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How to Retire Rich – Master the Money Game

Retiring rich may be more possible than you think.

Especially if you’re young, you don’t even need to make a lot of money to end up wealthy, says Tony Robbins, a self-made millionaire and the best-selling author of “Money: Master the Game.” If you consistently set aside a portion of your earnings, whether you make $40,000 or $100,000, and let it grow over time, you could end up with a seven-figure portfolio.

If you’re just starting out in the workforce, “you have the greatest gift on earth: time and compounding,” he says. All millennials need to do is to use those advantages, he says, adding: “When they asked Warren Buffett, ‘What made you a wealthy man? He said, ‘Good genetics, time and compounding.'”

How exactly can these ingredients — time and compounding — help you build your net worth? For starters, it’s important to understand how compounding works.

What is compound interest?

Compound interest makes a sum of money grow at a faster rate than simple interest, because in addition to earning returns on the money you invest, you also earn returns on those returns at the end of every compounding period, which could be daily, monthly, quarterly or annually.

That’s why compound interest causes your wealth grow faster. It’s also why you don’t have to put away as much money to reach your goals.e dialog

Compound interest can also work against you when it comes to loans: It means that every year or month, whatever the frequency specific to your loan, the amount you have to repay gets bigger. So the longer it takes to pay off your loan, the more you’ll owe in interest.

Why does time matter?

The sooner you start to invest your money, the more you’ll benefit from compound interest. Starting to save early means you don’t have to put away as much over time — and even a few years can make a big difference.

To show just how advantageous it is to start saving and investing early on, personal finance site NerdWallet created a chart showing the percentage of each twice-a-month paycheck you’d need to set aside to have $2 million saved by the time you’re 67.

It assumes two different starting points, age 22 and age 30, and that you’re start with zero dollars invested. It also assumes a 6% average annual investment return and various annual salaries.

The 22-year-old has just an eight-year head start on the 30-year-old, but that makes a significant difference in how much is needed to save per paycheck. Scroll over the bars to see the exact numbers.

How to use compound interest to your advantage

Almost anyone save and invest of portion of their paycheck, says Robbins, no matter the size of their salary: “Oftentimes people tell me, ‘I don’t have any money. … I don’t know where to start. I’ve got to wait until I have money before I begin [investing].’ That is the biggest mistake you can make.”

Even if you can only save 1% to 5% of your income in a retirement account, start there. “What you want is consistency,” Robbins says. Then, work towards setting aside 10% to 20%. That may sound daunting, but it’ll be easier to do if you make it automatic, meaning that you have your contributions automatically taken out of your paycheck and sent straight to your retirement account.

As for where you should invest, the simplest starting point is to contribute to your employer’s 401(k) plan, a tax-advantaged retirement savings account that many companies offer, or other retirement savings accounts, such as a Roth IRA or traditional IRA.

“What you want is consistency.” -Tony Robbins, best-selling author of ‘Money: Master the Game’

Many experts, including Warren Buffett, recommend investing in low-cost index funds, like ones that track the S&P 500, which holds stocks for 500 of the largest companies in the U.S., including Apple, Exxon and Johnson & Johnson.

You can also look into robo-advisors, such as Betterment, Wealthsimple and Wealthfront. These are automated investing services that use an algorithm to determine the kind of portfolio that’s right for your age, risk tolerance and time horizon.

No matter how you choose to invest, the most important step is to open at least one account and start contributing to it consistently to take full advantage of compound interest. The earlier you start, the better off you’ll be.

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Real Estate Monthly Passive Income

For investors seeking consistent monthly income along with using passive vehicles, look at stocks with monthly dividends. Imagine, having multiple monthly income streams such as 10 or more stocks paying you each month. Then, add covered call investments from Get Rich Investments to live the life your desire.

Realty Income Corp styles itself as “the Monthly Dividend Company,” and frankly, this conservative retail real estate investment trust (REIT) deserves the title of king of the monthly dividend stocks. Realty Income has paid its investors like clockwork for 559 consecutive months and even raised its dividend for 77 consecutive quarters.

It has a yield of 3.9%, a stock is always going to be considered more risky than a bond, but Realty Income is about as close to a bond as you can realistically get in the stock market. Its cash flows are backed by long-term leases to high-quality tenants. Its properties are generally high-traffic retail sites that are mostly recession proof and “Amazon.com proof.”

We see total revenue growth of approximately 7% in 2019, moderating to 5% to 7% in 2020 driven by acquisitions, rising rents and stable occupancy. Occupancy at the end of Q4 2018 was 98.6%, near the highest occupancy rate within the past 10 years and up from 98.4% in the prior year. We estimate occupancy to remain near its historical average of 98% due to the desirable locations and non-discretionary retailer demand.

We raise our target price by $8 to $73, equal to 22.4x our 2019 FFO per share estimate of $3.26, and above the peer average of 15.5x. We start 2020’s FFO estimate at $3.40. O reported Q4 FFO of $0.73 vs. $0.61, $0.01 below consensus. Year-end occupancy increased to 98.6% from 98.4% in the prior year while rents under lease were up 0.8% for Q4 and up 0.9% for the year, which we find acceptable given O’s tenants are under triple-net leases. We continue to believe O will execute well and stick to its core competencies. We like that O has taken advantage of its current stock price and a favorable market, raising $539 million in Q4 from sale of common stock, a prudent move to help fund future acquisitions. We think long-term investors will continue to benefit from O’s predictable cash flow, but we reiterate our Hold opinion on valuation. O usually trades at a 20% premium-to-net asset value (NAV), but at its current 40% premium we would wait for a more attractive opportunity to buy.

 

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A 600% Trade in 2 Days for Fast Cash!

On Dec 5,subscribers sold PUTs on US Steel (X) for $1.24 per option.  Our stock chart indicator identified an Ascending Continuation Triangle in the stock.  This is an indication the stock had positive momentum and was ready to break out.  Our strategy is to sell PUTs on the breakout and buy to close the PUTs to lock in profits.  This allows subscribers to close out of trades early (locking in profits) to compound your dollars into more trades.  The more compound trades increase the total monthly income.

So how did the trade work out for investors?

On Dec 7 (yes only two days later), subscribers bought to close the PUTs on X for $0.30 per option.  X was trading at $29.84 at the trade entry but jumped to $33.00 per share in the following days!  We closed the position to lock in fast cash following the stock breakout trade.

This resulted in a gain of $94 per option sold in only 2 days.  If you had sold 10 PUTs, you would have made $940 in 2 days on one trade.  This is a 3.3% cash return in 2 days or 600% annualized trade.

Join the newsletter for only $29.99 is the best deal for making monthly income.  Let’s see, spend less than $30 to make $940 on one trade and a few $thousand each month in extra income!  Join the Monthly Income Newsletter to create your income monster.

 

Here is the details of the US Steel (X) Trade shared with subscribers on Dec 5:

Stock: United States Steel Corporation (X) produces and sells flat-rolled and tubular steel products primarily in North America and Europe. It operates through three segments: Flat-Rolled Products (Flat-Rolled), U. S. Steel Europe (USSE), and Tubular Products (Tubular). The Flat-Rolled segment offers slabs, rounds, strip mill plates, sheets, and tin mill products.

Chart: We have detected an “Ascending Continuation Triangle” chart pattern formed on United States Steel Corp (X on NYSE). This bullish signal indicates that the price may rise from the close of 29.84 to the range of 33.20 – 34.00. The pattern formed over 29 days which is roughly the period of time in which the target price range may be achieved.

United States Steel Corp has a current support price of 27.10 and a resistance level of 30.21.

Strategy: We have an opportunity to sell options for income with X as the stock should trade higher in the coming weeks. I recommend to place your trade and exit when you have locked in profits due to the stock price moving higher. Our goal here is to make income short term so we can exit and compound capital into another trade.

For medium risk option trade, look to sell a December 2017 30 PUT for about $1.00. This creates a return of 3.4% to expiration in 10 days or greater than 124% annualized.

For a conservative trade, you can setup a covered call trade. You can purchase 100 shares of X and sell a December 30 CALL option for about $0.90 for an assigned return of 3.4% in 10 days for a 124% annualized return.

We continue to identify winning option trades to generate income and to exit early as the stock bullish patterns moves prices higher.

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Income Trade for 70% Return

As income investors, we seek to create consistent monthly income by selling options to collect monthly premiums. This has been successful for our investors for years. Option selling offers another method to diversify investing strategies beyond traditional dividend investing. We have combined technical stock events with our strategy to identify high returns option selling opportunities. This income trade will generate a return of more than 70% annualized.

Stock: Teck Resources Ltd is engaged in the business of exploring for, acquiring, developing and producing natural resources. The Company’s activities are organized into business units that are focused on steelmaking coal, copper, zinc and energy. It operates in five segments: steelmaking coal, copper, zinc, energy and corporate. The corporate segment includes all of its activities in commodities other than copper, coal, zinc and energy.

The RSI is above its neutrality area at 50. The MACD is negative and above its signal line. The MACD must break above its zero level to trigger further gains. Moreover, the stock is above its 20 and 50 day MA (respectively at 21.51 and 21.89).

Chart: We have detected a “Double Bottom” chart pattern formed on Teck Resources Ltd (TECK). This bullish signal indicates that the price may rise from the close of 22.42 to the range of 23.90 – 24.30. The pattern formed over 18 days which is roughly the period of time in which the target price range may be achieved. Teck Resources Ltd has a current support price of 21.22 and a resistance level of 22.93.

 

 

 

 

 

 

 

Strategy: We have an opportunity to sell options for income with TECK as the stock should trade higher in the coming weeks. I recommend to place your trade and exit when you have locked in profits due to the stock price moving higher. Our goal here is to make income short term so we can exit and compound capital into another trade.

We are selling PUTs to take advantage of the stock price move to the upside. For conservative traders, you can create a covered call trade using the call for downside protection.  Before you can become a millionaire, you have to start thinking like one.  It isn’t just a pathway to wealth.  It’s a way of life… a belief system… a mindset – and it will show you how to build a full, rewarding life.

Join our Monthly Income Newsletter to get this trade and many other income trades.

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Join the Monthly Income Newsletter voted the best value for option income trading.

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