The #1 Strategy That Turns $25K Into An Income for Life

U.S. Dividend Stock Investing for Canadian Investors

The #1 Strategy That Turns $25K Into An Income for Life

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The #1 Strategy That Turns $25K Into An Income for Life

There is a quote attributed to Albert Einstein that reads "Compounding Interest is the 8th Wonder of the World". And it's true. Compounding interest is one of the most powerful wealth creating tools you can harness. In 1790, Benjamin Franklin left the cities of Boston and Philadelphia $4,400 each. He stipulated that the cities would get access to these funds after 200 years. So, with 200 years to compound, do you have any guess as to how much each of these cities withdrew after 200 years? $6,500,000 each! That's an amazing sum to receive from, essentially, doing nothing. There's one issue with this strategy, however. It takes time. Most success stories using compounding interest have time periods of decades and longer. And as we both know, nobody has 200 years to sit around and wait for their wealth to compound. That's why I created the $25,000 Income for Life investing strategy. It takes all my decades of investing experience and boils it down into a simple, repeatable, high-yield investing strategy. A strategy that doesn't take 200 years to reap the rewards of compound interest. And a strategy that you can use over and over again until you have multiple high-yield income streams that you can rely on for the rest of your life. Now, here's the problem that the $25,000 Income for Life strategy overcomes. Traditional dividend stocks are low-yield investments. And compounding on low yield investments is just not that powerful. If you try to grow your wealth by compounding at 2% or 3% per year, you might have to wait 200 years like the cities of Philadelphia and Boston to reap any meaningful returns! However, with high-yield stocks like I recommend in The Dividend Hunter, the power of compounding offers a unique opportunity to build wealth and income. An opportunity that takes far less time than typical compounding strategies. And also, I'll show you how to "pour gasoline on the fire" and make your compounding returns even higher. After reading this report, you'll see how to harness Einstein's "8th Wonder of the World" to create multiple highyield income streams, not in 200 years, but in 5 years and less.

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The #1 Strategy That Turns $25K Into An Income for Life

That's because when a stock pays you 6%, 7%, 10%, and even 20% per year, you can rapidly increase your income stream and wealth by participating in a Dividend Reinvestment Plan or DRIP. That's the foundation of the $25,000 Income for Life strategy. As a new member of The Dividend Hunter, you'll now receive all my research and recommendations on high-yield stock investing. You'll also receive my `Buy of the Week' recommendations every Tuesday. So, you're now in the right position to start the $25,000 Income for Life plan. I'll share with you some specific recommendations that might work best for this strategy below. Using these recommendations inside of the $25,000 Income for Life plan is essential. However, you must commit today to actually following the plan. If, after reading this report, you close your browser and forget about what you just read, you'll likely never start the plan. So, after reading this report, I'd like for you to take action and actually follow through with starting the plan. Because once you set up your first $25,000 Income for Life investment, you'll see how easy it is, how fast your wealth can compound, and you'll be ready to use my further research to set up multiple income streams. With my Dividend Hunter system, you'll know have access to invest in the cream of the crop of high-yield stocks. While most people think high-yield = high-risk, that is not the case with the stocks in The Dividend Hunter. Each has been thoroughly vetted with hours of research on their business model, financial statements, and even their management teams. I do this because out of the 900 or so high-yield stocks available in the market only about 100 pass my scrutiny. And out of that 100, I only recommend the top 20 in The Dividend Hunter. In this report I will go over the basic mechanics of how to use the high-yield stocks recommended in The Dividend Hunter to create your own "$25,000 Income for Life" plan. I'll go over my methodology for compounding your dividend income, how to "pour fuel on the fire" to vastly increase the pace at which you can build wealth and share with you which stocks in the portfolio could be your best choices to start the plan today. Before we begin, you must understand the "Rule of 72". It's the foundation for the plan.

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The #1 Strategy That Turns $25K Into An Income for Life

The Rule of 72 The rule of 72 is a shortcut that allows you to estimate the number of years required to double your money at a given annual rate of return. The rule states that you divide the rate of return (in our case dividend yield), expressed as a percentage, into 72. Let's use one of The Dividend Hunter's recommended stocks to illustrate this rule. Take Starwood Property Group (NYSE: STWD), a commercial mortgage REIT that yields right around 9%. If we take the STWD dividend, 9%, and divide it into 72, the answer is 8. 72 / 9 = 8 (Note: in this equation percentages are calculated as whole numbers. So, 8% is actually 8 and not 0.08) That means all things being equal, if your investment in STWD returned you 9% each year for 8 years in a row your investment would roughly double. Here's what the math looks like.

As you can see, starting with $25,000 and earning the 9% annual dividend, in 8 years your initial investment would have paid you $24,814 in dividends. Now this does not include any price appreciation or dividend increases over those 8 years. And it does not include investing any additional capital.

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The #1 Strategy That Turns $25K Into An Income for Life

The Power of the DRIP DRIP stands for "Dividend Reinvestment Plans". A DRIP allows a shareholder to automatically reinvest the dividends they earn back into the stock that paid those dividends. Shareholders can purchase fractional shares of the stocks they own. Meaning that your quarterly dividend will be able to purchase shares even if the amount you receive is less than the share price of the stock that paid it. Setting up a DRIP is the most important part of the $25,000 Income for Life plan. Most brokerages allow you to set up a DRIP, and most time they will not charge any commission fee for purchasing shares. Continuing our example from above, if you purchased $25,000 of STWD stock today for let's say $22 per share (that's 1,136 shares) and reinvested every quarterly dividend for 8 years, what would your investment look like after 8 years?

As you can see, after 8 years of reinvesting the 9% dividend yield you would have increased your annual dividend by 86%! And that's without a single dividend increase by STWD. By reinvesting all of your dividends in this high-yield play, you're giving yourself raises every single quarter. And not only did your income increase, your investment in STWD ballooned by 103.8%! From your original investment of $25,000 you would now be earning an income of over $4,337 a year giving you a yield on investment of 17.36%! That's way higher than the 9% you would be earning if you did not reinvest your dividends.

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