The Best REIT ETF For The Retiree: How To Get A 7% Return Or Better

This is the third in a series of articles attempting to put together a well-diversified $100 thousand portfolio of CEFs and/or ETFs that will return a minimum of 7% and maintain or enhance principal as well - a portfolio that offers the retiree cash dividends and distributions while continuing to hold on to principal, hoping to keep the money flowing without having to dip into one's capital.

If one is going to stay with a pure US REIT Fund, then one is left with RIF or VNQ as the best alternatives. If one has a long term outlook of over 5 years into the future, then choose VNQ. Eventually it will offer the 7% payout on the original capital and also offer fine capital accumulation over a long period of time based upon historical evidence. If one has a shorter term outlook, then choose RIF since it currently offers an almost 7% payout and has grown its payout year after year over the 5-year period. It does not exhibit the capital appreciation of the ETFs, but it does have the cash payout a retiree needs. If one is not sure, perhaps one could split the amount used for REITs between VNQ and RIF for a balanced approach to one's REIT investments.

Source: Seeking Alpha

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