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

On account of their special 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 key types of people REITs: traded and non-traded. Publicly-traded REITs offer the benefits of money, because it is traded openly on a stock exchange. However, this liquidity is likely to be priced into the worth of the stocks, resulting in a liquidity premium, or a price that all investors pay for the capability to buy and sell the asset whenever they wish.

What's more, publicly-traded REITs tend to be connected 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 are becoming more popular, because of their potential double dividends. But, 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 these fees.

In the past few decades, pioneering new platforms such as Fundrise have emerged. Fundrise aims to offer you the benefits of personal market access, but with lower prices that potentially assist investors earn superior returns. Leveraging technology and new federal regulations, Fundrise offers investors that the first ever diversified commercial property investment portfolio accessible directly online to anyone in the United States, no matter their net worth.

Regardless of which investment strategy you decide to pursue to earn residual income, an essential portion of the investment process is careful due diligence of each opportunity as it arises and working hard to remove any pre-existing biases. Take your time to determine which strategy makes the most sense for youpersonally, 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 future, shouldnt we're looking at what is going to happen and determine whether 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 freedom. .

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 our website annuity will meet your needs and hopefully exceed them, so you can walk away from the 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 little piece back when we retire (even though it is taxed in retirement again).

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Consequently, 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 begin investing in sources of residual income now that perhaps dont have an age limitation into our 60s What guarantee do we have that we will make it long.

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

Earning income has two real 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 the majority of people focus on earning: linear income, that is 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! Thus, we're going to use the first definition for the sake of the document. .