It used to be a millionaire would have no trouble retiring. Just
a few years ago, a 10-year
paid 5%. This meant you could put a million bucks into
and earn $50,000 a year, risk-free.
Today, that same million dollars earns much less -- just $15,000
with the same investment. And it's a similar story with other
traditional places where millionaire's put their money for
The average certificate of deposit yields 1.0%, savings
earn next to nothing and even the S&P 500 pays a paltry 2%
Fortunately, there's a different way to invest that can earn you
significantly more income. In fact, I'm using this strategy to earn
the same income stream as a millionaire for just pennies on the
In the past several weeks, I've talked extensively about my
. Simply put, my goal is to build a portfolio of
payers so that I can collect one dividend for every day of the
In the past year, I've collected more than $16,000 in
dividends... and that's with a portfolio worth roughly
With 10-year Treasuries yielding 1.5%, I'm earning more from my
portfolio than I would if I had $1,000,000 invested in
Of course, there's a difference between investing in Treasuries
and using my
. Treasuries are 100% risk-free investments (although
certainly can eat into your returns). My portfolio is loaded with
master limited partnerships (MLPs), closed-end funds, blue-chips,
and a number of other
And yes, it is possible for these investments to fall in
But what might surprise you is how well a basket of these
investments can hold up, even in a tough
For example, during the sell-off last August, the S&P 500
lost 5.7% in a single month. That's a major move for one of the
world's most recognized indexes.
But despite all the turmoil, my portfolio only lost just 1.0% --
one-sixth the amount of the broader market. To top it off, I also
collected more than $1,300 in dividends during the month, which
helped cushion my returns even more.
I'm not telling you this to brag about my success. I'm merely
showing you that in this low interest rate environment, investors
looking for steady income don't have to settle for the
below-average returns we're seeing from traditional income
All it takes is the patience to build a portfolio around
consistent, dividend-paying stocks. Once you've established your
portfolio, then you'll be able to collect hundreds, even thousands
of dollars in income each month... income you'd never get from
And the best part is you don't need $250,000 to get started either.
My results are completely scalable. No matter how much you have to
invest, you can use this strategy to your benefit.
Right now, the average dividend yield for my portfolio is 7.2%.
Depending on the amount you're willing to invest, the chart on the
right shows you how much money you could earn using my
Risks to Consider:
Don't get me wrong, this strategy isn't without risk. If the
market suffers another sharp sell-off like the one we experienced
last year, then no portfolio is completely safe.
Action to Take -->
But the fact of the matter is it's simply not as easy to find a
dependable income stream as it was 10 years ago. The Federal
Reserve has slashed interest rates to stimulate the
, but it's been at the expense of the average U.S. saver.
It could be years before traditional income investments return
to their former glory. But as I just showed you, that doesn'tmean
all is lost for income investors.
The key is finding stocks that will pay you consistent
dividends... and having the patience to let them grow your wealth
over the long-term.
To be honest, there's plenty more to share about my
strategy... and I don't have the space to include it all here.
Instead, I've put together
a special presentation
that outlines how I'm earning a $1,357 per month income stream (and
the brokerage statement to prove it). To view this free
presentation -- including a few high-yield picks to start your own
you can visit this link
-- Amy Calistri
Amy Calistri does not personally hold positions in any
securities mentioned in this article. StreetAuthority LLC does not
hold positions in any securities mentioned in this article.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.