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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

July/August 2020

Getting Real

House with green roof

Real estate is a way for investors to grab a personal piece of the American Dream — their own homes — but it may also prove to be a smart addition to your investing strategy while potentially providing a steady stream of income.


What’s a REIT?
A Real Estate Investment Trust (REIT)* must organize as a corporation, trust, or association managed by at least one trustee or director, and it must include transferable shares held by 100 or more persons, among other requirements.


Through a REIT, investors buy shares of properties like office buildings, hotels, warehouses, shopping centers, consumer housing rentals and mortgages. REIT shareholders don’t have to manage the daily upkeep of these properties as they would if they owned these or any properties directly.


Don’t confuse REITs that trade on public exchanges with non-traded REITs and private real estate funds. The latter type of real estate investment is not subject to the same extensive rules that govern REITs, and their shares often will not be as liquid as REIT shares.


Part of the Picture
Often considered a fourth asset class (along with stocks, bonds and money markets), many REITs have high liquidity because they trade on public exchanges. They must return 90% of their income to shareholders as dividends, and they’re subject to many of the rules other publicly traded investments must follow.


While REITs provide a way to diversify among asset classes, they may also offer diversification** within the asset class. For instance, a REIT may include commercial and residential properties that vary by type, geographic location and income expectations


Before investing in a REIT, you need to understand whether or not it is publicly traded, and how this could affect the benefits and risks to you. Ask your investment professional for more information about REITs.


*REITs involve risks such as refinancing, economic conditions in the real estate industry, change in property values, dependency on real estate management and other risks associated with a portfolio that concentrates its investments in one sector or geographic region. Shares of any REIT are not suitable for all investors.
**Diversification does not ensure a profit or protect against loss in a declining market. Past performance won't guarantee future results.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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