MrNotadvice and others- this is a nothing burger. Funds will block redemptions if they haven't already done so. Whether their IPS has provisions for "prudent" risk management and interest rate swaps as a hedge is another matter entirely. Just because your private equity fund sucks doesn't mean you get a "pass" for mainlining duration risk. BTW Blackrock or other Target Date Funds are stuffed to the gills with these things as you get closer to retirement. I do however like the optics here for a potential macro type trade: \- Puts on $TBT / Calls on $TLT \- 120 day DOTM $SPY straddle \- Gold / Silver / Commodities \- Inverse REIT plays, anything inverse corporate real estate Also keep in mind that nearly every Pension fund in America that is either frozen or semi-frozen has been salivating at the idea of closing shop and cashing out participants with annuities. This alone is going to create massive sales in Treasuries (replaced with shorter duration on the annuity side). This being the case, coupled with any phantom drama for redemptions, the Fed may not need to lower rates as the markets will be causing supply to surge regardless.
Blackrock isn't the only fund we've had to test. We've tested over 1000 funds since the start of the year. So, BlackRock isn't the only one. I should include this in my post, but even though we've gotten less REIT funds then we have other private funds, their losses are unbelievable. They're almost up there with funds who invested in US treasury's in 2020/2021. So, combine the two and you now have a potential 1 trillion dollar loss.
when the fed cuts rates, go in on office REIT calls
15 stocks total. 20% tech sector 10% REIT sector 10% oil sector 20% Brookfields 8% insurance 20% financials 12% Cash
If you are looking for dividends, just buy Tresury, better yield available ! Why risk with REIT? Unless you are expecting appreciation in Avalon bay to beat 5% tresury
Hi friends who are in office REIT puts who’ve actually listened to me: “Banks with less than $250bn in assets account for 50% of US commercial and industrial lending, 60% of residential real estate lending, 80% of commercial real estate lending, and 45% of consumer lending." - Goldman Sachs
If you mfs bought office REIT puts like I said yesterday, you'd be bigly green today
Again, the only thing safe are my office REIT puts
REIT dividends are even worse tax wise than other dividends. https://www.simplysafedividends.com/world-of-dividends/posts/18-a-short-lesson-on-reit-taxation
You're asking strangers to predict if two single stock banks will perform better than a REIT stock over the next 15 years?
It's been years since I did any research into which REIT is a good place for new money right now, so do more due diligence than just reading my comments before buying anything. With that said, the REIT I bought in 2009 and still own, partly due to inertia and partly because no red flags have ever appeared, is One Liberty Properties (OLP). I've been trying to shift a bit away from individual stocks and more towards ETFs, so I own Vanguard's REIT ETF (VNQ) as well. One other I've owned for years is Brookfield Renewable Corp (BEPC). While not technically a REIT I don' think, it has the same feel as one; very steady with a good dividend.
if you're a bear and you're not in office REIT puts wtf are you doing? betting against tech?
I been buying VICI and PLD for the safer REITs. The risk on REIT that is unpopular and not for everyone I been buying is MPW. I went heavy this morning in the $7.65 range. If MPW goes to zero I at least have VICI and PLD. If it doesnt I get a 15% yield plus capital appreciation.
Recommend holding them in tax efficient accounts like Roth IRA. That said, REIT is interesting at the moment, the market is valuing it less than Main Street. So there are definitely value, is just that some catalyst would be needed to close the gap. Had successes last two years with APTS and INDT both which was taken private. Right now, I have a couple on my radar… just need to find some time to spell out the thesis.
Find someone who looks at you the way a Seeking Alpha writer looks at a healthcare REIT that is down 57% in the past year.
I agree with almost everything you say but maybe not the last part. "How the market works". If by that you mean, what is a common stock vs. a preferred share. How does loss harvesting work, wash sales, how to transfer IRA to ROTH, when is the best time, why are tax rules different for ETFs that have futures underlying or what does qualifying as a REIT mean for dividends etc. OKAY. But once they start telling them "how it works" in making stock picks, sectors, what the Fed tends to do, or what to buy... That's where I say a good advisor tells you to diversify in indices or get a good algo / asset allocated fund that rebalances automatically. They admit they probably don't know unless they have a LONG track record to back up that maybe, just maybe they have an edge. Anyone that doesn't keep track of their performance in giving financial advice very accurately is not selling an honest service.
I got around 80k mixed in RA- BROOKFIELD REAL ASSETS I ( 20c per share every month) MO - ALtria group (You know how hard it is to stop nicotine???)10% dividend they are actually up ) BXMT - BLACKSTONE MTG TR REIT (another 1% per month) You can set them all to reinvest or not.. If not take the dividend and throw it into something else.
Sure, BXP and other office REITs still have exposure, but the REIT universe is so large and diversified. Even in the office sector, there are going to be good opportunities because the REITs are less levered and have a lower cost of capital than their private counterparts. All the best tenants still value being in Class A product in great metros---the major issue going forward will be downsizing within buildings once leases roll, but that will make more space available within current product for additional entrants. Suburban office is where owners are really going to get slaughtered because for the most part the only area in which they can compete is price/parking. The best REITs are going to be in more resilient asset classes like industrial (Prologis and Rexford...and STAG if you like single tenant industrial) and multifamily residential (Avalon Bay, Equity Residential, etc.) There will also be leaders in certain sectors like Simon Property Group in retail - which might have one of the single best balance sheets of any company anywhere. People make the mistake of thinking "commercial office" is the real estate industry when it's really just a slice, and also make the mistake of thinking all ownership types are the same. The best REITs have the ability to issue new equity to make accretive acquisitions any time they need to and also have the lending relationships to keep an optimal cost of debt.
I bought my first REIT in April 2009 as a bet that the real estate market was bottoming out. I've owned that REIT ever since then and a handful of others over the years. Keep in mind there are two types of REITs: Mortgage REITs and Equity REITS. Mortgage REITS trade debt instruments like mortgage-backed securities. Equity REITs own real estate and collect rents. The reason Ellington Financial pays such a large dividend is that they are a mortgage REIT, speculating on mortgage-backed securities. As we all learned in the Financial Crisis, speculating on mortgage-backed securities can be a risky endeavor and that house of cards can come crashing down pretty spectacularly. So, mortgage REITs have higher dividend yields due to being a higher-risk investment. I try to avoid mortgage REITs and stick with equity REITs for this reason. Relative to the S&P 500, I've found equity REITs underperform the S&P 500, but that's because they're less risky and more stable than the S&P 500. Nothing wrong with that, just something to keep in mind. You could probably beat the S&P 500 with mortgage REITs, but that's getting into risky gambling speculation behavior.
Commercial REIT bye bye
Dropped a ton of cash into commercial real estate REIT puts expiring in April yesterday. Good timing. They’re gonna blow up alongside the banks
I’m sure people had the exact same sentiment about GOOD, before they cut their dividend. A quality of a REIT should be judged by their cap rate vs. average cost of capital, instead of how much cash they throw at you.
It's not a bad bet; I honestly think it's a pretty good bet at it's current share price. It's not looking good at $54 a share from what you said above, but selling at a loss at this point doesn't do you a whole lot of good with where the share price is currently..so there's that. IIRC, there is upside as it's still Intel and I am pretty sure I read that they will have one or two plants here in the USA coming up soon. This is a good look for the future. In terms of SVB ... well it's like investing in KO vs say... a REIT. Better yield with the REIT with the warranted risk that your investment will lose share value as lots of REITs do. The bet is hoping that you got in at a bottom barrel price on the REIT if you are into playing Russian Roulette. If not, KO is still there.
It's a REIT... why would you expect it to go up? It's paying $0.40 a quarter divvy.
Just checked Investopedia. It states net worth required of $1 million, but does not state liquidity requirement. I believe you just need $100,000 liquid. I sold these products a couple of decades ago. It's tough to find investors willing to drop a million on a non liquid REIT. It's was doctors, dentists, and lawyers back then. These professionals are smart enough to make it. But just dumb enough to buy these products. Payouts to brokers are typically 8.25% with no "breaks" (which means commissions go as high as the investment amounts). A $1 million dollar invest means a third party broker pitching this REIT gets an $82,500 commission check. Only dumb money buys this stuff.
People are idiotic if they think they should be able to withdraw cash at any time from a private REIT LOL... its not a checkings account
It's happening again. In 2008 it was collateralized residential mortgage backed securities. In 2023 it is collateralized commercial backed securities hammered by REIT defaults and holders of long term bonds hammered by forced redemptions to cover depositor runs. This is it.
Income is income. Period. If you want extra income dividend paying stocks are great to take advantage of. If you prefer to keep your dividend stocks in an IRA or other tax deferred type account without any plans to need to the income soon then that's great. But I think there is too much emphasis on avoiding non qualified dividends for tax reasons. If that is a source of income you use then take the tax hit and use the income. The only problem with the higher dividend stocks is lack of appreciation in price with potential downside in price. The dividend may go up but if the price is going down your principal invested diminishes overtime. Best to look at ETF's or REIT's with solid track records-increasing dividend payouts and good price appreciation. I think that is where the apprehension is with higher paying dividend stocks. Folks don't want to lose their principal.
Many psychos on SA have a sexual addiction to this shitty REIT.
Highly regarded individual. Read up what REITs do. They leverage the sh1t out of the money they have. So you leverage a leveraged REIT in a high interest rate environment that has a high yield because other people are selling it (or it wouldn't be high yield). 7% yield on a REIT is never low risk but you might not know the risk true. Explain me the difference between your strat and borrowing 50k to buy META stock right now. You belong here.
No. You would be a degen even if you randomly loaned 50k from a bank and tried to do the same. You just tried to manufacture an arbitrage scenario to justify a high risk investment. What you actually say is "What if put 50k in a high yield/high risk REIT".
Please do the math if the REIT cuts the dividend and goes to $12.
Something big is happening at Blackstone. They won't redemptions out of a European fund. They block investor withdrawals from a $71 Billion dollar REIT in February.
Maybe there's commercial REIT's ?
Sorry I haven’t read this yet but I get a bearish vibe. I’ll check it out, maybe, but I don’t really like the cut of this jibe. That was based on a very quick skim. But, I think I can make a far more coherent argument than you (or ChatGPT given how verbose this is) in 30 seconds. Here yah go. Oooof. Maybe a high school essay or chat GPT run. Sort of noise about accounting metrics and some Pattinson, driving to a rambling “ain’t a value stock name”. Off the cuff, you are: 1) looking at the the cheaper analogue to what Buffett and Munger just bought. That’s $LPX which is valued much richer than this. 2) Trades at a sig. discount to the price for new capacity. New lumber mills are at least $800/mfbm, implying a replacement cost of this name of $4.8B for its lumber. That’s 80% of cap. But lumber is maybe 30% of its value — its OSB. And they’re not a timber REIT bro — lol. You want landholdings? You be paying 16x ebitda then man, not 5x. 3) Trading at a P/B below 1.0. Think it’s 0.83. 4) seeing tailwinds exist interest rate the interest scares in late. Eg median age of housing stock at 40 years or so driving extensive repair and reno activity. To say nothing of non-res activity using mass timber which is net new. 5) trading at, what, 5x the conservative “trend ebitda”? When the broader market is what, like 14x or 15x last time I checked in with the Damodaran datasets? Rbc has public disclose via a vis trend ve near term ebitda and its defensible and historically accurate. Guess that was like 3 mins not 30 seconds.
I’m trolling, but for some companies this is actually true. You see it when a strong REIT like O issues shares, the market is confident they’ll use it well and return the value to shareholders.
No - nothing new about the idea. REITS have been around in the US since the 60's. And REITs structures exist in many countries. You are looking at a Canadian private REIT.
Correct! They have funds to carry through the bad years. I also never liked the dumb “buy a home advice”…. because I can make more money in REIT dividends than renting a dumb ass airbnb
REIT's able to buy properties too much too frequently. Foreigner ownership issues. The forcing out of small banks and businesses, essentially monopolizing mortgages being for "big dogs only". I do believe REIT's need to be regulated away from residential. We say Dodd-Frank regulates and protects from speculation and predatory lending, which some of that is 100% true and was necessary, but has turned into a different monster altogether. Basically we're all in the same canoe and we plugged one hole by unplugging another and congratulated ourselves. The solution was not to strengthen the banks who robbed you in the first place.
Incorrect. They're 5% of listed owners, plenty use shell corps and REIT's to mask ownership. Canadians famously made the exact same argument you're making now about a decade ago and now they're scrambling to pass foreign ownership laws despite "only 3%" of their market being foreign owned (hint: it's way higher)
The problem has always been that since the '08 crisis, we've done nothing to regulate mortgages and protect home owners. Instead we allow conglomerate REIT's to gobble up homes and properties, making your Average Joe compete with the deeply lined pockets of Wall Street. Let it crash, fuck those people
I own another REIT named VICI. They loan money to their tenants and finance stuff all the time and dont get the same push back MPW does. Maybe the difference is VICI tennats are publicly traded companies. MPW has many that arent so it makes the doubt attacks easier when you cant look at balances sheets on the tennats.
Look up expected value calculations. Any investment that is not zero risk has to account for the risk. If just tossing money in a REIT was the answer there would be no need for this sub. You seriously need to educate yourself on the subjects you are talking about.
REIT's are required to pay at least 90% of earnings in dividends. Why would you want to increase your tax bill by paying 30% on everything earned, rather than enjoying the tax sheltered nature of retained earnings? In a long time period, like 30 or 40 years, 1% annually can make a huge difference on the total.
Aren’t REIT ETFs different and actually offer some diversification from something like VOO ?
NLY focuses on agency papers while STWD uses non-agency. Thats the big difference. In theory, agency papers cant go to zero because they are backed by the government and proof is in the pudding. NLY is an old dog that has survived very hard economic times while STWD is unproven by comparison. In fact I dont know of any commercial or non-agency mortgage REIT that came out of the financial crisis in good shape... if they survived at all. Many went out of business and then later reformed. STWD was formed after the crash so they are unproven. That said, there are other things to consider. You need to look at the debt levels, what their loan to asset ratios are and the quality of their papers. But the real big decision you need to make is to figure out how comfortable you are with commercial debt. I would, personally, never invest in any commercial debt unless I know which company is on the hook and know for certain they can survive economic down times. But who has time to check a companies papers? They have thousands of papers and ratings really are unreliable to near worthless as the financial crisis made us all aware. I certainly dont have time for that, so I just avoid all commercial mREITs (mortgage REITs). Maybe you have to time to investigate? Its up to you. If I were to get any sort of mREIT (mortgage REIT), I would stick to NLY or AGNC. They are both struggling right now but in general, survival isnt an issue. That said, over time, they will lose equity (book value) to a variety of factors which then effects how much they can lend and in return, what your distribution is going to be (the dividend). Thats normal. To shore up equity, they have to dilute, usually when share price is below BV. Thats the ideal time to dilute because its considered good for the existing shareholders. The term mREITs use is "accretive" if memory serves me.
I just had this mega-mind moment, where I was looking at companies that have the 'subcription-model' for revenue, as it is the most lucrative model in business/investing right now. I then came to this realization that REIT's have the ultimate subscription model, Rent is the oldest and most consistent subscription of all time. The answer was REITs all along.
Do you mean YTD? If so, that would be ~3.6% which is a solid return. My savings accounts earn 3.4% at a large bank and 3.75% at a small online only right now. There are certainly better rates available (I think someone mentioned that Fidelity’s MM is over 4% right now.) Switching for a better return on savings may not be worth your time/effort. And if you’ve a good relationship overall and with individuals at your life-long bank, that may have value in itself. If it’s $600 for an entire year, or .6%, that’s a poor return. Perhaps keep your emergency fund at your current bank and move your house savings to Fidelity alongside your IRA for the higher rate - that way you don’t need to switch banks. You can also look at CDs offered by your current bank and/or through Fidelity and create a ladder that matches your time frame and allows access to your emergency fund at the intervals (say monthly) you’d need in case of emergency. Again, it sounds like you’re in a great position. As others mentioned, you might want to be more aggressive with some of your 100k saved by putting that beyond Emergency Fund and Savings (e.g. for down payment) needed in fewer than 5-10 years by purchasing equities in a taxable brokerage account at Fidelity. It seems wise to plan for the next real estate purchase as well. That will create a new stream of income to consider for investment/savings (and taxes, but with the benefits of real estate investment built in. That might make REIT investment redundant as you will have more real estate exposure than you do now and dividend income that’s treated as normal less appealing in a taxable account.
Just want to highlight the last part of your question (as others likely have.) You may want to invest differently in IRA vs taxable brokerage. schd, jepi and dgro focus on dividends and o is an REIT and therefore also pays income, so these and others like them belong in the ROTH vs a taxed brokerage account to avoid losing profits to taxes. QQQ tracks the NASDAQ and in that sense is similar to VOO which tracks the S&P. If you are interested in investing more heavily in tech, QQQ might make sense over or along with VOO. A middle ground might be something like VUG, which focuses on large growth. Which chosen is a matter of personal preference, but which type of account doesn’t matter as much as it does with income generating investments. Thirty years is a long time. If looking to set and forget, SCHD in IRA and VOO + VUG in taxable account historically have served the purpose very well (time in the market and all that.) Funds that will be needed soon, for a house purchase or emergency fund need to be in a “safe” place like HYS a CD ladder which can be set and earn 4%+ at the moment. With a thirty year time frame, trying to time entry hasn’t made sense in the past - the cash savings not needed in the short term would have grown more in something like VOO than in a savings account looking back. Lump sum also has out performed DCA most of the time (for the portion of your savings you wish to invest.) If you believe that “this time is different” or that the entire financial system will collapse or change drastically then it’s a different issue, if not, investing the portion of your savings you won’t need for thirty years in a broad market or S&P ETF might make sense to you. (Were I in your position, I’d be thrilled at the opportunity - well done btw!) DRIP, the automatic reinvestment of dividends won’t save on taxes but is in keeping with a “set and forget” spirit. By investing “new money” monthly, you are already dollar cost averaging, which might bring peace of mind.
I'm probably wrong, but why would Blackrock be giving anyone their money back? People bought shares in a REIT. When they want to get out, they sell their shares to some other sucker on the open market. Blackrock got their money already.
schd, jepi, dgro, o are all dividend heavy... They're not *bad* exactly, but I think you may have a friend that's drunk some dividend kool-aid. I don't see any reason to prioritize dividends, particularly with such a long timeframe; likely you'd just be automatically reinvesting the dividends anyway. And if you're doing that, then I don't see why one would prioritize them. With dividends, you pay taxes in the year you receive the dividend. That tends to make them less tax efficient at longer timeframes. IRA money is basically exempted from those taxes, so it's not a concern there, but it would be a bit less tax efficient in a brokerage account. O in particular is a real estate investment trust (REIT). Again not a bad thing in itself, but the dividends it generates are ordinary (not qualified) dividends. That means they're taxed as income, not as capital gains. So if you're going to buy O, you would prefer to do it in your IRA where you don't pay income tax every year on your O dividends. QQQ is tech heavy, so a much narrower fund than something like VOO. Typically with tech, that has meant higher highs, lower lows. e.g. in the dot com crash, QQQ lost over 80% of its value vs VOO at more like 50%... but in the ensuing years, it's gained back a lot of that ground. I'm a believer in tech outperforming long-term, but the argument against throwing more money into QQQ is that tech is already very heavily represented in stuff like VOO. I'd categorize it as long term but not fire-and-forget, if that makes sense. Like if you have an inkling that shit is going to go great or poorly for a few years and you move money in and out of QQQ in response, I think you can do well. But if you're literally just going to let it sit there for three decades, probably not worth holding separately. If you're looking for MORE diversified than VOO, then the areas you're missing are smaller US companies and companies that trade on foreign exchanges. If you wanted smaller US companies in the mix but don't want to worry about rebalancing, VTI is mostly the same as VOO but has some amount in smaller hands as well. Or SCHB is an alternative. They tend to perform very, very similarly to VOO though, so I don't think it's particularly crucial. Or alternately, you could throw some portion of your portfolio at VB (small cap blend) or VBR (small cap value). But usually the idea if you're doing something like that is that you rebalance every once in a while to restore the ratio you want. If you wanted foreign markets in the mix but don't want to worry about rebalancing, VT is like VTI + broad foreign market exposure. It has underperformed the US-only funds for many years, but having money there does hedge against some situations, like what if the US dollar went to shit, or what if US markets just have a terrible decade, etc. The alternative there would splitting your contributions with something like VXUS which is ONLY foreign. Again, the idea with multiple funds is usually that you rebalance every so often to restore the ratio you want.
I'm trying to understand the perspective of other investors. Real estate value is like you said is heavily dependent on the region so I don't really care about regions that are at risk of serious economic decline: western drought prone region south eastern flood and storm prone. Also aside from REIT's it's difficult to diversify real estate investments on a small scale with comparable returns to the stock market and sector based mutual funds. Hence a majority of my questioning for you is to understand why you seem bullish on the overall real estate industry in case there's something I failed to consider.
I moved to a new location and am worried I haven't received all my tax documents from VNQ. I bought VNQ off Robinhood but all they can tell me is that they aggregated a 1099. Can anyone tell me what tax documents I should be expecting for holding that particular Vanguard REIT? Is it supposed to just be a 1099 or should I expect a schedule Q or schedule K? VNQ is being held in a taxable personal account
'Got out of stocks threw the boat into T Bills Saving the REIT But folding out of oil Got 5% just living on the interest That's $88 above the averages Nicely making wage From a nosy bar in Ireland my adviser tried to call me He said I should have could've kept growing things beat inflation right away. ​ But the Golden Cross....
Not all US equities are going to have a hard time. So look at what categories are likely to do, so reduce REIT and growth whilst increasing commodities could work (or be completely wrong, because I'm not an oracle). A threat / opportunity is a weakening dollar. So other non dolar markets could be a hedge. If you pick a market which has 0% growth but the dollar falls 10%, that's the same as a 10% growth. I have part of my investments in US stocks thanks to a global all cap, so benefitted from the strong dollar to this point. My plan is to reduce US exposure (not remove as still think growth is likely), US small caps, emerging economy or two, Europe and UK being bumped up.
Hey all, first time posting here, so I'll keep it brief: **new to investing. Recently came upon $1,500 of disposable cash, and I'd rather invest & grow that money, instead of spending or saving.** **Any investors, financial planners, or entrepreneurs have suggestions on how I can best use that $ to make more $ passively?** (By passively, I just mean not too time-demanding - like a well-performing REIT for example) *I am...* 40 yo, live in the USA Self-employed publisher & content creator Currently settling all debts/expect to be debt-free within 3 months Goal: to build up an additional income stream Not in a rush, not looking for "get $ quick" approaches; willing to play the long game if the method is solid HIGH risk tolerance - I'd be fine if this money wasn't here What are you current holdings? (Do you already have exposure to specific funds and sectors? Any other assets?) Stocks/bonds suggestions are OK as well - I'll follow up any name drops with my own research I'm open to ALL ideas; I can afford to risk this money, and am comfortable doing so. If all else fails, I can always let it sit in my checking account w/interest as well. But I'd prefer something with the potential to have a greater return. Thank you in advance.
What space are you in exactly? It's **very** hard to see how that's not just more positive spin from your firm. If you think credit flows will hold up with FFR at 5% or higher, you're just delusional. Couple that with the actual capital losses and the writing is on the wall... One of my best friends works for a big REIT shop and he spews this same nonsense at me all the time. On one hand I get it, there's a level of indoctrination whenever your livelihood depends on it, but it's also hard to understand how you could willingly put blinders on like that.
Real Estate Investment Trusts (REIT)?
Buffet does a load of dodgy stuff that gets a pass because he’s buffet. Like profiting from the bank bail outs and his REIT business that prays on the poor an vulnerable why are you so surprised?
They didn't block the redemptions because they're in trouble. Only 2% per month, and up to 5% per quarter, can be redeemed. You know this when you purchase BREIT. It's a REIT. Illiquid real estate. It would be a terrible investment if people could pull in an irrational panic and cause them to force sell properties. They'd lose all leverage in the sale. There is a lot of legitimate economic data out there to be concerned about. Let's not freak out about the things that aren't problematic.
Forced to limit withdrawals from its REIT too. Pinche Mal No Bueno Jefe.
10:57 644 reuters.com Blackstone blocked investor withdrawals from $71 billion REIT in February By Chibuike Oguh Buckstone Signage is seen outside the Blackstone Group headquarters in New York City, U.S., January 18, 2023. REUTERS/Jeenah Moon/File Photo iB@OA NEW YORK, March 1 (Reuters) - Blackstone Inc (BX.N) said on Wednesday it had blocked investors from cashing out their investments at its $71 billion real estate income trust (BREIT) as the private equity firm continues
Almost all of the anticipated movement in the 10-year Treasury has already happened from where it started going up. Even with some more rate increases, we're already fairly close to the apex point of all rate curve projections. Cap rates will stabilize. When you talk about "labor strength" it's important to note that not all jobs are equal. Adjacent data, including consumer debt is skyrocketing and personal savings rates are near all time lows. The economy is actually extremely fragile right now, and it's likely that the Fed will pause hikes within the next 6-12 months and actually run "higher for longer" so there will be more stability in cap rates and RE loan pricing. Crypto is virtually meaningless to real estate. It's a tiny risk playground controlled by a few people. Real estate consists of real hard assets and real cash flow. Like I mentioned earlier, commerical REITs are very diverse, have a great cost of capital, and have credit quality tenants on long term leases. They already experienced their cap rate expansion pain. The office sector will have some pain still, but they are only a small slice of the REIT universe.
Owning real estate is a hassle, not liquid, high risks, maintenance, empty.... Owning a REIT mutual fund: the way to go. Privately held REIT: not liquid, no public available evaluation or comparison.