Author Topic: REIT strategy for retirement accounts  (Read 1696 times)

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Offline Panda

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Re: REIT strategy for retirement accounts
« Reply #15 on: September 17, 2019, 11:39:17 AM »
Any of you guys still holding AGNC? The yield is currently at 12.17%.

AGNC is a long term investment that pays a monthly dividend. You win in the long run by reinvesting the dividends and multiplying your shares. I believe that the shares are attractively priced at this time.
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Offline zubs

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Re: REIT strategy for retirement accounts
« Reply #16 on: September 17, 2019, 11:44:11 AM »
I watched AGNC hit $14.60 2 weeks ago and didn't pull the trigger, so I don't have any. 


I know you are talking long term, but seeing it fluctuate like crazy is kind of off putting. 
I actually have CIM.
« Last Edit: September 17, 2019, 11:51:20 AM by zubs »

Offline Panda

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Re: REIT strategy for retirement accounts
« Reply #17 on: September 17, 2019, 11:54:19 AM »
The form 8k was filed few weeks ago which verifies that AGNC has been executing the share buyback program.
We probably won't hear exactly how many shares have been repurchased until the quarterly report, but that's great news for shareholders who've held through the last few months. Think of AGNC and NLY as the two Blue Chips of mREITS.
« Last Edit: September 17, 2019, 12:00:21 PM by Panda »
James Park, MBA
Investment Real Estate Broker
CalBRE# 01894781, NMLS License # 1572291
Direct: (678) 865-6250
Email: jpark@johnscreekrealtypartners.com

http://www.biggerpockets.com/users/Panda
http://www.johnscreekrealtypartners.com

Offline Liar Loan

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Re: REIT strategy for retirement accounts
« Reply #18 on: September 17, 2019, 12:43:56 PM »
I would be extremely cautious with AGNC.  Don't get caught in the yield-chasing trap!  The stock price is down 29% from the peak two years ago, and even adjusting for dividends received you would be down about 8.5% from that peak.

You may argue that this makes it an attractive "value" stock at current levels, but it's still in a 2-year+ downtrend with no signs of letting up.  Wait until there are clear signs that the trend has shifted in a positive direction if you are determined to buy this stock.  With all of the uncertainty with the bond market, Fed rate policy, and real estate starting to decline in major markets, I wouldn't touch AGNC with a ten-foot pole.

Remember, mortgages loans are backed by real estate!  Falling collateral values means higher risk.

Offline Kings

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Re: REIT strategy for retirement accounts
« Reply #19 on: September 17, 2019, 12:47:21 PM »
I would be extremely cautious with AGNC.  Don't get caught in the yield-chasing trap!  The stock price is down 29% from the peak two years ago, and even adjusting for dividends received you would be down about 8.5% from that peak.

You may argue that this makes it an attractive "value" stock at current levels, but it's still in a 2-year+ downtrend with no signs of letting up.  Wait until there are clear signs that the trend has shifted in a positive direction if you are determined to buy this stock.  With all of the uncertainty with the bond market, Fed rate policy, and real estate starting to decline in major markets, I wouldn't touch AGNC with a ten-foot pole.

Remember, mortgages loans are backed by real estate!  Falling collateral values means higher risk.

i'm counting on my $1k free money per month to offset any losses from my agnc investment.  thanks yang gang!

Offline zubs

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Re: REIT strategy for retirement accounts
« Reply #20 on: September 17, 2019, 12:53:50 PM »
Speaking of stocks, I bought BP like a month ago at 38...and it dropped all the way down to 35..and then popped back up to 39 yesterday where I sold it.

Today, I thank the Iranians for blowing up the Saudi oil fields.

Offline momopi

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Re: REIT strategy for retirement accounts
« Reply #21 on: September 17, 2019, 01:07:47 PM »
Any of you guys still holding AGNC? The yield is currently at 12.17%.

AGNC is a long term investment that pays a monthly dividend. You win in the long run by reinvesting the dividends and multiplying your shares. I believe that the shares are attractively priced at this time.


I have AGNC and NLY in my IRA account.

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Offline Panda

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Re: REIT strategy for retirement accounts
« Reply #22 on: September 17, 2019, 01:26:40 PM »
Smart man. I like the way you roll.  8)
Any of you guys still holding AGNC? The yield is currently at 12.17%.

AGNC is a long term investment that pays a monthly dividend. You win in the long run by reinvesting the dividends and multiplying your shares. I believe that the shares are attractively priced at this time.


I have AGNC and NLY in my IRA account.


James Park, MBA
Investment Real Estate Broker
CalBRE# 01894781, NMLS License # 1572291
Direct: (678) 865-6250
Email: jpark@johnscreekrealtypartners.com

http://www.biggerpockets.com/users/Panda
http://www.johnscreekrealtypartners.com

Offline zubs

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Re: REIT strategy for retirement accounts
« Reply #23 on: September 17, 2019, 01:31:56 PM »
I back doored all my IRA accounts into ROTH IRA

Offline Liar Loan

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Re: REIT strategy for retirement accounts
« Reply #24 on: September 17, 2019, 02:04:20 PM »
I back doored all my IRA accounts into ROTH IRA

Smart man. I like the way you roll.  8)

The current tax rates under Trump make this an optimal time to convert assets to a ROTH.

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Re: REIT strategy for retirement accounts
« Reply #25 on: September 23, 2019, 05:45:00 PM »
 8)
James Park, MBA
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Offline Liar Loan

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Re: REIT strategy for retirement accounts
« Reply #26 on: September 23, 2019, 06:18:34 PM »
 ;)

Offline qwerty

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Re: REIT strategy for retirement accounts
« Reply #27 on: September 24, 2019, 12:16:10 AM »
So why not put your entire IRA in a levered ETF? Average market returns are what, about 8% per year? Why not not double it and get 16%?

Offline aquabliss

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Offline Liar Loan

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Re: REIT strategy for retirement accounts
« Reply #29 on: September 24, 2019, 08:47:27 AM »
This is the meat of the article:

What many investors don’t recognize is that leveraged ETFs are rebalanced daily. Since leverage needs to be reset on a daily basis, volatility is your greatest enemy. This probably sounds strange to some traders. In most cases, volatility is a trader’s friend. But that's certainly not the case with leveraged ETFs. In fact, volatility will crush you. That’s because the compounding effects of daily returns will actually throw off the math, and can do so in a very drastic way.

For example, if the S&P 500 moves down 5%, a fund like the SSO should move down 10%. If we assume a share price of $10, the SSO should be down to about $9 after the first day. On the second day, if the S&P 500 moves up 5%, over the two days the S&P 500 return will be -0.25%. An unaware investor would think the SSO should be down 0.5%. The 10% increase on day two will bring shares up from $9.00–$9.90, and the SSO will, in reality, be down by 1%. It decreases a full four times the decline of the S&P 500.

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But if anybody would like to try their luck, I found a 2x leveraged mREIT fund that pays a 24.62% dividend yield.

https://finance.yahoo.com/quote/MORL?p=MORL&.tsrc=fin-srch

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