Your Roth Is Your REIT's Best Friend. Here's Why.

If you are retired and looking to live off of the income your portfolio generates, then real estate investment trusts (REITs) are likely to be on your investment list. While they can generate a lot of income, there's a small problem with the business structure (more on this later). But when you pair a REIT with a Roth account, you can get something very attractive.At its core, a REIT is a company that owns physical property that it rents out to tenants. There are unique types of REITs that don't follow that mold, notably mortgage REITs, but traditional property-owning REITs are the most common. What makes a REIT different from a traditional company that owns property is that a REIT doesn't have to pay corporate-level taxes so long as 90% of taxable earnings get passed on to investors via dividends.Image source: Getty Images.Continue reading
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