The New Rules
of 401(k) Investing
Before you put another dime in your 401(k), I urge you to read this special message. Since you first opened your 401(k), the rules have changed. Unless you change with them, my friend, you could retire with much less money than you anticipated. Here are the new rules and the right way to reposition your holdings in a way that will provide you with a rising source of income that will cover your future expenses—and then some. |
Fellow Investor,
I don’t know when you’re planning to pull money out of your 401(k), but I know this: Millions of investors are going to get the shock of their investing lives when they begin to withdraw their funds:
- Shocked as they realize, too late, that their 401(k) has failed to give them the capital gains their growth investment promised.
- Shocked to discover that their most-loved holdings will never deliver the income they need, and worst of all…
- Shocked to see years of struggle, saving and investment not pay off, ultimately setting back their standard of living during what should have been their golden years.
I don’t want to see that happen to you. That’s why I’ve sent you this special edition of Profitable Investing:
- To help you learn the new rules of 401(k) investing so you don’t get stuck in the dangerous and costly trap that most investors have already fallen into, and
- To share with you the same cash-on-cash investment approach that my readers are following right now—investments that have already helped my readers grow 60% richer over the past two years and can help you, too, claim a richer, more affluent retirement lifestyle.
Let me begin with…
The First New Rule You Must Follow Immediately
Rule #1: Buy Income Streams, Not Growth Stocks
As you’ll remember, when you first started saving for your retirement, you were advised to invest for growth, right? At the time, you were told that income investments simply wouldn’t give you the growth you needed to fund your retirement. And it was true.
Tragically, that all changed over the past three years as income stocks have outperformed the indexes. In fact, in 2004, as the DOW, NASDAQ and NYSE slid sideways, dividend-paying stocks outgained all indexes by more than $2-to-$1…
…while, at the same time, the bottom fell out on America’s biggest growth stocks, with Cisco, Intel, Merck and JDS Uniphase collapsing an average of 20%!
And this is no one-year anomaly, but a powerful new megatrend that will continue for the next 10 years—not only affecting your 401(k), but everything you own.
The Reason Is Simple:Millions of retirement-age investors are beginning to pull trillions of dollars out of the growth market to generate income for their retirement.
This is the same money, mind you—the very same IRA, investment and 401(k) money—that flooded Wall Street and not only pushed the indexes to new heights…
…but also fueled the great bull market of the 1990s and made visionary investors rich beyond their wildest dreams.
Yet, in the next 10 years, half of this capital will be out of growth stocks for good. And within a decade after that, all of it will be sitting in income-producing stocks and bonds.
Frankly, this should come as no surprise.
For our entire investing lives, we’ve been conditioned by the brokerage houses, the financial media and the mutual fund companies to shift our assets to income-producing investments as we approach retirement.
This is why you’ve seen dividend stocks outperform the major market indexes 2-to-1 in 2004… why growth-stock valuations will continue to drop, as our projections show, over the next 15 years… and why the 401(k) investing rules have changed so dramatically.
For these reasons, if you fail to reposition your 401(k) and other assets in light of this new rule, you’ll enter retirement with a fraction of the assets you need. And you’ll kick yourself for not following this first and most important rule: Buy income streams, not growth stocks.
In your 401(k), you’re probably overweighted in growth mutual funds and underinvested in growth and income funds – the kind of funds that pay good dividends and will do best over the next decade and beyond. As you’ll see, using this rule by itself, you’ll eliminate nonperforming growth stocks from ever ruining your retirement.
Rule #2: Buy Companies With Long-Term Histories of Raising Dividends
The reason is simple. The days when you could live happily ever after on a fixed income are long gone. While the government hates to admit it, higher gas prices, consumer prices and food prices are all indicators of rising inflation.
So by locking yourself into companies that are stingy with their payouts, you’re locking yourself into a lower lifestyle. This is why you want to always—I repeat, always—invest in companies that pay consistently rising dividends. That way you get the best of both worlds—solid income now and proportionally greater income later.
A great example is one of the five stocks I recommend later in this edition, Kinder Morgan. As you’ll see, for every $1 you invested just seven years ago, you would be receiving—hold on to your hat—an incredible 35% annually in dividends!
By investing with this second rule in mind, over the past 12 months my top five cash-on-cash companies have not only handed my readers gains of 47%…
…but have also given them a rich source of rising income that’s on track to deliver more than 16% in annual dividends for every dollar they invest now.
That’s why I call them “cash-on-cash” stocks. They hand you an immediate return for every single dollar you invest in them now—along with a juggernaut of capital growth that you won’t find in any other investment on Wall Street.
Rule #3: Buy High-Yielding Companies Before
the Rest of Wall Street Dives In.
The fact is, the leading edge of baby boomers (boomers being those born between 1946 and 1964) will turn 60 years old next year. This means that millions of Americans will be making the shift from growth to income, which will continue to undermine growth stocks.
The end result will put powerful upward pressure under the prices of our top high-yielding income stocks. If you act quickly, you can still buy these companies for one-tenth of what they’ll be worth in the future… and lock in a rising source of income that could hand you 15%, 20% or even 30% in annual future dividends for every $1 that you invest now.
For over two decades, my readers have earned $10-for-$1 by investing light-years ahead of the most powerful trends of our time.
And I can tell you with absolute certainty that if you follow these new 401(k) rules now, you’ll easily pyramid your wealth year after year as every graduating class of baby boomer retirees funnels money out of growth stocks and into income stocks.
5 Top Cash-on-Cash Stocks to Own Now
If you believe that the new rules of 401(k) investing will help you claim a richer retirement, then your next move is crystal clear: To make sure you own the safest and highest-yielding dividend stocks on the planet.
In your free copy of 5 Top Cash-on-Cash Stocks to Own Now, you’ll find five ground-floor opportunities that not only could turn a $10,000 401(k) investment into $35,000, $45,000 or even $55,000 by New Year’s Eve 2008…
…but could also hand you incredible cash-on-cash returns of up to 16% for every $1 you invest today.
I call them cash-on-cash returns for two reasons: (1) They hand you an immediate return for every single dollar you invest in them now, and (2) Their income growth will inevitably reward you with a juggernaut of capital gains.
Here’s a sneak preview from your Special Report. Or if you prefer, click here now to read your free report in its entirety. Again, it’s yours free as part of a special no-risk trial subscription to Profitable Investing.
Company A is a powerhouse telecom and "the triple crown" winner of investments for America's 50 million retirement-bound investors.
All thanks to the company's outstanding dividend, armored-car-like safety and explosive profit potential.
As you'll see in your free report, this is the AT&T monopoly story played out across the Atlantic Ocean -- with higher income and bigger gains.
Here's why:
1. Because it's an offshore telecom, U.S. government regulators couldn't break its stranglehold on the nation's phone system if they tried.
For these reasons, profits are 42% higher now than during the big telecom boom of the 1990s and will continue to explode over the next five years, as I'll show you in your free report.
2. What's more, because the company is valued in its home currency, you're going to enjoy another 15% to 20% in currency appreciation over the next two years.
How can this be? Because the dollar has been in decline around the world for the past 12 months and will continue to fall because of America's mammoth trade deficit.
These are just two reasons why profits are higher now than during the big telecom boom of the 1990s and just a sneak preview of what lies ahead.
In fact, profits were so good last year, the company raised its annual dividend—get this—an incredible 54%. I'm banking that this company will continue to richly reward investors year after year.
The result could easily push your profits past 100% and hand you future dividend yields of 12% to 15% for every $1 invested now.
The last time I felt this strongly about a telecom, I urged the readers of Profitable Investing to buy Baby Bell Ameritech when it was selling for a rock-bottom 12-times earnings.
That's before its shares skyrocketed 288%, turning a $10,000 stake into a whopping $38,000. I'm betting the results this time around will be even better. You'll find the full details in your free report.
Company B is by far an income investor's dream come true. If you were only to buy one of my recommendations, this would be it. I call it the perfect growth and income investment for the next 10 years.
Why? Because owning this trillion-dollar financial services company is like owning the world's biggest "money warehouse" all rented to Triple-A tenants on long-term Triple-Net leases that automatically increase 14% every year.
Sounds too good to be true, right?
As you'll learn, it's not only true, but it will ultimately be one -- if not the biggest -- of my cash-on-cash wealth builders for 2006 and beyond.
Here's why:
1. Right off the bat, this financial services company is already the Fort Knox of IRAs, with more than a trillion dollars in IRAs, CDs and savings accounts.
2. What's more, deposits are expected to explode by another trillion dollars as millions of Americans shift out of growth stocks and into this company's income investments and CDs, piling on the profits for this cash-on-cash winner.
3. As if that weren't exciting enough, the company was just granted the first Internet banking license in China, opening the doors to trillions of dollars in new deposits from the world's largest nation.
In fact, over the past three years while Wall Street was looking the other way, this stodgy "income stock" was beating the pants off the indexes -- not only handing investors a whopping 60% in returns, but also respectable 3.5% annual dividends.
As you'll read in your free report, these gains are only a glimpse of what lies ahead, as the company's foothold in China -- and direct access to trillions of dollars -- becomes the ultimate wealth trigger that will drive this stock higher and higher.
For these reasons, I'm placing a huge chunk of my own IRA and retirement funds in this one. Why not? Profits are surging…the company has fabulous growth potenial…a rock-solid balance sheet…high dividend yield…and international diversification you won't find in any other investment.
Mark my words: When the news gets out on this one, my friend, you could easily see 200% to 300% returns, plus grab a rising income stream that could hand you 12% to 17% in annual dividends -- all for simply staking your claim now. Subscribe to Profitable Investing and receive full details in your free report.
Company C is a mammoth mutual fund management company that will soon become another major profit-taker as a result of the massive retirement boom that's headed our way.
The reason is so incredibly simple: The billions of dollars that are about to come out of growth stocks and go into income funds will be mind-boggling.
As a result, both management fees and investor profit will simply go through the roof!
As I look at the balance sheet of my favorite fund company, I simply can't wipe the grin off my face at the thought of the profits we're going to pocket.
Two reasons:
- This world-class company manages more than 100 of Wall Street's highest-rated mutual funds -- collecting over $3 billion in fees now. My projections show that this should more than double over the next 10 years.
- What's more, the company has increased investor dividends fivefold over the past decade, making this company the prime beneficiary of income-hungry retirees.
In fact, long-term investors who were collecting $1,000 a month in dividend income in the 1990s are now collecting $5,000 a month. That's on top of -- hold onto your hat -- the company's 2,150% gains!
When you consider that dividend income is the mother's milk of retirement, you can see why this mutual fund manager is such a can't-miss play.
Do yourself a favor, take a small position in this company today and you'll not only steal a yield of 6% now…but you’ll also capture a rising income stream that could easily net you total returns of 300%, 400%, 500% or more.
Company D could easily be my second favorite cash-on-cash stock for the next five years. Why? This major income producer lies directly at the crossroads of two major megatrends.
You see, just as 76 million baby boomers are going to line up behind dividend stocks to fund their retirements, they're also going to line up at pharmacies around the country.
What for? You guessed it. To buy everything from cholesterol-lowering medicines to pain pills to insulin to chemotherapy drugs.
For these reasons, the health care sector will enjoy a new Renaissance, as millions of Americans enter the market for age-related medicines and spend billions of dollars.
And my next company will be the biggest profit-taker of all. Two reasons why:
- The company's lineup of blockbuster drugs looks like a string of hit $100 million Hollywood movies with a recurring revenue stream that would make even DreamWorks's Steven Spielberg jealous, and
- A rich dividend that's growing 6-times faster than the market and could easily quadruple your income in the next few years.
In fact, if you had chosen to hitch your claim to this cash-on-cash winner in the early 1990s, you would have seen your wealth grow 1,600% -- not including dividends. A $10,000 investment would now be worth $160,000.
When you read your free copy of 5 Top Cash-on-Cash Stocks to Own Now, you'll see why I'm even more excited about the company's new drugs under development, the rich income stream it offers you and why I'm projecting total returns in the range of 300% to 500% on this one.
Get Your Free Report Now…and Live Off Your Profits for the Rest of Your Life
Make no mistake: We stand at the dawn of a whole new era. The massive shift from growth to income investing is already under way.
If you choose to take a wait-and-see approach -- trust me -- you'll continue to see your wealth erode and miss out on the massive gains that are headed your way.
That's why it's so important you read your free copy of 5 Top Cash-on-Cash Stocks to Own Now. I want you to have it for two reasons:
- Because it's the best way I know to make sure that you truly understand the enormous wealth-building opportunity at hand, and
- To introduce you to the kind of wealth-building opportunities I will bring you each month as a reader of my Profitable Investing advisory.
As you'll see, my current subscribers have already profited from the companies that I'm going to introduce to you and are now squarely positioned to reap more wealth and opportunity from the dramatic changes now unfolding.
As a new subscriber, you too can count on me to be at your side every month to alert you to the trends sweeping the world and to connect the dots to the companies most likely to profit.
Subscribing means that you'll also receive, on a regular monthly basis, my current market commentary along with updates on our current recommendations and advance "stock watch" alerts on stocks that we're planning to sell as well as those about to join our buy list.
Those who joined us 18 months ago have earned an average of 109%+ in our top picks. All of them got started by accepting my most recent profit forecast along with a risk-free subscription to Profitable Investing.
Now it's your turn.
If by now you agree with me that buying income streams is the path to wealth, then you owe it to yourself to receive your free report now.
Should you say "yes" to a risk-free trial…
I Guarantee You'll Grow at
Least 25% Richer in Six Months
or You Won't Pay a Dime
Naturally, there's no way in the world I could make this kind of guarantee if I weren't convinced beyond a doubt that our 109%+ average gains of the past 18 months were just a sneak preview of the wealth-building opportunities that lie ahead.
That's why, if my recommendations don't make you at least 25% in dividends and growth over the next six months, you can cancel and get all your money back. No questions asked.
Plus you can keep all the issues and reports I sent you FREE just for giving Profitable Investing a fair try.
You may think that I'm going way out on a limb to offer such a strong guarantee. I'm not, really.
On this simple, fair-and-square basis, Profitable Investing has become one of the most-respected and profitable investment advisories in America. Once you join us, you'll see why. Plus, you'll see how my recommendations have handed my readers $10-for-$1 gains since 1984.
Lock In Your Profits Now Along With
This Special Introductory 50% Discount
By simply saying "yes" to my risk-free offer today, you'll not only get in on the ground floor of this exciting new boom…
… you'll also receive a full year's worth of Profitable Investing at the special introductory rate of $99.95 -- a 50% savings off the regular rate.
Your special discount price includes your free copy of 5 Top Cash-on-Cash Stocks to Own Now, 12 monthly issues of Profitable Investing, access to my private website and my Flash Alert email hotline service.
In this bargain, you'll also receive two additional free reports that I've written to help you continue to take advantage of the dramatic changes now unfolding: 4 Top Cash-on-Cash Mutual Funds That Will Make You 25%–55% Richer Every Two Years and Richard Band's Complete Guide to Cash-on-Cash Investing.
But when you join me for two years, you'll save $190 and get 24 monthly issues for only $189, plus these three additional free wealth-building reports: Accelerated Retirement Strategies, How to Cash in on the Global Stock Boom, and Strike It Rich in My Favorite Convertible Bond.
When you consider that you can cancel at any time during the first six months and receive a full refund, why not sign up for two years and get all six of my wealth-building reports FREE before you make your final decision?
As your reward, you'll learn how you can take advantage of the greatest economic shift the world has ever seen…and grab your share of the great income boom that lies ahead.
I guarantee it will be the most profitable risk-free decision you'll make in your life. You have my word.
Yours for Profitable Investing,
Richard E. Band
Profitable Investing