Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Decision criteria for investing in REIT?
Old 03-12-2017, 05:24 PM   #1
Full time employment: Posting here.
Carpediem's Avatar
 
Join Date: Aug 2016
Posts: 678
Decision criteria for investing in REIT?

We are currently invested in Wellington and Wellesley (approx $800k) with an asset mix of 60/40 (tIRA). We have an additional $400k invested outside of VG. I am looking to retire in one year, two at the max....depends on the healthcare outcome. Our sources of income in retirement will be: our investments, rentals, and social security. (No pension)

Obviously dividends are an important part of our plan. I don't want to go chasing dividends at the risk of screwing things up but I'm wondering if I should change my AA to include VG's REIT. I realize it's currently down a bit but its dividend yield history is still good I believe and I'd love to increase our future dividend earnings.

So I'm wondering if you were in my situation, would you invest part of the $800k in VG's REIT? If so, what would a reasonable amount/pct be? And if I do decide to invest in it, is there a best time of the month/quarter to do so? (I seem to recall reading something about avoiding "buying the dividend".)

Overall, I'm hoping to learn what the decision criteria should be for investing in a REIT. I'm obviously a noob so I'm looking to learn more as part of my ongoing investment education.

Thank you.

Edit to add: Our ages are 58/57 so all dividends are currently reinvested.
__________________

Carpediem is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-12-2017, 05:33 PM   #2
Thinks s/he gets paid by the post
exnavynuke's Avatar
 
Join Date: Sep 2016
Location: Acworth
Posts: 1,175
I put all real estate into the same category and identify it as one asset sector (whether it's a physical residence I own or investments in real estate through funds). I also am a big fan of diversification so I try not to put more than 15% of my portfolio in one asset sector. As such, I generally find that my residence alone satisfies my desire for exposure to the real estate market and only have residuals invested elsewhere (~2% across my current funds) since I already have a significant portion of my net worth tied up in real estate I own directly.
__________________

exnavynuke is offline   Reply With Quote
Old 03-12-2017, 06:01 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
target2019's Avatar
 
Join Date: Dec 2008
Posts: 5,358
We have 5% of total portfolio in Vanguard REIT. We also have REIT presence in other funds. Overall we might be 10%. Need to measure things closer.
target2019 is offline   Reply With Quote
Old 03-12-2017, 06:10 PM   #4
Full time employment: Posting here.
Carpediem's Avatar
 
Join Date: Aug 2016
Posts: 678
Quote:
Originally Posted by target2019 View Post
We have 5% of total portfolio in Vanguard REIT. We also have REIT presence in other funds. Overall we might be 10%. Need to measure things closer.
Have you been pleased / satisfied with the dividend payouts from the VG REIT?
Carpediem is offline   Reply With Quote
Old 03-12-2017, 06:37 PM   #5
Full time employment: Posting here.
RetiredGypsy's Avatar
 
Join Date: Mar 2008
Posts: 979
I just looked here at Vanguard, where you can scroll down and see Real Estate percentage from the Vanguard site. Apparently VTSAX has 3.76% in real estate. VFIAX has 2.28%. I just did the math, and it's putting me close to 13% overall in real estate. I can live with that.

I'm still happy keeping 10% in VGSLX. Vanguard has shown my rate of return for the last decade at 11% with everything reinvested. Less than the 19.5% and 13.6% returns on my other largest holdings, more than the 7.7% of Wellesley. My performance page on Vanguard is showing that Wellesley has given twice as much in income returns, to the tune of 20% now of the overall amount I have in there. VGSLX shows income returns right now after that same decade at 10% of the overall amount.

The link makes comparing funds easy. I'm very happy having both in my portfolio.
__________________
I'm free and I like it!
RetiredGypsy is offline   Reply With Quote
Old 03-12-2017, 06:38 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
target2019's Avatar
 
Join Date: Dec 2008
Posts: 5,358
Quote:
Originally Posted by Carpediem View Post
Have you been pleased / satisfied with the dividend payouts from the VG REIT?
This is in my Roth, and divs are reinvested. Those divs are not qualified, either.

I don't watch the dividend rate. But I'm very satisfied with the overall growth. It is well diversified.
target2019 is offline   Reply With Quote
Old 03-12-2017, 07:15 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 22,928
5% of my equity allocation is invested in REITs. It seems to behave quite differently than my other equity classes - marching to its own drummer as it were - so I find it a useful diversifier for rebalancing purposes.
__________________

__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Do you have disability insurance? Vendors? Criteria? spncity Health and Early Retirement 6 01-09-2009 08:38 PM
Minimum time criteria for Roth IRA/401K whitestick FIRE and Money 3 06-01-2007 06:00 PM
Criteria - Why did you select your ER city/town/community? W2R Life after FIRE 29 02-27-2007 11:38 AM
Rivers, kayaking, fishing, nature- my sole criteria oldcrowcall Life after FIRE 5 06-14-2006 04:50 PM

» Quick Links

 
All times are GMT -6. The time now is 08:51 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
×