I get asked often: “What about REITs?”
They sound attractive – steady dividends, monthly payouts, exposure to real estate without buying property yourself. But the truth is, REITs are not for everyone. Especially if you’re under 30 or 35 and still in the wealth-building phase of your life.
First, the Disclaimer
I am not a licensed investment or tax advisor.
Before you make any investment, consult with a professional who understands your specific situation, your country of domicile, and your tax environment.
What I’m sharing here is perspective, not prescription.
REITs: What They Offer
- Income, not growth.
REITs are structured to pay out most of their profits as dividends. That makes them useful for investors who want steady income streams. - Best for retirees.
If you’re in your 60s and want monthly income to support your lifestyle, REITs can be a good instrument. - Not built for compounding.
Because they pay so much out as dividends, REITs often don’t reinvest heavily into growth.
The Performance Reality
Since the Great Financial Crisis of 2008, most REITs have underperformed. Many have struggled to even beat inflation.
Yes, there are exceptions – data center REITs like Equinix or logistics players like Prologis have growth stories. But broadly speaking, REITs are slow-moving, income-oriented vehicles.
If you’re young and looking to build wealth, that’s not where your money should go.
The Better Path: Growth ETFs
If you are under 35, the simplest and most effective route for wealth-building is growth ETFs, especially something like the QQQ (Nasdaq 100).
- QQQ is packed with the world’s leading technology and growth companies.
- Over 20+ years, the compounding power of QQQ has crushed most other asset classes.
- According to your domicile, you should pick the ETF structure that gives you the best tax treatment (e.g., U.S.-domiciled vs Ireland-domiciled if you live in Europe).
Why Dollar-Cost Averaging Matters
Don’t try to time the market.
Buy consistently – weekly or monthly – no matter if the market is up or down.
This is called Dollar-Cost Averaging (DCA).
It works because:
- You buy more shares when prices are low.
- You buy fewer shares when prices are high.
- Over decades, your average cost per share drops.
I explained this more deeply in my piece on Quant Compounding ™ — how frequency of buying adds extra points to your annual returns, which in 21 years turns into a huge difference.
My Advice in One Sentence
If you’re young and chasing growth:
→ Avoid REITs.
→ Stick with growth ETFs like QQQ.
→ Dollar-cost average.
→ Let compounding do the rest.
If you’re older and need income:
→ REITs can supplement your lifestyle with steady monthly dividends.
Wealth is not about chasing what sounds good on paper.
It’s about aligning the vehicle with your stage of life.
Before making any investment move, make sure your foundation is strong:
- 📌 11 Fundamental Money Concepts Everyone Should Master
- 📌 The Foundation of Wealth: Your Safety Net Strategy
- 📌 What is Risk-Adjusted Return (and Why Every Investor Must Understand It)
Without fundamentals, a safety net, and risk awareness, you’re not investing – you’re gambling.
#MunawarAbadullah #WealthWithMunawar #WisdomToWealth #MunawarPlaybook
