The Center for Retirement Initiatives (CRI) is a research center of Georgetown University’s McCourt School of Public Policy, one of the top-ranked public policy programs in the nation. Through its academic reputation and ability to engage with policymakers, business leaders, and other stakeholders, the McCourt School attracts worldclass scholars and students who have become leaders in the public, private, and nonprofit sectors.
Private real estate investments typically only available for institutional and wealthy investors can be a stable hedge against inflation and volatility. They’re available for DC retirement plans, but uptake so far has been slow.
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Defined benefit plans, endowments, and foundations have long enjoyed the benefits of investing in private real estate, namely diversification, lower volatility of returns, a hedge against inflation, and the potential for improving risk-adjusted investment performance,
Real estate is tangible property consisting of land and improvements (buildings). Real estate can be divided into two categories: commercial and residential. Commercial real estate refers to the direct ownership of income-producing properties including industrial/warehouse, office, and retail buildings, as well as segments such as medical office and self-storage. Although technically residential, rental apartments (including student housing) are also often classified as commercial real estate.
The Pension Protection Act of 2006 (the “PPA”) gave a boost to the movement to better diversify defined contribution plan portfolios.
options” or “QDIAs,” which are discussed in
more detail below.