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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.

Due to their particular tax status, REITs must follow rigorous compliance standards and thus carry a certain excellent standard for both the vehicles investment plan and the property experience of the managing team.

There are two key types of public 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 these shares, resulting in a liquidity premium, or a cost that most investors pay for the ability 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 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, due to 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 couple of years, pioneering new programs like Fundrise have emerged. Fundrise intends to offer you the benefits of personal market accessibility, but with lower prices that potentially help investors earn superior returns. Leveraging technology and new national regulations, Fundrise offers 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 opt to pursue to earn residual income, an essential part of the investment process is careful due diligence of each opportunity as it arises and working hard to remove any pre-existing biases. Take time to determine which approach makes the best sense for youpersonally, and carefully compute 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 future, shouldnt we're looking at what's going to happen and determine if that's what we want life to look like We need to work backward from this point until we reach today, viewing our decisions with money as the pre-cursor of tomorrow The reason we even speak about residual income is the goal of retirement or what we prefer to call time liberty. .

When you retire, your Social Security income plus 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, so you can walk away from the 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 receive my website a little piece anonymous 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, which 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 start investing in sources of residual income now that perhaps dont have an age limitation into our 60s What guarantee do we have that we'll 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 take a peek 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, Source not all businesses or investments are remaining, in our opinion.

Residual income has two real definitions. Lets look at these . Residual Income is income which 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 form of a commission, wage, commission or salary.

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