Final answer:
Real estate can be included in a qualified retirement plan to provide income, capital gains, and portfolio diversification.
Step-by-step explanation:
A qualified retirement plan may include real estate as one of its investment assets for several reasons:
- Real estate can provide a steady source of income through rental payments or lease agreements, which can contribute to the overall growth of the retirement account.
- Real estate can appreciate in value over time, allowing the retirement plan to benefit from capital gains when the property is sold.
- Investing in real estate provides diversification within the retirement portfolio, reducing the risk of relying solely on other investment assets like stocks or bonds.
These factors make real estate a viable option for qualified retirement plans to enhance long-term financial stability and growth.