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

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

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There are two primary types of people 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 the shares, resulting in a liquidity premium, or a cost that all investors pay for the ability to buy and sell the advantage 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 the way the stock exchange 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 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 those fees.

In the last couple of decades, pioneering new platforms like Fundrise have emerged. Fundrise aims to offer you the benefits of personal market access, but with reduced fees that potentially assist investors earn better returns. Leveraging technology and new national regulations, Fundrise offers investors the very 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 strategy you decide to pursue to earn residual income, an essential part of the investment procedure is careful due diligence of every opportunity as it arises and working hard to eliminate any pre-existing biases. Take your time to determine which approach makes the best sense for youpersonally, and carefully compute your residual income goals.

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

When looking at income in the long run, shouldnt we be looking at what is going to happen and determine if that is what we want life to look 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 like to call time freedom. .

When you retire, your Social Security income plus pensions, if they're left, plus dividends and interest off of your investments and maybe an income annuity will meet your needs and hopefully surpass them, and that means you can walk away from your day job.

Dividends and interest are a form 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 is taxed in retirement again).

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So, if the goal is to have 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 before 59.5, wouldnt it be prudent to start investing in sources 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 take a look at other high-level places we can diversify. Who knows, perhaps you could begin generating residual income now and step into that time freedom sooner than your 60s.

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Taking stock 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 residual, in our own opinion.

Residual income has two actual definitions. Lets look at those first. Residual Income is income which continues to be generated after the initial effort has been expended. Compare this to what the majority of people focus on earning: linear income, that is one-shot compensation or payment in the kind of a commission, wage, commission or salary.

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

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