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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 every year. Now, an estimated 70 million Americans invest in REITs.

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

There are two key kinds of people REITs: traded and non-traded. Publicly-traded REITs offer the benefits of liquidity, since it's traded openly on a stock exchange. But this liquidity is likely to be priced into the value of the shares, resulting in a liquidity premium, or a cost that most investors pay for the ability to buy and sell the asset whenever they desire.

What's more, publicly-traded REITs tend to be connected to wider 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 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. But, 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 aims to offer the benefits of private market access, but with reduced fees that potentially help investors earn better returns. Leveraging technology and new national regulations, Fundrise offers investors that the very first ever diversified commercial real estate investment portfolio available right 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 procedure 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 strategy 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 groups around the globe and start meeting up with all the ones near you.

When looking at income in the future, shouldnt we're looking at what is going to happen and determine whether that is what we want life to seem like We need to work backward from that point until we achieve today, viewing our decisions with money as the pre-cursor of tomorrow The reason we even speak about residual income is the aim of retirement or what we prefer to call time freedom. .

When you retire, your Social Security income and 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, 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 get a little piece back when we retire (even though it is taxed in retirement again).

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So, if the goal is to get residual income when we retire, that appears 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 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'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 have a peek at other high-level places we could diversify. Who knows, maybe you could begin 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 those seven Dont be confused, not all businesses or investments are remaining, in our opinion.

Earning income has two real definitions. Lets look at those . 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 wikipedia reference can be one-shot compensation or payment in the form of a fee, wage, commission or wages.

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. .