We’re excited to announce that the Supplemental Income plan is back! After a temporary pause, the plan is once again open to everyone and accepting new investments.
What does that mean? Well, the main takeaway is that if you want to invest through the Supplemental Income plan, you’re now able to. If you’re curious about the details, we’ve answered a few important questions about the Supplemental Income plan below.
What is the Supplemental Income plan?
Supplemental Income is one of four Fundrise investment plans you can select when you open an account:
The plan you choose determines how your investment is allocated across a wide range of eREITs and eFunds. And, as the plans’ names suggest, that allocation affects the way your investment earns returns: some combination of both regularly paid dividends and long-term appreciation.
For example, the Supplemental Income plan focuses on generating regular passive payments, in the form of quarterly dividends, while the Long-Term Growth plan is designed to provide superior overall returns by the conclusion of the investment, through greater appreciation potential.
If you prefer either dividends or appreciation, you should choose the plan designed to maximize that potential return type. Or if you’d rather aim to take advantage of dividends and appreciation in equal measure, you can find that strategy through Balanced Investing.
Why was the Supplemental Income plan paused? Was there a problem?
No, there were no problems. It was just a matter of timing. Legal regulations require us to limit the total dollars our investors can put in a fund in any single year. Due to unexpected high demand in early 2018, we had to pause the Supplemental Income plan until we could increase the legal capacity of its underlying funds. Now that we have, it’s back open for new investments.
During the period that it was paused, the plan and its underlying funds continued to operate for existing investors the same as always, adding and developing new income-oriented real estate private equity.
Now that the plan is open again, do I have to do anything special to invest?
Not at all. You can invest in the Supplemental Income plan just like you invest in any Fundrise product.
Is Supplemental Income the right plan for me?
The Supplemental Income plan is designed for investors who want their Fundrise returns to focus on quarterly dividends instead of long-term appreciation. That means that their investment’s overall returns might be lower, but they’ll receive a greater percentage of those returns in the form of distributed cash. That structure is often preferable for people who want to access a greater portion of their return earlier, for any number of reasons. The size of an investor’s dividends depends on many factors, including the total amount they’ve invested.
Remember, though, that all Fundrise investments are designed to be 5-7 year commitments. While the Supplemental Income plan is set up to deliver more of its potential returns as dividends, investors should also expect to realize a piece of their overall return through appreciation, at the investment’s end.
Ultimately, if you have any questions on whether a particular plan is appropriate for you, you should confer with your personal tax and investment advisors that are familiar with your personal circumstances.
Where can I learn more or start investing through the Supplemental Income plan?
- You can learn more about every Fundrise plan here and about Supplemental Income specifically here.
- You can also compare the allocation and return profile of each of our advanced investment plans here.
- If you’re not sure which Fundrise plan is right for you, you can take this quick quiz to help you decide which plan might best suit your investment goals.