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.

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.

While AARP endorses the services provided by AARP Financial Inc., AARP does not offer financial products or services itself and cannot recommend that you or any specific individual should purchase any particular product or service. AARP Financial Inc. is an investment adviser and a subsidiary of AARP.