Should You Add Real Estate to Your Retirement Portfolio?

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Should You Add Real Estate to Your Retirement Portfolio?
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Here are some things to consider if you’re thinking about adding income-producing real estate to your retirement portfolio.

If you’re picking just a couple of stocks for your whole portfolio, you’re not investing—you’re trading. WSJ’s Telis Demos explains the benefits of diversifying your investment portfolio. Photo: StoryblocksWhether it is a physical property, such as an apartment building, or an investment in a real-estate investment trust or mutual fund, many financial-planning professionals say that income-producing real estate is an essential part of a well-performing retirement portfolio.

“In our research, we found that portfolios that have a mixture of stocks, bonds and real estate outperform other portfolios,” said Ken. H. Johnson, Ph.D., a real-estate economist at Florida Atlantic University. “You get a better risk/return profile from owning real estate.”

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