Sunday, May 17, 2009

Financial Freedom Through REITs and Real Estate Mutual Funds

What have you done to secure your financial freedom in the future? If you are in your 20s, 30s or even your 40s you may not yet have thought about the possible things you need to be doing to make sure you have the money you need set aside when it comes time for you to enjoy your golden years. But this is something you need to be thinking about and working on now.

In addition to thinking of your retirement years, if you start working on your plan for financial freedom now, you may be able to enjoy it and take advantage of it sooner as well. So, think of this as an investment in your ability to enjoy more of life down the road.

So, now you need plan. Perhaps you have started with a 401k, a Roth IRA or other investment account. Maybe you have some cash put aside in an interest-bearing savings account. All of these are a good start to making sure you have money available, but you can always do more.

The key to starting another investing option is to think about where would be a wise place to put your money. You want to make sure you will have something at the end of the day, even if there are bad market times ahead. To this end you will want to choose investments that will not disappear.

This past year in the market has shown us that there are a lot of investments around that could well disappear in just a bad day on the market. In this down economy, how many businesses have you heard of that have gone under and disappeared? Plenty of them. If your money were all put into stocks with those companies, you would have had nothing left at the end of the day.

Instead, you need an investment that will not lose all of its value. Real Estate Investment Trusts (REITs) and real estate mutual funds are this type of investment. Here's why.

When you purchase into REITs and real estate mutual funds, you will be not just purchasing one stock, but a number of stocks, bonds and other Wall Street offerings that are all lumped into one portfolio. This gives you a better chance that even if one of the stocks, bonds or mutual funds inside the portfolio have a bad day, the rest of the portfolio will negate that.

Additionally REITs and real estate mutual funds are based on real estate. While values may fluctuate, real estate will not lose 100% of it's value, as it is based on something tangible, not a business idea.

When you're ready to start investing in real estate you will want to work with a company like is the first and only online brokerage that specializes in real estate investment trusts and real estate mutual funds. Not only can you buy, sell, and organize your portfolios online with, but you can also be kept up to date with the latest news, trends and reports that are specifically geared towards your investments.

This article was written by Earl E. Bird, spokes person for the, a site dedicated to educating Real Estate Investors on how to invest in Real Estate Mutual Funds to diversify their investing portfolio. Read a great collection of articles on REITs at

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