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REITs as inflation hedge/bond alternative?

Posted on 1/14/21 at 1:37 pm
Posted by TorchtheFlyingTiger
1st coast
Member since Jan 2008
2133 posts
Posted on 1/14/21 at 1:37 pm
Looking for something other than bonds to diversify my portfolio. Currently 100% equities other than some sideline cash. Plan to early retire in summer 2022. I'm afraid bonds will lose value when rates eventually go up and wont outpace inflation. Thinking of putting 4 years of expenses above pension/5% of my portfolio in something so I dont have to sell index funds in a bear market. I can be aggressive since 2/3 of annual spend is covered by pension.
This post was edited on 1/14/21 at 1:38 pm
Posted by makersmark1
earth
Member since Oct 2011
15884 posts
Posted on 1/14/21 at 6:01 pm to
I’ve got a couple of REIT ETFs.

VNQ.

I also have some Vanguard Real Estate Mutual Fund.

I’ve also established a position in preferred stocks with PFF and another ETF that the symbol is PGX.

CDs are paying nothing.
I manage my mom’s account so she needs conservation of principal, but I’ve dabbled in these REITs and preferred for her account as well. She still is over 60% equities in her late 70s.

My grandfather just rolled CDs at 10% for his retirement.
Now you can’t get 1% for a one year CD unless you get a special.
Posted by FredsGotSlacks
Baton Rouge
Member since Mar 2008
815 posts
Posted on 1/14/21 at 6:24 pm to
VNQ is still at a good price point as well in the low 80s. I own quite a bit of VNQ and unfortunately quite a bit of EPR which is at about half of its value from last year and isn’t even paying the monthly dividend like they used to. EPR could end up being a great buy if they can survive the COVID shutdowns but since they hold entertainment and theatre properties they’re definitely high risk.
Posted by makersmark1
earth
Member since Oct 2011
15884 posts
Posted on 1/14/21 at 7:29 pm to
Eventually things will open back up.

The CD rate being so low has made many of us reach for yield.

You can’t fight the fed, but eventually the government will have to monetize the debt.
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