Making Money Alert
Are You Ready For More Monthly Income?
07/05/2007
Did you know that the world of income investing has completely changed?
When most investors think of income, they think bonds, dividend-paying stocks or real estate. These investments have been the classic income plays over the past 50 years, but there is a big problem with these vehicles today. They yield less than a money market account.
Fortunately, I have great news for you. There are wonderful income investing opportunities that yield 7%, 8%, 10%, 12% and even 13% a year. The problem is you just don't know about them.
That is all about to change.
On July 14, I am hosting an income investing workshop in Orange County, Calif., that will explain ten income investing opportunities that are currently yielding 7% or more. Let me give you just a sample of what I will be discussing on July 14.
Here is one of the best income investment recommendations that I have ever made. We introduced this income opportunity to subscribers of my High Monthly Income newsletter in December 2006. At that time, this investment had just fallen 25% in value. That price drop created the best buying opportunity in over three years! The income investment I am talking about is Canadian royalty trusts.
Canadian Royalty Trusts Pay Big Cash Dividends Monthly
You may have heard of these "CanRoy" investments before. They are unit investment trusts that trade on U.S. exchanges just like individual stocks. Owning these in your portfolio puts you in the oil and gas business with two clicks of your mouse.
When you own a CanRoy, you have stakes in oil and gas wells in Canada… and guess what? The monthly income generated from these funds is qualified. That means the dividend you receive monthly in your brokerage account is only taxed at a 15% federal rate. At this time, my favorite CanRoy is paying an annual income stream of 10.2%. In addition to the income, you also have the opportunity for capital appreciation. Just look at the chart of Enerplus Resources Fund (ERF) below.
Here we can clearly see the sharp drop last fall, along with the steady recovery ever since. We have owned this investment since January and have a double-digit percentage, unrealized gain to go along with our 10% annualized income stream.
I've often said that today's income investments are for everyone, and now you know why. I mean, who wouldn't want to take advantage of an opportunity like this? If you want to learn more about the new world of income investing, you must attend my July 14 workshop.
This event is entitled,
Creating Passive Income: How to manage your assets, cash flow and savings to create the income you need to stop working and start living.
- Are you ready to start creating more income in your life?
- Are you sitting on cash that is not earning a decent return?
- Are you falling short of your monthly income needs?
- Do you have cash sitting in real estate and other assets that should be working harder for you?
If you nodded your head "yes" to any of the above questions, then my Creating Passive Income workshop is for you. At this workshop, I will be sharing nine additional income investing opportunities that have yields of greater than 7%. Each opportunity is unique; and each has its benefits and risks, which is why I will be spending plenty of time explaining each one.
In addition to my 10 High Yield opportunities for today, Josh Lewis, my real estate and mortgage expert, will be presenting how the wealthy manage their real estate assets for greater efficiency and effectiveness. The real estate world is changing, and Josh has the solutions to help you continue growing your net worth during this flat real estate market.
Two Experts, 10 Investment Ideas for Income, One Date: July 14 at 9 a.m. at the Orange County Hyatt.
The three-hour workshop includes: handouts, the 10 income ideas fully explained, three strategies for maximizing your real estate equity, and audio recordings -- all for only $49.95. For an additional $10, you can bring your spouse or a friend.
Because I believe so strongly in the content Josh and I are delivering, I am reducing the cost to just $24.95 for anyone registering before July 7. We only have 100 spaces, so act now as we already are starting to get close to standing room only.
Click here to sign up or register by calling 714.242.2880 x286 to speak with David.
I look forward to seeing you there!
Doug Fabian
P.S. Income investing has never been more profitable than it is today if you know where to look for high yields. Higher interest rates are hurting the value of your bonds, REITs and dividend stocks. So don't delay -- contact us today to reserve your seat for Creating Passive Income.
BLOGS AWAY 2
Most of you probably already know that I am no longer broadcasting a daily radio show. But that doesn't mean I no longer have much to say about the markets and all matters financial. In fact, I now record a special message to Alert readers each week on my new, free audio blog.
To listen to this week's audio blog, simply click here
EXPECTING NEW HIGHS
It's the beginning of the second quarter, and the market already has gotten off to a nice start. We've come off of our 50-day moving average (blue line) nicely here, as depicted in the chart of the Total Market VIPERs (VTI) seen below.
I suspect that either the Dow or the S&P 500 or perhaps even both of these broad market indexes will hit new highs as we lurch into the rest of July.
What happens after that, of course, is anyone's guess. I think if bond yields settle down and/or if we can get some stable, i.e., tame inflation data going forward, it could set the stage for more of what we've already seen this year -- a lot of green arrows on those trading screens.
One sector of the market that I really think is going to continue making those trading screens green is semiconductors. The sector was beaten down throughout most of last year. From about August 2006 to April 2007, the space traded basically sideways.
Since April, however, we've seen a big surge in the value of semiconductor stocks. This surge was so significant that it prompted us to take a position in semis in my ETF Trader advisory service.
I am looking for more upside ahead in the semiconductor sector. Indeed, the Semiconductor Holders (SMH) ETF now is trading right at its 52-week high.
ETF NEWS: MORE PROSHARES ON THE WAY
In monitoring the ETF front for my Alert readers, I am frequently reporting news from our friends over at ProShares. The latest from them is their filing of a petition with the SEC for permission to launch 25 new leveraged, inverse and inverse-leveraged ETFs, including the first-ever ProShares international and fixed-income products.
The funds are designed to provide 200%, negative 100% and negative 200% exposure to the daily movement of their benchmark indexes. Like all ProShares ETFs, they charge 0.95% in expenses.
Here's a list of the new ProShares short international offerings, which cover four very high-profile markets:
Short MSCI EAFE, UltraShort MSCI EAFE
Short MSCI Emerging Markets, UltraShort MSCI Emerging Markets
Short MSCI Japan, UltraShort MSCI Japan
Short FTSE/Xinhua China 25, UltraShort FTSE/Xinhua China 25
As ProShares makes its first foray into the short-fixed income arena, here is a list of its proposed bond- and yield-related inverse bond offerings:
Short Lehman Brothers 7-10 Year U.S. Treasury
UltraShort Lehman Brothers 7-10 Year U.S. Treasury
Short Lehman Brothers 20+ Year U.S. Treasury
UltraShort Lehman Brothers 20+ Year U.S. Treasury
Short iBoxx $ Liquid Investment Grade
UltraShort iBoxx $ Liquid Investment Grade
Short iBoxx $ Liquid High Yield
UltraShort iBoxx $ Liquid High Yield
Finally, here are the rest of the new proposed ProShares ETFs:
Ultra NASDAQ Biotechnology
Short NASDAQ Biotechnology
UltraShort NASDAQ Biotechnology
Ultra Dow Jones Select Biotechnology
Short Dow Jones Select Biotechnology
UltraShort Dow Jones Select Biotechnology
Ultra Dow Jones Select Telecommunications
Short Dow Jones Select Telecommunications
UltraShort Dow Jones Select Telecommunications
It's going to be another busy summer this year for new ETFs, and as always we'll make sure you are on top of all the latest.
POSITIVELY BRILLIANT 2
Every once in a while, I read something that really gets me thinking. Rather than just telling you about the most recent revelation, I will just let the words speak for themselves:
"If you had enough money to pay off your mortgage right now, would you? Many people would. In fact, the ‘American Dream' is to own your own home, and to own it outright, with no mortgage. If the American Dream is so wonderful, how can we explain the fact that thousands of financially successful people, who have more than enough money to pay off their mortgage, refuse to do so?
"The answer; Most of what we believe about mortgages and home equity, which we learned from our parents and grandparents, is wrong. They taught us to make a big down payment, get a fixed rate mortgage, and make extra principle payments in order to pay off your loan as early as you can. Mortgages, they said, are a necessary evil at best. The problem with this rationale is it has become outdated. The rules of money have changed."
The above excerpt was written by my friend and colleague Josh Lewis, my real estate and finance expert. You can find this kind of challenging thinking in Josh's new eCourse, which brilliantly reveals how the affluent manage home equity to safely and predictably build wealth.
This fascinating eCourse takes apart the myths and misconceptions that can cost you hundred of thousands of dollars in net worth over the years. In this fine piece of analysis, Josh teaches you why people fear mortgages, and why you shouldn't. He also shows you how a large equity position in your home actually can be disadvantageous to your financial fitness. Finally, he brilliantly demonstrates how you can successfully manage your home equity so that you can increase liquidity, enhance safety, boost your rate of return and maximize your tax deductions.
If any of these topics resonate with you in even the slightest way, then I implore you to check out Josh's FREE eCourse.
All you have to do is sign up, and you'll embark on a really eye-opening journey through the unconventional halls of proper wealth building.
THE COACH IS IN 3
Once again, I am really happy to report that so many of my Alert readers have taken me up on my offer for a free annuity coaching session. The issues you've brought to my attention have really helped me learn about the difficulties annuity investors face in this current market.
Your input also has helped me to see the kind of marketing and sales pitches many of you are subjected to when trying to make annuity decisions. I probably don't have to tell you, but there are a lot of promises made out there that, well, let's just say are laced with too much optimism and not enough realism.
If you are an annuity investor, or if you are planning on buying an annuity anytime soon, you owe it to yourself to take advantage of my offer for a free coaching session. I know I can help you to learn more about this often complex investment tool.
One thing you've got to realize is that understanding annuities requires experience and knowledge. I want all of my Alert subscribers to know their options before making decisions. If I can help you with your annuity questions, please just send me an e-mail and let me know.
If you would like to get your FREE annuity coaching session with Doug Fabian, simply send an e-mail.
WISDOM FROM A LITERARY GENIUS
"We can destroy what we have written but we cannot unwrite it."
—Anthony Burgess, from the introduction to his classic,
A Clockwork Orange
Life is rife with mistakes, missteps and blunders. Although we can attempt to bury the past, what's done is done. If you've made mistakes with your money, the only way to destroy those mistakes is by making correct decisions. No, you cannot unwrite the past, but you can make things right in the future by the power of will and the compass of reason.
Wisdom about money, investing and life can be found anywhere. If you have a good quote you'd like me to share with your fellow Alert readers, send it to me, along with any comments, questions and suggestions you have about my radio show, newsletters, seminars, or anything else.