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

Due to 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 primary kinds of public REITs: traded and non-traded. Publicly-traded REITs give 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 shares, resulting in a liquidity premium, or a cost that all investors pay for the capability to buy and sell the advantage whenever they wish.

Furthermore, publicly-traded REITs tend to be connected 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 have become popular, because of 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 questionable practices around the disclosure of those fees.

In the past few decades, pioneering new platforms like Fundrise have emerged. Fundrise aims to offer you the benefits of personal market accessibility, but with lower prices that potentially assist investors earn superior returns. Leveraging technology and new national regulations, Fundrise offers investors the very first ever diversified commercial real estate investment portfolio accessible directly 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 every opportunity as it arises and working hard to remove any pre-existing biases. Take your time to figure out which strategy makes the most sense for you, and carefully calculate your residual income objectives.

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When looking at income in the future, shouldnt we be looking at what's going to happen and determine if that is what we want life to seem like We need to work backward from that point until we achieve now, 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 liberty. .

When you retire, your Social Security income plus pensions, if they are left, plus dividends and interest off of your investments and maybe an income annuity will click this link fulfill your needs and hopefully surpass them, so 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 every 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 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 sources of residual income now that perhaps dont have an age limit into our 60s What guarantee do we have that we'll make it that long.

Additionally, 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 can diversify. Who knows, maybe 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 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 men and women focus on earning: linear income, that is one-shot compensation or payment in the kind of a fee, wage, commission or wages.

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