Inflation will get worse before it gets better. Central Bank expects headline inflation to average 4.5 % to 5.5 % while core inflation to be up to 3.5 %.
We cannot avoid the impact of higher prices on our purchasing power. No matter how we try, our savings will be erided, our disposable income will be reduced and our standard of living will drop due to higher costs of living.
One probable avenue is to reap some passive income higher than the inflation rates. Reits offer a resilient source of income. Dividends from Reits are also tax exempt. Rising interest rates does affect reits but its effect is not as severe as it can usually pass to tenants through rental revisions.
Now is the time to buy reits as they have generally fallen in prices but the fallen price represents a higher yield.
Now is the time to buy reits. There are many choice reits to buy depending on your preference. Personally I like reits with strong sponsor and solid track records.
One reits stood out for me. It is $MAPLETREE LOGISTICS TRUST(M44U.SI)$ . It is valued at $13.1B. The percent of distribution per unit in cents to unit holders increase 5.5 % yoy and distribution per unit is 8.787 per unit, according to its annual report 21/22.
I hold this reits for more than a decade, and still holding it today to enjoy good DPU to beat inflation and extra pocket money for little luxuries in life.
Just sharing with fellow Tigers on coping with inflation and planning for another source of retirement income.
As usual invest based on your investment objectives and time horizon. Do your own research. Best wishes.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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