I
want to dip into real estate without heavy risk or effort. Many retirees rely solely on Social Security, which typically replaces only about 40% of pre‑retirement earnings—often insufficient. I aim to build an investment mix that reduces dependence on those benefits, with real estate as a key component.

    I’m not interested in the traditional route of owning rental properties. Managing tenants, handling repairs, and dealing with rising maintenance and taxes would be too burdensome and costly. Instead, I’m focusing on real estate investment trusts (REITs), which own and operate income‑generating properties on behalf of investors.

    REITs offer several advantages:

    * **Diversification** – They add a real‑estate layer without buying a physical asset.

    * **Hands‑free income** – The trust handles all property management.

    * **High dividends** – By law, REITs must distribute at least 90% of taxable income to shareholders, often yielding higher payouts than typical dividend stocks.

    For retirees, REITs can provide a steady cash flow that complements Social Security. Even if you eventually own a rental property, REITs can still fit nicely into your portfolio, offering additional income streams and reducing overall risk.

    In short, if you’re looking to invest in real estate without the headaches of ownership, REITs are a compelling option to consider.