You are likely familiar with the potential benefits and risks of investing in stocks and bonds, but are you aware of real estate as an asset class? Today, many investors look to real estate products that invest in the domestic and/or international real estate market (e.g., office, retail, industrial, multifamily properties). Typically, they select investment products that either own real estate directly or invest in real estate investment trusts (REITs).1
1 REITs: Similar to a closed-end investment company, but organized to manage a portfolio of real estate investments and distributes to its shareholders at least 95% of its net earnings annually. Usually traded publicly, REITs often specialize in office buildings, shopping centers, or hotels
2 May 2012.
Real estate investments, like other asset classes, come with certain risks. Real estate markets can be volatile depending on economic conditions and construction cycles. REITs are subject to market risk, company risk, real estate risk, interest rate risk, small cap risk, and income volatility risk.
Diversification is a technique to help reduce risk. There is no guarantee that diversification will protect against a loss of income.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161, or go to www.tiaa-cref.org/public/prospectuses for a current prospectus that contains this and other information. Please read the prospectus carefully before investing.
Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
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This material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons.
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