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

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

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

Furthermore, publicly-traded REITs tend to be correlated to broader market volatility, meaning that the share value may fluctuate depending on how the stock exchange is doing, regardless 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 are becoming 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 dubious practices around the disclosure of these fees.

In the last few years, pioneering new programs such as Fundrise have emerged. Fundrise aims to offer you the benefits of private market accessibility, but with reduced fees that potentially help investors earn superior returns. Leveraging technology and new federal regulations, Fundrise offers investors that the first ever diversified commercial real estate investment portfolio available directly online to anyone in the United States, no matter their net worth.

Regardless of which investment strategy you decide to pursue to earn residual income, an essential portion of the investment process is careful due diligence of each opportunity as it appears and working hard to eliminate any pre-existing biases. Take time to determine which approach makes the most sense for youpersonally, and carefully compute your residual income goals.

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When looking at income in the long run, shouldnt we're looking at what is 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 today, viewing our decisions with money as the pre-cursor of tomorrow The reason we even speak about residual income is thats 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, plus dividends and interest off of your investments and perhaps an income annuity will fulfill your needs and hopefully exceed them, so you can walk away from your 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 small 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, 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 maybe dont have an age limitation into our 60s What guarantee do we have that we'll make it long.

Additionally, what control do we really have over Social Security and our 401Ks Looking at the sources of residual income, lets have a peek at other high-level places we could 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 inventory of where you're at is indeed crucial. Are you currently doing one of these seven Dont be confused, not all businesses or investments are remaining, in our opinion.

Earning income has two real definitions. Lets look Visit Website at those . Residual Income is income that continues to be generated following the initial effort has been expended. Compare this to what most men and women concentrate on earning: linear income, that is one-shot compensation or payment in the form of a commission, wage, commission or wages.

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