Here is How You Grow Your Income
It’s real: you can send your savings and investments to work.
Long forgotten, the entire purpose of making an investment is to grow your money by sharing in the profits.
Today, it’s a rarity – most investors ignore income in favor of speculating.
From the 401(k) to the IRA, everyone is just hoping they go up.
In the book Don’t Save for Retirement, it shows readers what a disaster this personal finance plan has been for the baby boomers.
Instead of hoping things will work out, make 2020 a year where you commit to multiple sources of income.
Here are our top ideas for 2020 cash flow:
(1) FundRise: add multimillion-dollar projects to your portfolio, with a historical return on investment of 8.7% to 12.4%.
It’s a great way to generate safe, reliable income from commercial property, apartments, retail locations, and mortgage notes.
This private real estate investment trust (REIT) is a conservative way to begin enjoying a truly passive income portfolio.
Here are some of the assets you would have acquired in 2019 as an investor in FundRise:
(2) Publicly-Traded REITs
We’ve suggested two in 2019 and they’re both paying out 12% in income!
Annaly Capital (NYSE: NLY) was suggested to you at $8.31. At the time, it was paying about 12%. The stock has risen to as high as $9.75 in the past month, and today it’s at $9.39, which equates to a yield of 10.64%.
We like Annaly Capital (NLY) at under $9.50, so please don’t chase it higher.
You’ll be making money from mortgages and low rates. NLY is essentially a virtual bank that fully benefits from the Federal Reserve by borrowing money for short-term repurchase agreements and reinvesting the proceeds in asset-backed securities.
A secondary option in the residential mortgage business is New Residential Investment Corp. (NYSE: NRZ), which continues to exceed my expectations. This company is relentless in over-delivering value to its shareholders and protecting our downside with a very conservative and diversified strategy.
NRZ is trading for $16.09, up $2.00 since we first recommended it over the summer. Relative to its current share price, you can grab a 12.43% dividend by owning this REIT in 2020.
***Why do REITs pay out such great dividends? Real estate investment trusts are required to distribute at least 90% of their taxable income to their shareholders annually.***
93% Of Investors Generate Annual Returns, Which Barely Beat Inflation.
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3) Dividend-Paying Stocks: I like stocks, but I don’t fully know where this is going. I’m seeing signs of a top and I’m also seeing plenty of indicators for a real melt-up here in U.S. equities.
Here is my plan: I’m getting defensive, focusing on growing my income with some of the safest businesses on the planet.
I’m buying Phillip Morris International (PM), which pays out a 5.5% dividend.
General Mills (GIS) has a 3.7% dividend and one of the safest track records in history when it comes to stock market declines and crashes.
Altria Group (MO) has a 6.75% dividend and is the world’s largest producer of tobacco products.
Altria’s current P/E (price-to-earnings) ratio is at its lowest level in 5 years relative to the market. In my opinion, Altria looks pretty cheap.
Always remember that cash is not wealth, and it’s not even money – it’s just a current medium of exchange that can be turned into something that’s real.
Turn your cash into cash flow in 2020; you won’t regret it.
Happy New Year!
Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!
Protect Yourself Now, By Building A Fully-Hedged Financial Fortress!
No matter how good an investment sounds, and no mater who is selling it, make sure you’re dealing with a registered investment professional. Use the free, simple search at investor.gov
This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. We have been previously compensated by First Majestic Silver sixty thousand dollars and stock options. We currently have no active agreement with them and were not paid for this new coverage. We currently own shares and will not sell any within ninety days of any email coverage. We will never sell any shares during any active email coverage. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought