Why might real estate be included in a qualified retirement plan's investment portfolio?

Including real estate in a qualified retirement plan's investment portfolio serves as a hedge against future inflation. Real estate often appreciates over time and can generate income through rent, which tends to increase along with inflation. As the price of goods and services rises, the value of real estate and rental income can also rise, helping to preserve the purchasing power of the investments. This quality makes real estate a valuable asset to counteract the eroding effects of inflation on retirement savings over the long term.

Other options may seem attractive but do not align as closely with the primary benefit of real estate in retirement planning. For instance, providing liquidity is more characteristic of marketable securities than real estate, which typically requires more time and effort to sell. Increasing risk exposure might be a consideration in certain strategies, but incorporating real estate should focus on diversification and stability rather than added risk. Lastly, while real estate can generate returns, it does not guarantee immediate returns like some other investment vehicles.