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In 1960, Congress passed a law creating Real Estate Investment Trusts (REITs), large portfolios of income-producing property investments. A REIT is required by law to distribute 90% of its earnings to investors each year. Now, an estimated 70 million Americans invest in REITs.

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

There are two key types of public REITs: traded and non-traded. Publicly-traded REITs offer the benefits of money, since it's traded openly on a stock exchange. But this liquidity is likely to be priced into the value of the shares, resulting in a liquidity premium, or a price that most investors pay for the ability to get and sell the advantage whenever they desire.

Furthermore, publicly-traded REITs tend to be correlated to broader market volatility, meaning that the share value may fluctuate depending on the way the stock exchange is doing, regardless of whether or not anything has changed with 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. But, public non-traded REITs have recently come under heavy scrutiny because of the large upfront fees often charged to investorsand dubious practices around the disclosure of these fees.

In the last couple of decades, pioneering new platforms like Fundrise have emerged. Fundrise intends to offer you the benefits of private market accessibility, but with lower prices that potentially assist investors earn better returns. Leveraging technology and new national regulations, Fundrise provides investors the first ever diversified commercial real estate investment portfolio available directly online to anyone in the United States, no matter their net worth.

Irrespective of which investment strategy you opt to pursue to earn residual income, an essential portion of the investment process is careful due diligence of each opportunity as it appears and working hard to remove any pre-existing biases. Take your time to determine which approach makes the best sense for you, and carefully compute your residual income objectives.

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Find out what's happening in Building Residual Income Meetup groups around the globe and get started meeting up with the ones near you.

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

When you retire, your Social Security income plus pensions, if they're left, and dividends and interest from your investments Look At This and perhaps an income annuity will meet your needs and hopefully surpass them, so you can walk away from the day job.

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

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

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

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

Residual income has two actual definitions. Lets look at those first. Residual Income is income which continues to be generated after the initial effort has been expended. Compare this to what most men and women focus on earning: linear income, which is one-shot compensation or payment in the form of a fee, wage, commission or salary.

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