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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% 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 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 give the benefits of liquidity, because it is traded openly on a stock exchange. But this liquidity is likely to be priced into the worth of the stocks, resulting in a liquidity premium, or a price that all investors pay for the ability 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 market 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 have become popular, because of their possible double-digit dividends. However, public non-traded REITs have recently come under heavy scrutiny due to the large upfront fees often charged to investorsand questionable practices around the disclosure of these fees.

In the past couple of decades, pioneering new programs like Fundrise have emerged. Fundrise intends to offer the benefits of private market accessibility, but with lower prices that potentially assist investors earn better returns. Leveraging technology and new federal regulations, Fundrise provides investors the first ever diversified commercial property investment portfolio available right 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 portion of the investment procedure 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 approach makes the best sense for you, and carefully compute your residual income objectives.

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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 that point until we reach now, viewing our decisions with money as the pre-cursor of tomorrow The reason we even speak about residual income is the goal of retirement or what we prefer to call time liberty. .

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 that you can walk away from the day job.

Dividends and interest are a form of residual income. Social Security certainly is, the government takes money from us each paycheck and we receive 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 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 before 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.

Furthermore, 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 tech places we could diversify. Who knows, maybe 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 are 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 at these . Residual Income is income which continues to be Get the facts generated following the initial effort has been expended. Compare this to what most people focus on earning: linear income, that can be one-shot compensation or payment in the kind of a fee, wage, commission or wages.

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