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

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

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. But this liquidity is very likely to be priced into the value of the shares, resulting in a liquidity premium, or a price that most investors pay for the ability to buy and sell the advantage whenever they wish.

Furthermore, publicly-traded REITs tend to be connected to wider 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 all the underlying properties owned by the REIT. .

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On the other hand, public non-traded REITs are becoming 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 those fees.

In the last couple of decades, pioneering new programs like Fundrise have emerged. Fundrise aims to offer the benefits of private market access, but with reduced prices that potentially assist investors earn better returns. Leveraging technology and new national regulations, Fundrise offers investors the first ever diversified commercial real estate investment portfolio accessible right online to anyone in the United States, no matter their net worth.

Regardless of which investment plan 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 strategy makes the best sense for youpersonally, and carefully calculate your residual income goals.

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When looking at income in the future, 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 today, viewing our decisions with money as the pre-cursor of tomorrow The reason we even speak about residual income is thats the goal 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 maybe an income annuity will meet your needs and hopefully exceed them, so that you can walk away from your day job.

Dividends and interest are a sort of residual income. Social Security certainly is, the government takes money from us every paycheck and we get a little piece back when we retire (even though it is taxed in retirement again).

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Consequently, if the objective 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 maybe dont have an age limit 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 sources of residual income, lets take a look at other high tech places we could diversify. Who knows, maybe you could start 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 so crucial. Are you currently doing one of these seven Dont be confused, not all businesses or investments are remaining, in our opinion.

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

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