In this episode of Retire with Style, Wade Pfau and Alex Murguia explore real assets- focusing on real estate and infrastructure- and their role in retirement portfolios. They discuss the pros and cons of residential and commercial property ownership, the value of REITs, and the potential of infrastructure investments. The conversation highlights the importance of diversification and understanding the risk-return tradeoffs of these asset classes. Listen now to learn more!

Takeaways

• Real assets—like real estate and infrastructure—can play a valuable role in retirement portfolios.
• These assets can improve portfolio efficiency by enhancing return relative to risk.
• REITs offer accessible exposure to real estate without requiring accredited investor status.
• Owning residential property often requires active management and can feel more like a job than a passive investment.
• Commercial real estate tends to provide more stable income through longer-term leases.
• Infrastructure investments can offer steady cash flows and some protection against inflation.
• Diversification remains key to effectively managing portfolio risk.
• 1031 exchanges allow investors to defer capital gains taxes when selling real estate.
• Water rights represent a niche but growing area of investment opportunity.

Chapters

00:00 Introduction to Real Assets 02:00 Understanding Real Estate in Portfolios 08:04 The Role of Residential Real Estate 16:01 Exploring Commercial Real Estate 28:05 Infrastructure as an Investment 33:44 Conclusion and Future Topics

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