NEW YORK ( TheStreet) -- When it comes to retirement and savings, REITs are well positioned to play an important role -- both as an investment to help build a retirement portfolio and also to provide income to meet living expenses. It's important to remember that REITs are forced, by law, to payout at least 90% of their taxable income to their shareholders in dividends -- a crucial differentiation that makes the income highly sustainable, in good times and bad.Another key differentiator is that REITs are low to moderately correlated with non-REIT stocks and bonds; conversely, over the long term, REITs help to reduce overall portfolio volatility and cushion the "zigs and zags" caused by Mr. Market, prior to and during the retirement years. Also, REITs are a proven and effective hedge that can help shield portfolios against inflation. As you know, rising inflation can sap the sweetness out of a retirement portfolio faster than my daughter can spend $300 at Forever 21. (Sorry Lauren, but you know it's true).
Ready for Retirement: 3 Health Care REITs That Outperform
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