Tags: Adviser | Dividend | Stock | Pick

Predicting Rain Doesn't Make You Wealthy, Building Arks Does

By    |   Friday, 17 Aug 2012 09:30 AM

Many Americans older than 65 survived the Great Depression, and despite being immigrants without connections, trust funds or a fancy education, they built themselves a significant nest egg while providing their children and grandchildren with the education and advantages they never had.

Sadly, their thrift and determination wasn’t able to be passed down.

Many seniors worry about passing a "legacy" to their heirs. Even worse, many of their adult children have consciously, or unconsciously, funded their current lifestyle with doses of financial “outpatient care” from their parents and grandparents.

Editor's Note: Small-Town Ohio Accountant Uses Simple Forgotten Secret to Help Investors Pocket Millions

But as readers here know, to quote the late, great John Lennon: "There's no problem, only solutions."

You basically have three choices. You can:

• Keep complaining about Federal Reserve Chairman Ben Bernanke, our government and low interest rates;

• Let someone who doesn’t care about you manage your money; or

• Do what you have done best all of your life. Become successful in allocating capital yourself by using your common sense and intuition.

People always tell me my yard looks great and I thank them. One of my neighbors said, “Billy, you don’t cut the grass, so why are you taking credit?” I replied that I hire and pay the person who does, and they do a much better job than I ever could.

Today, many senior citizens have their money in banks (which nearly went broke four years ago) and collect 0.5 percent interest. Banks are backed by a country that is $16 trillion in debt and running deficits that are shameful.

That sounds kind of risky to me.

Why not own a company that pays a handsome quarterly dividend and has a high probability of capital appreciation? For example, a company that’s more than 100 years old with a cash flow in the billions of dollars — and which hasn't run a deficit in more than 50 years.

I would rather trust such a company with my money than trust the U.S. government with it.

The key is knowing at what price to buy such a company.

Editor's Note: Small-Town Ohio Accountant Uses Simple Forgotten Secret to Help Investors Pocket Millions

Your job is to find an adviser who you can trust to be honest and competent.

Honest is easy. Someone who charges you a low daily fee with a money-back guarantee isn’t trying to take advantage of you. But many so-called gurus want $5,000 or more up front for a yearly subscription.

The second part is harder: finding someone who has already achieved great success in finding dividend-yielding companies.

Obviously, a person who at age 32 was nearly broke — and at age 50 has an annual dividend income of almost twice their annual living expenses — is better than someone 65 years old who went to Harvard and only has $10,000 of annual dividend income, as is an adviser with a documented track record of success through Hulbert Financial digest.

Predicting rain doesn't make you wealthy, building arks does.

Now, stop predicting the weather and start looking for someone who can build you your own personal ark that combines safety, growth and income.

This is a stock picker’s market. Either be one or hire one with a proven track record.

For less than $2 per week and a money-back guarantee you can hire someone who fits that description.

ME.

The only person stopping you is YOU.

About the Author: Bill Spetrino

Bill Spetrino is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of the Dividend Machine. Discover more by Clicking Here Now.

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2012-30-17
Friday, 17 Aug 2012 09:30 AM
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