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

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There are two key types of people REITs: traded and non-traded. Publicly-traded REITs give the benefits of liquidity, because it is traded openly on a stock exchange. But this liquidity is very likely to be priced into the value of the stocks, resulting in a liquidity premium, or a cost that all investors pay for the capability to get 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, irrespective 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 popular, due to their potential double dividends. However, public non-traded REITs have recently come under heavy scrutiny due to the large upfront fees often charged to investorsand dubious practices around the disclosure of these fees.

In the past couple of years, pioneering new platforms like Fundrise have emerged. Fundrise intends to offer the benefits of private market accessibility, but with reduced fees that potentially assist investors earn better returns. Leveraging technology and new national regulations, Fundrise offers investors that the first ever diversified commercial real estate investment portfolio available 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 procedure is careful due diligence of each opportunity as it arises and working hard to remove any pre-existing biases. Take your 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 my latest blog post 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's what we want life to look like We need to work backward from this 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 thats 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 from your investments and perhaps an income annuity will fulfill your needs and hopefully surpass them, so that you can walk away from your day job.

Dividends and interest are a form of residual income. Social Security certainly is, that the government takes money from us each 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 goal is to get 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 prior to 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 limit into our 60s What guarantee do we have that we will 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 have a look at other high tech places we could diversify. Who knows, maybe you could begin generating residual income now and step into that time independence sooner than your 60s.

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

Earning income has two actual definitions. Lets look at these . 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, which can be one-shot compensation or payment in the kind of a commission, wage, commission or salary.

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

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