Here's 1 Investment I'm Not Letting Go of in Retirement

Core Insights - The article emphasizes the importance of not relying solely on Social Security for retirement income and highlights the need for supplemental income through investments [1] - Real Estate Investment Trusts (REITs) are presented as a favorable investment option for retirement due to their income-generating potential and diversification benefits [2][4] Investment Characteristics of REITs - REITs are companies that generate revenue by managing portfolios of real estate, with various types including residential, healthcare, and industrial REITs [3] - A significant advantage of REITs is their requirement to distribute at least 90% of their taxable income to shareholders, leading to higher dividend yields compared to many traditional stocks [4] Benefits of REITs in Retirement - The additional income from REITs can supplement Social Security benefits and provide a buffer against market volatility, which is crucial for retirees who may need to access their investments regularly [5][6] - Holding income-producing assets like REITs allows retirees to withdraw funds without having to sell other investments at a loss, thus preserving their overall portfolio value [6] Considerations and Outlook - While REITs offer significant upside potential, it is advised not to invest all funds in REITs due to market fluctuations and associated risks [7] - The article suggests maintaining a long-term investment strategy with REITs while potentially reducing exposure to other stocks during retirement [8]