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In 1960, Congress passed a law creating Real Estate Investment Trusts (REITs), big portfolios of income-producing real estate investments. A REIT is required by law to distribute 90 percent of its earnings to investors every year. Today, an estimated 70 million Americans invest in REITs.

Due to their particular tax status, REITs must follow strict compliance standards and therefore carry a certain quality standard for both the vehicles investment plan and the real estate experience of the managing team.

There are two primary types of people REITs: traded and non-traded. Publicly-traded REITs give the benefits of liquidity, because it is traded openly on a stock exchange. However, this liquidity is very likely to be priced into the worth of these shares, resulting in a liquidity premium, or a cost that most investors pay for the ability to buy and sell the advantage whenever they desire.

What's more, publicly-traded REITs tend to be correlated to broader market volatility, meaning that the share value may fluctuate depending on how the stock market is doing, regardless of whether or not anything has changed with all the underlying properties owned by the REIT. .

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On the other hand, public non-traded REITs have become popular, due to their possible double-digit dividends. However, public non-traded REITs have recently come under heavy scrutiny due to the large upfront fees often charged to investorsand questionable practices around the disclosure of those fees.

In the last couple of decades, pioneering new platforms such as Fundrise have emerged. Fundrise aims to offer you the benefits of personal market accessibility, but with lower fees that potentially help investors earn superior returns. Leveraging technology and new national regulations, Fundrise offers investors the first ever diversified commercial real estate investment portfolio accessible directly online to anyone in the United States, no matter their net worth.

Irrespective of which investment plan you opt to pursue to earn residual income, an essential part of the investment procedure is careful due diligence of each opportunity as it appears and working hard to remove any pre-existing biases. Take time to figure out which strategy makes the most sense for youpersonally, and carefully calculate your residual income objectives.

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Find out what's happening in Building Residual Income Meetup bands around the globe and start meeting up with all the ones near you.

When looking at income in the long run, shouldnt we're looking at what is going to happen and advice determine if that is what we want life to seem like We need to work backward from that point until we achieve now, viewing our decisions with money as the pre-cursor of tomorrow The reason we even talk about residual income is the goal of retirement or what we prefer to call time liberty. .

When you retire, your Social Security income and pensions, if they're left, plus dividends and interest from your continue reading this investments and perhaps an income annuity will meet your needs and hopefully exceed them, so you can walk away from your day job.

Dividends and interest are a form of residual income. Social Security certainly is, the government takes money from us every paycheck and we get a small piece back when we retire (even though it's taxed in retirement again).

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So, if the objective is to have residual income when we retire, which seems based on Social Security rules to only be possible in our 60s, and the government has mandated penalties prior to taking our money before 59.5, wouldnt it be prudent to start investing in sources of residual income now that perhaps dont have an age limit into our 60s What guarantee do we have that we'll make it long.

Furthermore, what control do we really have over Social Security and our 401Ks Looking at the sources of residual income, lets take a look at other high-level places we can diversify. Who knows, maybe you could start generating residual income now and step into that time independence sooner than your 60s.

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Taking inventory of where you're at is so crucial. Are you currently doing one of those seven Dont be confused, not all businesses or investments are residual, in our opinion.

Earning income has two real definitions. Lets look at those first. Residual Income is income that continues to be generated following the initial effort has been expended. Compare this to what the majority of people concentrate on earning: linear income, which can be one-shot compensation or payment in the kind of a commission, wage, commission or salary.

We believe that income that exceeds your expenses is called PROFIT! So, we're going to use the first definition for the sake of the document. .