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

Due to their particular tax status, REITs must follow strict compliance standards and thus carry a certain quality standard for both 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 value of the stocks, resulting in a liquidity premium, or a price that all investors pay for the capability to buy and sell the asset whenever they desire.

What's more, publicly-traded REITs tend to be correlated to wider 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 all the underlying properties owned by the REIT. .

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On the other hand, public non-traded REITs are becoming popular, because of their possible double-digit dividends. However, 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 decades, pioneering new platforms such as Fundrise have emerged. Fundrise aims to offer the benefits of personal market accessibility, but with lower fees that potentially help investors earn superior returns. Leveraging technology and new federal regulations, Fundrise provides investors that the very first ever diversified commercial real estate investment portfolio available directly online to anyone in the United States, no matter their net worth.

Irrespective of which investment plan 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 eliminate any pre-existing biases. Take time to determine which approach makes the most sense for youpersonally, and carefully compute your residual income goals.

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When looking at income in the long run, 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 now, viewing our decisions with money as the pre-cursor of tomorrow The reason we even talk about residual income is thats the aim of retirement or what we prefer to call time liberty. .

When you retire, your Social Security income plus pensions, if they are left, and dividends and interest off of your investments and perhaps an income annuity will meet your needs and hopefully surpass them, and that means you can walk away from the 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 objective is to have residual income when we retire, which seems 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 maybe dont have an age limit into our 60s What guarantee do we have that we'll make it long.

Furthermore, what control do we really have over Social Security and our 401Ks Looking at the origins of residual income, lets take a look at other high-level places we could 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 inventory of where you're at is so crucial. Are you currently doing one of those seven Dont be confused, not all businesses or investments are remaining, in our own opinion.

Residual 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 most men and women concentrate on earning: linear income, which can be one-shot compensation or payment in the form of a fee, wage, commission or salary.

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