Core Insights - REITs have delivered a 12.6% average annual total return since 1972, indicating their potential for long-term wealth accumulation [1] - Congress established REITs in 1960 to democratize investment in commercial real estate, requiring them to distribute 90% of net income as dividends [2] - Realty Income has produced a 13.7% average annual total return since its public listing in 1994, with a consistent monthly dividend yield of 6% [6][7] Real Estate Investment Strategies - Various methods exist for generating passive income through real estate, including rental properties, REITs, and real estate partnerships [4] - Investing in dividend-paying stocks has shown to be a powerful wealth-building strategy, with the average S&P 500 dividend stock delivering a 9.2% average annual total return over the past 50 years [8] - The Schwab U.S. Dividend Equity ETF has achieved an 11.6% average annual total return since its inception in 2011, focusing on high-quality dividend stocks [10] Fixed-Income Investments - Bonds have historically provided lower returns, averaging about 5% annually, which would require approximately 76 years to accumulate $1 million with a $100 monthly investment [12] - The iShares Core U.S. Aggregate Bond ETF offers broad exposure to high-quality U.S. investment-grade bonds, making it a suitable option for generating passive income [13] Diversification Strategy - A diversified approach across various passive income investment classes is recommended to mitigate risk and enhance the potential for steady portfolio growth [14]