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In 1960, Congress passed a law creating Real Estate Investment Trusts (REITs), large portfolios of income-producing real estate 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 particular tax status, REITs must follow rigorous compliance standards and thus carry a certain quality standard for both the vehicles investment strategy and the property experience of the managing team.

There are two key types of people REITs: traded and non-traded. Publicly-traded REITs give the benefits of money, 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 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 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, 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 questionable practices around the disclosure of these fees.

In the past couple of years, pioneering new programs such as Fundrise have emerged. Fundrise intends to offer you the benefits of private market access, but with reduced prices that potentially assist 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.

Irrespective of which investment strategy you decide to pursue to earn residual income, an essential part of the investment process is careful due diligence of every opportunity as it appears and working hard to eliminate any pre-existing biases. Take time to determine which strategy makes the best sense for internet youpersonally, and carefully calculate your residual income objectives.

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When looking at income in the long run, shouldnt we be looking at what is 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 today, viewing our decisions with money as the pre-cursor of tomorrow The reason we even talk about residual income is thats the aim of retirement or what we prefer to call time Continued liberty. .

When you retire, your Social Security income plus pensions, if they're left, and dividends and interest from your investments and perhaps an income annuity will fulfill your needs and hopefully surpass them, and that means that 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 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 appears 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 perhaps dont have an age limitation into our 60s What guarantee do we have that we'll make it that long.

Furthermore, what control do we really have over Social Security and our 401Ks Looking at the origins of residual income, lets have a look at other high tech 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 are at is indeed crucial. Are you currently doing one of those seven Dont be confused, not all businesses or investments are remaining, in our opinion.

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

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