Mlp Investments
Should I have REIT/MLP Investments in my 401k?
Is this wise?
I think you should — diversification is a good idea and REITs are a good long-term alternative to stock funds — they’re high-return and high-volatility (like stocks), but not necessarily in the same way. So over the long haul (until you turn 59.5), you’re likely to get good returns from the combination of REIT, large-cap stocks, small-cap stocks, and international stocks. One fourth of your 401k in each would be reasonable, then move it towards bonds (for stability) as you approach retirement.
Good luck,
Doug
What are MLPs? Investment Information