I hope this email at least finds you well, if not in good spirits. I know it’s hard to keep those up when you’re bombarded by images of civilians, especially children, suffering at the hands of warring parties.
But if we let that sadness we feel permeate too far, it can ferment into anger (something we’re also seeing on a daily basis). And that’s not going to solve anything or help anyone (as we’re also seeing over and over again around the world).
So while there’s not much we can physically do as individuals, we can keep a stiff upper lip and try to keep a warm disposition to counter the hate and anger spreading so quickly around the globe.
That’s why I’ve chosen to take a different route this week again and not focus on the geopolitical strife that just seems to keep getting worse and worse. My colleagues are already doing an incredible job at that.
Instead, I’m going to continue with my series about my journey from being a Wall Street banker to becoming an advocate for Main Street investors.
And today, I’m going to answer one of the most common questions I’ve gotten throughout my many years in finance, both on Wall Street and helping retail investors achieve their retirement dreams.
You see, over the past decade-plus, I've been privileged to walk alongside countless retail investors, helping them navigate the intricate maze of financial investments.
And one of the very first things nearly every person has asked me is our topic du jour…
What’s the best kind of investment for a beginner to make to help catch up on retirement planning they put off earlier in life?
And so, with that question in mind, our journey today centers around an investment paradigm that promises not just a quick payoff, but sustainable growth as well: cash-generating investments.
The Allure of Cash-Generating Investments
Decades ago, as a budding investor, I was introduced to the realm of investments that produce consistent cash flows.
Initially, I was skeptical…
Nobody brags about their income-paying investments at dinner parties. They brag about the thousands of percent they made buying microcap cannabis stocks or technology IPOs.
Simply put, these are not what most people would call “flashy,” “exciting,” or “sexy” investments at all.
And I, like many newly forged financial analysts, thought that sexy investments were the best investments.
Can you blame us, though? We grew up watching people make money hand over fist investing in bubbly dot-com stocks, trading exotic derivatives, and buying nanocap uranium miners.
But my apprehension soon transformed into astonishment as I witnessed my own investments snowball over time. Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: “How to Make Your Fortune in Stocks”
It contains full details on why dividends are an amazing tool for growing your wealth.
Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: “How to Make Your Fortune in Stocks”
This wasn't just the result of an economic boom. You already know I made my debut into the world of high finance in the midst of the worst economic downturn we’ve seen since the Great Depression.
This was the pure, undeniable power of consistent cash returns.
And I didn’t really have to put a whole lot of thought into it. I found the investments that made the most sense to me, started positions in them, set up regular contributions, and reinvested my income.
The results were phenomenal. Within a year or two, my account had ballooned to be worth far more than the money I’d invested in it. And I was getting paid to watch my balance grow.
Similarly, I've seen many of my clients experience the same transformation….
Patricia, a teacher for over 30 years, initially approached me with a modest savings account. She’d been saving for a few years but wasn’t sure where to invest her money and felt like she was so far behind that she might never get the chance to retire and enjoy her golden years.
But by channeling her funds into income-generating investments, her portfolio has since quadrupled, paving the way for not just a healthy retirement, but an early retirement at that!
And she's just one of many.
Compounding: The Eighth Wonder of the World
Albert Einstein once supposedly quipped, "Compound interest is the eighth wonder of the world. He who understands it earns it; he who doesn't pays it." And he couldn’t have been more correct…
The essence of compounding is straightforward: It's the interest that you earn on the interest you’ve already earned.
Let's illustrate with a simple example.
Imagine you invest $10,000 at an annual return rate of 7%. In the first year, you earn $700.
If you reinvest this, the next year, you'd earn 7% not just on your initial $10,000 but also on the additional $700. That works out to a $749 gain in the second year because you’re getting $700 from your initial investment PLUS $49 for the income you earned last year.
Over 20 years, without adding a penny more, your $10,000 would grow to over $38,600! This demonstrates the exponential growth potential that compounding offers, especially in cash-generating investments.
And the thing is, if you follow my strategy of regularly contributing new money (in addition to reinvesting that income) your account will grow even faster!
If you’d been contributing just an extra $1,000 per year to that investment, after 20 years you’d have put in a total of $30,000 but your account value would have climbed to an astonishing $78,692!
And that’s IF the value of the investment didn’t change at all. So, in stock terms, you bought it for $10 and 20 years later it was still worth $10.
But that’s not what happens when an investment spins off steady gains like that. Its value grows too and contributes even more to your account.
Academic Evidence: More Than Just Stories
Our personal successes, while inspirational, are enhanced by rigorous academic research, too. For instance:
- A study by European researchers in 2021 highlighted that companies focusing on cash returns as a primary metric consistently outperformed their counterparts in total shareholder returns in all of the 44 countries studied.
- In 2022, S&P Global released an updated study from the past decade that showed that not only do income-distributing investments outperform all other asset classes, but investments that grow those distributions over time outperform even those…
- Hartford Funds also offers an interesting perspective in its study that shows the outperformance of income-paying investments:
So it’s not just me, my clients, and our “circumstantial evidence” backing up the claim I’m making here.
There’s a lot of research by a lot of very smart people that shows the exact same thing that my investors and I experience in the real world.
The Road to Generational Wealth
Creating a legacy of wealth is no fleeting endeavor. It requires foresight, strategic planning, and unwavering patience.
But it’s simply not reserved only for the super-wealthy and professional investors. And it doesn’t have to be as difficult as many people believe it will be…
The magic of cash-generating investments, paired with the undeniable might of compounding, crafts an easy road to such a legacy.
And while the journey may seem daunting when you’re first getting started, the destination — a prosperous and secure retirement — is unquestionably worth every step of the trek.
Tapping Into the EV Charging Gold Mine
But I’m not the kind of person to just give a little information and then make you go out on your own to try it out.
I left Wall Street to help Main Street. And that’s exactly what I’ve spent my career doing since that fateful day.
So I’m also going to give you a head start by sharing one of my most recent (and potentially most lucrative) income-generating investments.
You could even call it an electrifying opportunity (if you like puns and “dad jokes” as much as I do, that is).
You see, the rapid adoption of electric vehicles (EVs) is reshaping our world. And projections suggest that by 2030, there could be over 140 million EVs on the road.
To support this, a vast network of charging stations will be indispensable. And both governments and private industry are rushing to build just such an expansive network…
This emerging market presents an unparalleled opportunity that I’d estimate 99.99% of the investing public is completely clueless about: collecting income every time an EV charges up.
Given the predicted trajectory of EV growth, this could very well be the biggest cash-generating investment I've ever uncovered. And I’ve pinpointed the companies that will help investors claim their share of all that cash.
I invite you to delve deeper into this opportunity with this special presentation I created for the members of my premium investing community, The Wealth Advisory.
Together, let's harness the power of these investments, ensure your portfolio is well-positioned for the future, and craft a prosperous retirement journey you never thought possible.
To your wealth, Jason Williams After graduating Cum Laude in finance
and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private
sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team
responsible for billions of dollars in daily trading. Jason left Wall Street to found his own
investment office and now shares the strategies he used and the network he built with you. Jason
is the founder of Main Street
Ventures, a pre-IPO investment newsletter; the founder of
Future Giants, a nano cap investing service; the editor of Alpha Profit Machine, an
algorithmic trading service designed specifically for retail
investors; and authors The Wealth Advisory income stock
newsletter. He is also the managing editor of Wealth
Daily. To learn more about Jason, click here. Want to hear more from Jason? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.
To your wealth,
After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; the editor of Alpha Profit Machine, an algorithmic trading service designed specifically for retail investors; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.
Want to hear more from Jason? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.