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Boost Your Stock Market Gains 90% with One Quick Phone CallBy
Wednesday, April 17, 2013
All you need to do to get started generating long-term, "make your retirement" wealth is place a single phone call.
This might be the most important call you'll ever make. As I'll show you today, it could be the difference between earning $70,000... or more than $132,000. Last August, I even showed you what number to call. Have you made the call yet?
If you haven't... and you have five minutes to spare, read on...
Over the past several years, my colleagues and I have shown DailyWealth readers the power of compounding... especially with high-quality stocks.
Compounding is a simple strategy where you put your money in an investment that pays dividend or interest income... and you use that income to buy more of the investment. Now, your dividend or interest earns income, too, building a bigger dividend or higher interest payments.
In short, you get to buy new shares of stock without having to put another penny into your investment. It's as close to "free money" as the stock market will ever get you.
As I explained in August, you can use this strategy to turn an initial $3,000 stake into 10 times as much if you give it enough time. This really works. I hear from readers all the time how well it's worked for them.
If you're not convinced, let me show you how it works with a simple example... then I'll show you what number you need to call to get started...
Let's say three friends – Bill, Fred, and Sam – each invest $10,000 into Company XYZ. Let's say the stock pays a 4% annual dividend. And let's assume in this instance that the share price grows 5% annually. (The S&P 500 has grown 5.3% every year since 1928.)
We'll start with Bill. He never reinvests his dividends. Instead, he just collects his payments like clockwork and piles up the income.
Fred does reinvest. Every time he piles up $2,500 in income, he buys another chunk of shares.
Sam also reinvests... But what Sam does is call his broker and sign up for a free automatic dividend reinvestment plan (DRIP). Every time Company XYZ pays a dividend, his broker uses that income to buy more shares of XYZ.
Here's how they do...
As you can see from the table above, Sam's returns take the cake. After 30 years, Sam's portfolio is showing a 17% improvement over Fred's portfolio... and a massive 90% improvement over Bill's portfolio. The only thing Sam had to do to increase his gains by 90% was make a single phone call... and give the strategy time to work.
To quickly put this powerful strategy to work for you, all you have to do is call your broker's customer service line and let them know you want to enroll your high-quality dividend-paying stocks in a DRIP. You're looking to place elite World Dominating Divided Grower stocks like Coca-Cola and McDonald's into these "set it and forget" plans... and keep them in there for decades. Below are the phone numbers for a few brokers. (None of them charge commissions.)
E-Trade – 800-387-2331
TradeKing – 877-495-5464 Fidelity – 800-343-3548 Ameritrade – 800-454-9272 If your broker isn't on the list, simply check online for the contact information. Finding the number and making the call will take you less than 10 minutes. And that's all you have to do.
This phone call will get you started with the greatest wealth-building strategy in the world. Make the call today.
Good investing,
Dan Ferris
Further Reading:
Dan's favorite vehicles to compound your money are World Dominating Dividend Growers. These industry-leading stocks will grow your wealth faster – and safer – than any other stocks. Learn how to spot them here, here, and here.
Doc Eifrig likes compounding your money in a tax-sheltered investment account. Read more about the power of compounding – and see how it could add another $200,000 to your retirement account – here: Increase Your Nest Egg by 25% with One Safe, Simple Strategy.
Market NotesGOLD STOCKS ARE IN "BUST" MODE One of the market's great "boom and bust" assets is approaching its financial-crisis lows…
As longtime readers know, we keep close tabs on gold stocks. They can be a good friend to the trader. They tend to go through huge booms and busts. Get in the booms early, avoid (even short) the busts, and you can make huge returns. And right now, gold stocks are in "bust" mode…
We can see this in the recent share-price action of gold stock "bellwether" Barrick Gold (NYSE: ABX). Barrick is the world's largest gold producer. It has the money to hire the best people, manage the biggest projects, and buy the most equipment. As a result, it often sets the tone for the rest of the gold-mining industry.
As you can see in the chart below, after bottoming in October 2008, Barrick shares ripped 200%-plus higher in just over two years. But the stock has spent the past two years "busting." And thanks to gold's recent selloff, shares have plummeted to their lowest level since the financial crisis… wiping out nearly all the gains from its previous boom.
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