One Retirement Investment I'm Refusing to Let Go: Why REITs Deserve a Permanent Spot

Building a secure retirement means more than just saving aggressively—it means making strategic choices about where your money goes. For me, one investment category stands out as too valuable to release from my portfolio: real estate investment trusts, commonly known as REITs. In fact, not letting go of this asset class is central to my retirement income strategy.

The core reason comes down to what REITs are designed to do. These companies generate returns by managing real estate portfolios, and they’re legally required to distribute at least 90% of their taxable income back to shareholders. This structure creates a powerful income stream that many traditional stocks simply can’t match.

Why REIT Income Matters When You Stop Working

Let me be direct about my retirement concerns. Social Security will provide some income, but it won’t be enough to live comfortably. That’s why supplementing those checks with reliable dividend income becomes essential. This is where REITs enter the picture.

The dividend yields from quality REITs often exceed what you’d receive from standard stock portfolios. That consistent cash flow isn’t just nice to have—it’s transformative when you’re no longer earning a paycheck. Imagine drawing income from your portfolio each month while the underlying real estate continues to appreciate. That’s the power of this approach.

The beauty of REITs extends beyond just income, though. They provide genuine portfolio diversification. You’re gaining exposure to residential properties through residential REITs, medical facilities through healthcare REITs, and distribution centers through industrial REITs. Each category carries different risk profiles and growth potential, allowing you to spread risk across multiple real estate sectors without actually purchasing and managing physical properties yourself.

Risks Are Real, But the Case for Hanging On Remains Strong

I’d be misleading you if I suggested REITs come without risk. Like all equities, REIT valuations fluctuate based on market conditions, interest rates, and economic outlooks. A broad market downturn can impact REIT performance just like any other stock holding.

Here’s where many investors make mistakes, though. They sell during downturns or abandon positions when volatility strikes. But if you’re in retirement and own income-producing assets like REITs, you’re actually in a stronger position than investors holding only growth stocks. When the market stumbles, your REIT dividends keep flowing. You can tap that income without being forced to sell depressed assets at a loss—a critical advantage when you can’t wait for recovery.

This is precisely why I’m not putting all my retirement eggs in the REIT basket. Diversification remains essential. But within a balanced portfolio, REITs provide a hedge that complements your overall strategy.

My Strategy: Not Letting Go of What Actually Builds Wealth

During retirement, I plan to trim certain stock positions and adjust my overall asset allocation. But REITs are the exception to that rule. My commitment here is firm—I’m holding these positions for the long term.

The philosophy is simple: identify assets that work harder for you in retirement, and protect them. REITs fit that profile perfectly. They generate income when you need it most, cushion volatility through steady distributions, and provide real estate exposure without landlord headaches.

As you evaluate your own retirement readiness, ask yourself which investments align with the income and stability you’ll actually need. For many people, the answer includes REITs. The decision to hold on—to refuse the temptation to bail during market turbulence—might be one of the wisest choices you make in building retirement wealth.

Consider consulting with a financial advisor to determine how REITs fit into your specific situation. Your retirement strategy should reflect your unique timeline, risk tolerance, and income needs. But if you’re looking for an asset that deserves permanent shelf space in a retirement portfolio, REITs have earned their place.