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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% of its earnings to investors every year. Today, an estimated 70 million Americans invest in REITs.

Due to their special tax status, REITs should follow strict 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 public REITs: traded and non-traded. Publicly-traded REITs offer the benefits of liquidity, because it is traded openly on a stock exchange. However, this liquidity is likely to be priced into the value of the shares, resulting in a liquidity premium, or a cost that all investors pay for the ability to buy and sell the asset whenever they wish.

Furthermore, publicly-traded REITs tend to be correlated to broader market volatility, meaning that the share value may fluctuate depending on how the stock exchange 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 last few years, pioneering new programs like Fundrise have emerged. Fundrise intends to offer you the benefits of personal market accessibility, but with reduced prices that potentially assist investors earn superior returns. Leveraging technology and new national regulations, Fundrise provides investors the first ever diversified commercial real estate investment portfolio available 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 part of the investment process is careful due diligence of each opportunity as it appears and working hard to remove any pre-existing biases. Take your time to figure out which approach makes the most sense for youpersonally, 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 get started 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 if that is what we want life to seem like We need to work backward from this 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 aim 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 maybe an income annuity will meet your needs and hopefully surpass them, so that you can walk away from your day job.

Dividends and interest are a sort of residual income. Social Security certainly is, the government takes money from us each paycheck and we receive a small piece back when we retire (even though it's taxed in retirement again).

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So, if the goal is to have residual income when we retire, that 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 More Bonuses that maybe dont have an age limit into our 60s What guarantee do we have that we'll make it long.

Additionally, what control do we really have over Social Security and our 401Ks Looking at the origins of residual income, lets take a peek at other high tech click for more info 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 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 opinion.

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

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