Investing in REITs

[pertinazzio]

I’d like to know what the forum participants think about investing in REITs at this time. Money Magazine has a list of 70 funds that they recommend to folks.
Among the 70 are two REITS under a category marked “specialty”. Any thoughts?

http://money.cnn.com/magazines/moneymag/bestfunds/2007/actively.html

[Raybyrnes]

I own Cohen and Steers and if you believe in dollar cost averaging you can buy the fund through Schwab and it is no load no fee. If you want to include REITS as part of your portfolio on a one time basis you can buy the ETF under the symbol ICF.

Another option worth taking a look at is CGM Realty (CGMRX) You can open an account with the company directly and it too is no load no transaction fee if opened directly. Through Schwab you would have to pay the transaction cost (50$) Might require some addional paperwork at the end of the year for tax purposes.

[pertinazzio]

Thanks! Great info, Raybyrnes!

Beatus ille qui procul negotiis … paterna rura bobus exercet suis, solutus omni fenore….. Horace

[pertinazzio]

Thanks! Great info, Raybyrnes!

Beatus ille qui procul negotiis … paterna rura bobus exercet suis, solutus omni fenore….. Horace

[Raybyrnes]

I own Cohen and Steers and if you believe in dollar cost averaging you can buy the fund through Schwab and it is no load no fee. If you want to include REITS as part of your portfolio on a one time basis you can buy the ETF under the symbol ICF.

Another option worth taking a look at is CGM Realty (CGMRX) You can open an account with the company directly and it too is no load no transaction fee if opened directly. Through Schwab you would have to pay the transaction cost (50$) Might require some addional paperwork at the end of the year for tax purposes.

[gold_dredger_phd]

REIT income is taxed at your regular income tax rate. It is not a dividend or qualified dividend for tax purposes, so you won’t get the 15% tax rate.

Wait for a depression before buying REIT’s. There is supposed to be an implosion. By foreign stocks so when the dollar implodes, you still have something left.

[Raybyrnes]

For foreign position I have been utilizing etf’sw EFA, BOLDERS ADRE and Dodge and Cox DODFX. I dollar cost average into DODGE and set up the fund directly iwht them to avoid transactional costs. Are there other good funds that have low auto correlation from the US Markets.

I guess the next thing would be gold, timber, etc.

[pertinazzio]

I hadn’t thought about the tax implications of REITs. And I agree with the strategy of high exposure to foreign stocks. At one time this was considered the epitome of risk taking. Now however I think foreign stocks are one of the more prudent places to be. Strange that Brazilian markets have become as secure as our own but there is nothing surer than change. Raybyrnes mentioned natural resources(“gold, timber, etc”). I am going to look into that because represents another global growth play and because it is supposedly a hedge against inflation. What are the best funds, ETFs?

Beatus ille qui procul negotiis … paterna rura bobus exercet suis, solutus omni fenore….. Horace

[zzz]

ETSs are all the rage – and they more closely represent the live market because they trade – so for better liquidity, buy ETSs. Assuming you have a 401K, you probably have the choices of traditional mutual funds – like others have said, go global. If you are years from retirement, don’t worry too much about it – pick a large fund manager – you don’t want the fund shutting down on you – and hope it goes lower or stays relatively cheap for the next 10 or 20 years – and then hope it appreciates for the 10 years leading up to retirement. Lower prices means more buying opps!

The market always beats the managed funds, so if you want to be able to buy and not have to watch it or worry, but an index funds. SPDRs for instance.

[pertinazzio]

Thanks golfgal! You have some good insight but I wonder about this: “The market always beats the managed funds”. What you say is generally true but not always so. For instance, Janus Overseas has consistently whipped its index (MSCI EAFE) over the last 10 years. Cheers.

Beatus ille qui procul negotiis … paterna rura bobus exercet suis, solutus omni fenore….. Horace

[zzz]

I don’t speak in specifics, you will always find winners amongst the funds, this is about averages and historical average. If you have enough money to buy into a top hedge fund, many far outperform the market. But for the average guy who doesn’t want to have to “pick” a fund, and bet right, go buy the market funds. George Soros and Warren Buffett clearly defy the efficient market hypothesis.

[zzz]

I don’t speak in specifics, you will always find winners amongst the funds, this is about averages and historical average. If you have enough money to buy into a top hedge fund, many far outperform the market. But for the average guy who doesn’t want to have to “pick” a fund, and bet right, go buy the market funds. George Soros and Warren Buffett clearly defy the efficient market hypothesis.

[pertinazzio]

Thanks golfgal! You have some good insight but I wonder about this: “The market always beats the managed funds”. What you say is generally true but not always so. For instance, Janus Overseas has consistently whipped its index (MSCI EAFE) over the last 10 years. Cheers.

Beatus ille qui procul negotiis … paterna rura bobus exercet suis, solutus omni fenore….. Horace

[zzz]

ETSs are all the rage – and they more closely represent the live market because they trade – so for better liquidity, buy ETSs. Assuming you have a 401K, you probably have the choices of traditional mutual funds – like others have said, go global. If you are years from retirement, don’t worry too much about it – pick a large fund manager – you don’t want the fund shutting down on you – and hope it goes lower or stays relatively cheap for the next 10 or 20 years – and then hope it appreciates for the 10 years leading up to retirement. Lower prices means more buying opps!

The market always beats the managed funds, so if you want to be able to buy and not have to watch it or worry, but an index funds. SPDRs for instance.

[pertinazzio]

I hadn’t thought about the tax implications of REITs. And I agree with the strategy of high exposure to foreign stocks. At one time this was considered the epitome of risk taking. Now however I think foreign stocks are one of the more prudent places to be. Strange that Brazilian markets have become as secure as our own but there is nothing surer than change. Raybyrnes mentioned natural resources(“gold, timber, etc”). I am going to look into that because represents another global growth play and because it is supposedly a hedge against inflation. What are the best funds, ETFs?

Beatus ille qui procul negotiis … paterna rura bobus exercet suis, solutus omni fenore….. Horace

[Raybyrnes]

For foreign position I have been utilizing etf’sw EFA, BOLDERS ADRE and Dodge and Cox DODFX. I dollar cost average into DODGE and set up the fund directly iwht them to avoid transactional costs. Are there other good funds that have low auto correlation from the US Markets.

I guess the next thing would be gold, timber, etc.

[gold_dredger_phd]

REIT income is taxed at your regular income tax rate. It is not a dividend or qualified dividend for tax purposes, so you won’t get the 15% tax rate.

Wait for a depression before buying REIT’s. There is supposed to be an implosion. By foreign stocks so when the dollar implodes, you still have something left.

[Author]

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