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In 1960, Congress passed a law creating Real Estate Investment Trusts (REITs), large portfolios of income-producing real estate 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 special tax status, REITs should follow rigorous compliance standards and therefore carry a certain excellent standard for both the vehicles investment plan and the property experience of the managing team.

There are two key kinds of public REITs: traded and non-traded. Publicly-traded REITs give the benefits of liquidity, since it's 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 cost that most investors pay for the ability to get and sell the asset whenever they wish.

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, irrespective 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 questionable practices around the disclosure of those fees.

In the past couple of years, pioneering new platforms such as Fundrise have emerged. Fundrise intends to offer you the benefits of private market accessibility, but with reduced fees that potentially help investors earn superior returns. Leveraging technology and new national regulations, Fundrise provides investors the first ever diversified commercial property investment portfolio accessible 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 every opportunity as it appears and working hard to remove any pre-existing biases. Take time to figure out which strategy makes the most sense for you, and carefully compute your residual income goals.

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Find out what's happening in Building Residual Income Meetup groups around the world and start 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 is what we want life to seem 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 talk about residual income is the aim of retirement or what we like to call time liberty. .

When you retire, your Social Security income plus pensions, if they are left, and straight from the source 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 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 get 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 prior to taking our money see it here before 59.5, wouldnt it be prudent to start investing in resources of residual income now that maybe dont have an age limitation into our 60s What guarantee do we have that we will make it long.

Additionally, what control do we really have over Social Security and our 401Ks Looking at the sources of residual income, lets have a peek at other high-level places we could diversify. Who knows, perhaps you could start generating residual income now and step into that time independence sooner than your 60s.

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Taking stock of where you're at is so 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 . Residual Income is income which continues to be generated following the initial effort has been expended. Compare this to what most people focus on earning: linear income, which can be one-shot compensation or payment in the kind of a commission, wage, commission or wages.

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