Roth IRA full-o-REITs

**disneysteve** · 09-13-2010, 12:43 PM

What does the rest of your investment portfolio look like and where would this fit in the big picture? There is nothing wrong with having REITs as part of your overall plan. I hold a REIT fund in my IRA myself.

**pescado** · 09-13-2010, 12:56 PM

No specific plan... just having a debate about diversifying across multiple funds. A co-worker was thinking that since the dividends are so high on REITs it's almost a guaranteed return on your investment and taxes on the income won't be an issue in a Roth account.

I would think that there is a downside to be all in REITs, but that thought is not backed by anything... just my thoughts.

**disneysteve** · 09-13-2010, 01:03 PM

Originally posted by pescado View Post

I would think that there is a downside to be all in REITs, but that thought is not backed by anything... just my thoughts.

Of course there is a downside: what happens when REITs crash, as they did during the recent real estate mess? As the old saying goes, don't put all of your eggs in one basket. Investing your whole retirement in REITs is not a plan, it is a roll of the dice. The point of diversifying is to acknowledge that different asset classes and different market sectors perform differently at different times.

**pescado** · 09-13-2010, 01:09 PM

i guess if it sounds to good to be true... it is.
Thanks DS!

Roth IRA full-o-REITs