The Truth About REITs

Dividend Investing Specialized Topic: REITs Investing Equip Yourself With The RIGHT Investment Knowledge
4 minutes
Share the link to this page
Copied
  Completed
Understand what REITs can genuinely do for you.

Transcript

Hi there. Now I don't know about you, but I was once a course junkie who had sat through many investment courses and had often hear about other instructors claiming that Reed's had delivered outstanding returns to them and their investors. Looking at the past results, it seems to be so for the past five years reads as a whole have clocked in an average annualized total return of 13.3%. And for the whole of 2016, the annualized return is about 12%. But the question here is this. Are those returns truly outstanding?

How would you determine whether one class of investment is better than the other? The answer is to compare with the broad market, which is none other than the s&p index and that is what I did lose At this chart, you will observe that the US retail index marginally lost out to the s&p index on every single timeframe, whether it's the one year average two year average or five year average returns. This implies that an investor would be better off placing his or her money in the s&p index than in reads, quite a depressing finding for any read instructor trying to market his or her course, wouldn't you say? Well, this is reality. I needed to show you this truth so that your expectations are set right. But all is not lost.

Reads are still great investments. And if you are dedicated enough to master this class of investment, your returns will definitely outshine those of the SNPs. Moreover, reads are some of the few investments out there that are easier to understand and manage whilst building Delivering real cash back into your pocket. I have seen many young working adults and retirees benefit from return investments from taking multiple trips around the world to purchasing a new property all together. Rietz investments, if managed well can enable you to do all these anymore. And speaking from personal experience, the reads in my portfolio have more than doubled their value since 2010.

And I enjoy yearly dividends of 12 to 15% consistently. So if I can do this for myself, I am sure that you can do the same. To convince you further. Let's look at a hypothetical example. Aaron has just started his career as an engineer. He has been working for the past three years and it saved up a decent sum of money.

He then decides to put $10,000 of savings To his portfolio that will give him a conservative yield of 9% every year. Aaron without fail puts in at $12,000 annually into this portfolio and whenever he receives cash dividends from his roots, he will reinvest all his dividends into his portfolio. Fast forward 10 years into the future, how much dividends will Aaron receive in a 10th year $5,000 $10,000 or $15,000? Okay, I won't stress you with any calculations. The answer is Aaron would have received about $16,000 of dividends and $70,000 of extra savings after just 10 years of investing. His investment would balloon to about $190,000 Aaron is doing Pretty Okay, I would say, of course, if you put in more money at the start, it would propel you towards financial independence faster.

But the challenge here is this to build that portfolio of reeds and manage it in such a way that it will give you a consistent total return of 9% or more for the next five to 10 years. And that is what I will be teaching you to do through the remaining lectures in this course. I hope you are inspired by the real possibilities of what reef investing can do for you. And with that said, let's move on to the next lecture.

Sign Up

Share

Share with friends, get 20% off
Invite your friends to LearnDesk learning marketplace. For each purchase they make, you get 20% off (upto $10) on your next purchase.