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In 1960, Congress passed a law creating Real Estate Investment Trusts (REITs), large portfolios of income-producing real estate 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 thus carry a certain excellent standard for both the vehicles investment strategy and the property experience of the managing team.

There are two key types of people REITs: traded and non-traded. Publicly-traded REITs offer the benefits of liquidity, because it is traded openly on a stock exchange. But this liquidity is likely to be priced into the value of these stocks, resulting in a liquidity premium, or a cost that most investors pay for the capability to buy and sell the advantage 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 the underlying properties owned by the REIT. .

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On the other hand, public non-traded REITs have become more popular, because of their potential double dividends. However, 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 those fees.

In the past few years, pioneering new programs like Fundrise have emerged. Fundrise aims to offer you the benefits of private market access, but with reduced fees that potentially assist investors earn superior returns. Leveraging technology and new federal regulations, Fundrise provides investors that the first ever diversified commercial real estate 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 every opportunity as it arises and working hard to remove any pre-existing biases. Take time to figure out which approach makes the best 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 the ones near you.

When looking at income in the long run, shouldnt we're looking at what's going to happen and determine click to investigate if that's 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 speak about residual income is thats the goal of retirement or what her latest blog we like to call time freedom. .

When you retire, your Social Security income and pensions, if they're left, and dividends and interest from 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 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's taxed in retirement again).

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Consequently, if the objective is to have residual income when we retire, that appears based on Social Security rules to only be possible in our 60s, and the government has mandated penalties before 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 will make it that long.

Furthermore, what control do we really have over Social Security useful reference and our 401Ks Looking at the origins of residual income, lets have a look at other high-level places we could 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 indeed crucial. Are you currently doing one of those seven Dont be confused, not all businesses or investments are residual, in our own opinion.

Earning income has two actual definitions. Lets look at these first. Residual Income is income that continues to be generated after the initial effort has been expended. Compare this to what most people concentrate 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 which exceeds your expenses is named PROFIT! So, we're going to use the first definition for the sake of the document. .