By Andrew Packer (2013)
This book is a very hands-on guide that really tells you specifically which are the things to buy in the context of America.
There are 3 financial sources in America to secure “golden years” – Social Security, retirement account and value of home.
Today’s retirees face significant headwinds especially in inflation. Albert Einstein calls “compound interest is the most powerful force in the universe. Inflation is also a compounding force. A dollar invested today, with interest re-invested, performs substantially better than if you don’t re-invest.
In a 1994 book “Stocks for long run”, Siegel’s research showed that over a long enough time period, returns on stocks with the dividends reinvested beat every other asset class hands-down.
These are some of the guides that the author provides. However, it may not be latest and things may change. Hence, take it with a pinch of salt.
- 3 Dividend giants safe for income : – Johnson & Johnson, Wal-mart and Cisco.
- 3 REIT : – Realty Income, Long term care type of REIT (skilled nursing properties), Annaly Mortgage (NLY) etc.
- 3 Master Limited Partnerships (MLPs) : – Kinder Morgan, Buckeye Partners, Boardwalk Pipeline Partners.
- 3 Trust Preferred Payout : = Nuveen Quality Preferred Income Fund (JTP), Goldman Sachs Preferred Series D, ING Perpetual Hybrid Trust.
- 3 Covered Call Opportunity : – ING Global Equity Dividend and Premium Opportunity Portfolio Fund (fund writes covered calls), Madison/Claymore Covered Call and equity Strategy fund, Blackrock Enhanced Dividend Achiever Trust.
- 3 Business Development Companies (BDC) : = Hercules Technologies Growth Capital, Ares Capital, Apollo Investment Corp.
- Currency Plays : – Aberdeen Asia Pacific Income Fund (FAX) – bond fund which is low risk and income oriented, some currencies trade in opposite direction of US$ :
1. Currency Shares Australian Dollar Trust (FXA)
2. Currency Shares Swedish Krona Trust (FXS)
3. Currency Shares Mexican Peso Trust (FXM)