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

On account of their special tax status, REITs must follow rigorous compliance standards and therefore carry a certain quality standard for 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, since it's traded openly on a stock exchange. But this liquidity is likely to be priced into the value of the stocks, resulting in a liquidity premium, or a price 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 correlated to wider market volatility, meaning that the share value may fluctuate depending on how the stock market 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 possible double-digit 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 few decades, pioneering new programs such as Fundrise have emerged. Fundrise aims to offer you 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 the first ever diversified commercial real estate investment portfolio available right 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 portion of the investment procedure is careful due diligence of every opportunity as it appears and working hard to remove any pre-existing biases. Take your time to figure out which approach makes the most sense for you, and carefully compute 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 long run, shouldnt we be 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 the goal of retirement or what we prefer to call time freedom. .

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

Dividends recommended you read 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 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 seems 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 begin investing in resources of residual income now that perhaps 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 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 freedom 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, not all businesses or investments are remaining, in our opinion.

Residual income has two real definitions. Lets look at those first. Residual Income is income that 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 kind of a commission, wage, commission or wages.

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