• Investments


• Save or Invest?
  • Ten Tips to Survive Today's Market
  • Market volatility and your portfolio
  • 101 Ways to Cut Expenses
  • Food, Fuel and Funding Retirement
  • Understanding Your Goals
  • Choosing Investment Strategies
  • Rebalancing Your Portfolio


• Cash Equivalents
  • Risks & Rewards


• What are Mutual Funds
  • Buying Shares
  • Automatic Investment Plans
  • Exchanging or Selling Shares
  • How Do You Earn Money?
  • How to Compare Funds
  • Risks & Rewards
  • What is a Share Worth?


• Stocks
  • Investing for the Long-term
  • Types of Stocks
  • Market Capitalization
  • Risks & Rewards


• Bonds
  • Understanding Credit Ratings
  • Taxable & Tax Exempt Bonds
  • Interest Rates Affect Bond Prices
  • Types of Bonds
  • Risks & Rewards


• Real Estate
  • Why Buy REITs
  • Real Estate Risks and Rewards
  • What is a subprime mortgage?

Real estate is an increasingly popular way to diversify an investment portfolio. There are typically two ways to invest in real estate. The first is by making a direct investment in a property, such as the home you live in. Home ownership offers a number of potential advantages, including potential tax deductions for a portion of your mortgage payments and a source of equity should you need to borrow money for different financial needs.

The second way to invest in real estate is purchasing real estate securities, such as real-estate investment trusts (REITs), which are typically traded on an exchange like a stock.

What is a REIT?

A REIT is a corporation or trust that uses the pooled capital of many investors to purchase and manage a portfolio of real estate investments such as shopping centers, apartments, industrial facilities, office buildings or hotels. REITs allow investors to participate in the commercial real estate market without the lack of diversification or high costs that are associated with directly owning individual pieces of property.

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

The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, or legal, tax or investment advice, or a legal opinion. Individuals should contact their own professional tax or investment advisors or other professionals to help answer questions about specific situations or needs prior to taking any action plan based on this information.

The Financial Advisors are investment adviser representatives of AARP Financial Inc., an investment adviser.