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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. Now, 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 excellent standard for both the vehicles investment strategy and the real estate experience of the managing team.

There are two primary types of people REITs: traded and non-traded. Publicly-traded REITs offer the benefits of money, since it's traded openly on a stock exchange. However, this liquidity is likely to be priced into the value of these stocks, resulting in a liquidity premium, or a price that all investors pay for the ability to buy and sell the asset whenever they desire.

Furthermore, publicly-traded REITs tend to be correlated 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, due to their possible double-digit dividends. But, 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 few years, pioneering new platforms like Fundrise have emerged. Fundrise intends to offer you the benefits of private market access, but with lower fees that potentially help investors earn superior returns. Leveraging technology and new federal 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 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 strategy makes the best sense for you, and carefully compute your residual income goals.

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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 is going to happen and determine whether that is what we want life to look like We need to work backward from this point until we achieve today, 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 prefer 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 maybe an income annuity will fulfill your needs and hopefully surpass them, so that 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 small piece back when we retire (even though it's taxed in retirement again).

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Consequently, if the goal is to have residual income when we retire, which 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 resources of residual income now that perhaps dont have an age limit into our 60s What guarantee do we have that we'll make it that long.

Furthermore, what control do we really have over Social Security and our 401Ks Looking at the sources of residual income, lets take a peek other at other high tech places we could diversify. Who knows, perhaps 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 these seven Dont be confused, not all businesses or investments are remaining, in our opinion.

Residual 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 the majority of people concentrate on earning: linear income, which is one-shot compensation or payment in the form of a fee, wage, commission or salary.

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