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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 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 thus 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 offer the benefits of money, because it is traded openly on a stock exchange. However, this liquidity is very likely to be priced into the worth of the stocks, resulting in a liquidity premium, or a price that all investors pay for the ability to buy 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 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 last couple of years, pioneering new platforms like Fundrise have emerged. Fundrise intends to offer you the benefits of personal market accessibility, but with lower prices that potentially help investors earn better returns. Leveraging technology and new federal regulations, Fundrise provides investors the very first ever diversified commercial property investment portfolio accessible right 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 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 your time to determine which approach makes the best sense for youpersonally, and carefully compute your residual income objectives.

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When looking at income in the future, shouldnt we're looking at what is going to happen and determine if 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 thats the goal of retirement or what we like to call time liberty. .

When you retire, your Social Security income and pensions, if they are left, plus dividends and interest off of your investments and maybe an income annuity will meet your needs and hopefully exceed 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 every paycheck and we receive a little piece back when we retire (even though it is taxed in retirement again).

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

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

Earning income has two actual 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 men and women concentrate on earning: linear income, that is one-shot compensation or payment in the form of a commission, wage, commission or salary.

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