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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.

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

There are two primary kinds of public REITs: traded and non-traded. Publicly-traded REITs give the benefits of money, because it is traded openly on a stock exchange. However, this liquidity is very likely to be priced into the value of these shares, resulting in a liquidity premium, or a cost that most investors pay for the capability to get and sell the advantage whenever they wish.

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 exchange 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 are becoming more 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 questionable practices around the disclosure of these fees.

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

Regardless of which investment plan you opt to pursue to earn residual income, an essential part of the investment process is careful due diligence of every opportunity as it appears and working hard to eliminate any pre-existing biases. Take your time to determine which approach makes the best sense for youpersonally, and carefully calculate your residual income goals.

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

When looking at income in the future, shouldnt we be 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 achieve now, viewing our decisions with money as the pre-cursor of tomorrow The reason we even talk 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, plus dividends and interest off of your investments and perhaps an income annuity will meet your needs and hopefully exceed them, and that means you can walk away from the day job.

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

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Consequently, if the objective is to have residual income when we retire, that seems based on Social Security rules to only be image source possible in our 60s, and the government has mandated penalties before taking our money before 59.5, wouldnt it be prudent to begin investing in resources of residual income now that maybe dont have an age limitation into our 60s What guarantee do we have that we'll make it that long. important source

Additionally, what control do we really have over Social Security and our 401Ks Looking at the sources of residual income, lets take a peek at other high tech places we could 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 stock of where you're at is so crucial. Are you currently doing one of these seven Dont be confused, not all businesses or investments are remaining, in our own opinion.

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

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