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In 1960, Congress passed a law creating Real Estate Investment Trusts (REITs), large portfolios of income-producing property investments. A REIT is required by law to distribute 90% of its earnings to investors every year. Now, an estimated 70 million Americans invest in REITs.

Due to their special tax status, REITs should follow rigorous compliance standards and thus carry a certain excellent standard for the vehicles investment plan and the real estate experience of the managing team.

There are two key kinds 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 these stocks, resulting in a liquidity premium, or a price that most investors pay for the capability to get and sell the asset whenever they wish.

Furthermore, publicly-traded REITs tend to be connected to broader market volatility, meaning that the share value may fluctuate depending on the way the stock market 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 more popular, due to their possible double-digit dividends. But, 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 last few decades, pioneering new platforms like Fundrise have emerged. Fundrise intends to offer the benefits of private market access, but with reduced prices that potentially help investors earn better returns. Leveraging technology and new federal regulations, Fundrise provides 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.

Irrespective of which investment plan 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 eliminate any pre-existing biases. Take time to figure out which approach makes the most sense for you, and carefully calculate your residual income objectives.

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Find out what's happening in Building Residual Income Meetup groups around the globe and get started meeting up with the ones near you.

When looking at income in the future, shouldnt we be looking at what's going to happen and determine if that's what we want life to seem like We need to work backward from this point Our site until we reach now, viewing our decisions with money as the pre-cursor of tomorrow The reason we even talk about residual income is the goal of retirement or what we like to call time freedom. .

When you retire, your Social Security income plus pensions, if they are left, and dividends and interest from your investments and maybe an income annuity will fulfill your needs and hopefully exceed them, so you can walk away from your day job.

Dividends and interest are a sort of residual income. Social Security certainly is, that the government takes money from us each paycheck and we get 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 get residual income when we retire, which appears based on Social Security rules to only be possible in our 60s, and the government has see it here mandated penalties before 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 limit 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 inventory of where you're 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 first. Residual Income is income which continues to be generated following the initial effort has been expended. Compare this to what the majority of men and women focus 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 called PROFIT! So, we're going to use the first definition for the sake of the document. .