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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 each year. Today, an estimated 70 million Americans invest in REITs.

Due to their special tax status, REITs must follow rigorous compliance standards and therefore carry a certain quality standard for both the vehicles investment plan and the property experience of the managing team.

There are two primary types of public REITs: traded and non-traded. Publicly-traded REITs give the benefits of liquidity, because it is traded openly on a stock exchange. However, this liquidity is very likely to be priced into the worth of the shares, resulting in a liquidity premium, or a cost 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 wider 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 have become popular, due to their potential double 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 these fees.

In the last couple of years, pioneering new platforms such as Fundrise have emerged. Fundrise aims to offer you the benefits of personal market access, but with reduced prices that potentially help investors earn superior returns. Leveraging technology and new national regulations, Fundrise offers investors that the very first ever diversified commercial real estate investment portfolio accessible directly online to anyone in the United States, no matter their net worth.

Regardless 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 appears and working hard to remove any pre-existing biases. Take time to determine which approach makes the best sense for you, and carefully compute your residual income goals.

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

When looking at income in the future, shouldnt we're looking at what's going to happen and determine whether that's what we want life to look like We need to work backward from this point until we reach today, viewing our decisions with money as the pre-cursor of tomorrow The reason we Homepage even talk 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 are left, plus dividends and interest off of your investments and perhaps an income annuity will fulfill your needs and hopefully surpass them, and that means that you can walk away from the 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 receive a little 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 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 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 origins of residual income, lets take a peek at other high tech 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 are at is indeed crucial. Are you currently doing one of those seven Dont be confused, not all businesses or investments are residual, in our opinion.

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

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