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Old 11-19-2008, 02:40 PM   #21
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VGSIX in a Roth IRA
0.85% of portfolio (used to be approx 2% in the salad days)
-49.25% YTD loss
7.23% YTD yield
i can't contribute any more unless i have earned income, not married yet so i can't do spousal IRA. bummer...
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Old 11-19-2008, 02:47 PM   #22
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i can't contribute any more unless i have earned income, not married yet so i can't do spousal IRA. bummer...
Hmm, that may be the only thing you cannot do because you are unmarried.

Now contrast that to all the things that you will not be able to do when you are married.

Ha
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Old 11-19-2008, 03:01 PM   #23
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Approximately 5% of my portfolio is in rental properties, professionally managed, which are paying their way while I build long term equity. That's more than I can say for my other investments right now and I appreciate the stability they are providing.
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Old 11-19-2008, 04:26 PM   #24
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Got 1% in US REITs and 1% in foreign REITs, I'd like to have about 3-4% in each eventually as part of AA. But I have personal rental property where the current equity represents about 30% of assets. These spin off nice income with lower tax consequences than normal investments. Of course I have to add my own sweat equity to keep the money machine going. But shoot, we've got to do something will all that free time, right?
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Old 11-24-2008, 01:02 PM   #25
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Thank you for replies.

Any comments on owning REITs vs a mutual fund which owns many REITs and other real estate stocks (like home depot and similar)?
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Old 11-24-2008, 03:15 PM   #26
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Thank you for replies.

Any comments on owning REITs vs a mutual fund which owns many REITs and other real estate stocks (like home depot and similar)?
Unless you are very wealthy, want to spend a lot of time on it, and plan to make $300,000 plus investment in REITs , I would go with the fund.

I would also expect that a very good REIT fund manager might be less good at picking peripheral industries like home improvement.

Ha
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Old 11-24-2008, 06:21 PM   #27
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My problem with REIT fund is similar to my problem with a Bank ETF. Their are a lot of crappy banks and crappy REIT, index funds need to own that bad with a good.

But as Ha suggested you do want some level of diversification 5 of the 6 REIT I owned over the last year have held up reasonably well but the other one really collapsed and is cutting its dividend.

Personally, I continue to be impressed with the conservative nature and shareholder focus of Realty Income O
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Old 11-24-2008, 07:31 PM   #28
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My problem with REIT fund is similar to my problem with a Bank ETF. Their are a lot of crappy banks and crappy REIT, index funds need to own that bad with a good.

But as Ha suggested you do want some level of diversification 5 of the 6 REIT I owned over the last year have held up reasonably well but the other one really collapsed and is cutting its dividend.

Personally, I continue to be impressed with the conservative nature and shareholder focus of Realty Income O
I started to accumulate some O stock this month and was really rather alarmed to watch it plummet in the last couple of weeks. I had thought it was beaten down enough already and that it has a strong balance sheet and not a lot of leverage (which is what was/is bringing down REITs so extremely, the way I understand things). I did average down a bit, with an average price of just under $21 right now. It has bounced back dramatically the last two trading days, as you are well aware of, so I'm feeling much better. Now I just wish I had bought more last week at $15 and change! I actually hope I get another chance down in that area.

I know there's some risk with the economic downturn but they do have a very good record so I'm optimistic that dividends won't be cut and we'll get a nice rise in share price eventually.

Any thoughts on any of the closed end REIT funds? I've been watching some of the Cohen & Steers funds and they've been annihilated this year and are quite volatile. The leverage is the big issue of course and it's hard to know just how to value them right now. Clearly their yields are outsized and they are returning capital and will continue to do so. I'm not sure how that will all play out in the longer run. I'm tempted to take a small speculative position and see how it turns out. It just may be an opportunity for some fire sale assets.
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Old 11-24-2008, 10:36 PM   #29
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I got out of REIT stocks at about the right time but started getting back in a little early in January, 2008.

I have been investing in my two favorites, Washington Real Estate (WRE) and Weingarten Realty (WRI) all year as they fell further and further, buying my last shares on last Friday.

IMHO, both are amazing buys at this time and pay a great dividend.

Cheers,

charlie
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Old 11-24-2008, 11:03 PM   #30
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My problem with REIT fund is similar to my problem with a Bank ETF. Their are a lot of crappy banks and crappy REIT, index funds need to own that bad with a good.
That's the very reason why Morningstar doesn't recommend VGSIX (VG REIT index). They argue that a managed REIT fund would be a better choice because the manager can pick the winners and leave out the losers. Yet if you look at VGSIX's % rank in its category, it has been right around 50% for the past 1-year, 3-year, 5-year and 10-year periods. In other words, half of all REIT fund managers underperform the index on a regular basis... So why not stick with the index fund and avoid manager risk? Of course if you can find a manager who can outperform the index years in and years out, you are golden, but last year's winner can become next year's loser, so good luck finding that rare gem...
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Old 11-25-2008, 07:10 AM   #31
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Target allocation is 5% in VGSNX. Actual allocation is about half that, I'll top it off in the new year.
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Old 11-25-2008, 08:03 AM   #32
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I am back to 75% real estate - thanx to the stock implosion. Tried the OPM thing (100% financing) in the late 80's ... got burned; will never touch that stove again.

While the rentals are down about the same as the stocks, the rentals look stable by comparison. And the rents are worth the effort.
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