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One option for diversification (and protecting your retirement savings) is to invest in private real estate funds, such as those offered by private real estate investment firm DLP Capital, as an alternative to stocks and bonds. By investing in such private real estate funds and using funds in your retirement accounts, you could also earn passive income to supplement your retirement.

Real estate is a unique category. It can help diversify your portfolio, offering the potential for long-term capital appreciation. It can also provide steady cash flow from tenants paying rent.

Of course, this doesn’t mean having to go out and purchase properties on your own—you can leave it up to an experienced fund manager.

DLP Capital offers tax-advantaged, private REITs through various investment funds, which are primarily focused on acquiring or developing safe, affordable rental housing for working families across the burgeoning Sun Belt region. Investors in these funds can earn passive income through monthly, quarterly, or annual distributions while making a positive impact on American communities.

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Real estate as a retirement investment strategy

If you invest your retirement funds in private real estate funds, growth may be tax-free until you start withdrawing funds in retirement (though you’ll need to check with your financial advisor about which tax rules apply to which retirement accounts).

DLP Capital’s REITs are more liquid than direct real estate investments, such as purchasing properties on your own. DLP Capital has four funds: you choose which fund to invest in rather than which properties to invest in, which could benefit those new to real estate investing. In other words, DLP does the heavy lifting.

These investment funds make an impact by directly investing in the development, construction, financing and operation of workforce housing while still offering the potential for above-market returns. DLP’s Funds target potential annual returns from 9% to 13%, compared to the average S&P 500 return of 10.26%. It should be noted that past performance is not an indicator of future results.

Another value-add is DLP’s Prosperity Membership program, designed to help members make informed legacy plans. Membership includes will and estate planning, portfolio defense exercises, expert sessions and one-on-one consultations.

Getting started

For those looking to avoid or minimize market volatility, private real estate investment funds could offer an alternative for your retirement savings.  Not only could you receive passive income to supplement your golden years, but you could also potentially benefit from enhanced returns in your retirement accounts.

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Vawn Himmelsbach Freelance Contributor

Vawn Himmelsbach is a journalist who has been covering tech, business and travel for more than two decades. Her work has been published in a variety of publications, including The Globe and Mail, Toronto Star, National Post, CBC News, ITbusiness, CAA Magazine, Zoomer, BOLD Magazine and Travelweek, among others.

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