Masters Series: How to Collect Thousands of Dollars in 'Hidden' Income in America
Editor's note: Income investing isn't as simple as it seems.
There are rules you need to follow if you want to generate safe and steady income in the markets. Once you understand them, you can start to think about the bigger picture.
In today's Masters Series essay – adapted from an Income Intelligence special report – "Doc" explains how to think about the income streams around us that you may have never considered before...
How to Collect Thousands of Dollars in 'Hidden' Income in America
By Dr. David Eifrig, editor, Income Intelligence
When you look at a water fountain, what do you see?
A chance to get a drink of water?
A place where other people's germs hang out?
I see a way to earn thousands of dollars a year in extra income.
When you drive by a forest, what do you see?
A good place for a walk?
I see an investment safer than the stock market... and a way to earn a 5% yield on my savings.
I see similar income-producing opportunities when I look at prisons... telephones... potato chips... Band-Aids... and insurance applications.
Seemingly boring everyday things in your life can be huge income generators for you and your family.
Things like telephones, water fountains, forests, and prisons are actually huge sources of "hidden" income for investors who know how to find them. You simply have to know where to look... and how to tap them using a simple brokerage account available to anyone.
Income Streams All Around You
Productive enterprise is all around you.
It brings us cheap gasoline... fresh food... clean water... home entertainment... quality medical care... and thousands of other things.
All of these things are part of modern American life. But they don't appear in our lives by magic. To make these things part of everyday life, multiple businesses must be involved.
For example, consider what has to happen for you to make a simple phone call...
Miners have to dig up the minerals that go into the electric components of your phone.
Software designers have to develop programs that make your phone work.
A packaging company has to produce the box your phone comes in.
Electrical workers have to install a power grid to power your phone.
Construction workers have to build cellphone towers to carry your signal.
All of these workers must be paid, which employs payroll workers. They must be fed, which employs food-service workers. They must have working plumbing, which employs plumbers and more builders.
All this work... all this commerce... must happen just for a simple phone call.
It involves a lot of moving parts, a lot of service, and a lot of payments. Dozens of people get paid along the way. And if you know the secrets of smart investing, you can direct a portion of those payments into your bank account... which can result in thousands of dollars in extra income every single month.
Let's go back to that statement... the "secrets of smart investing."
It's the major key to safely directing these income streams into your bank account.
You see, when most folks invest, they invest in the most exciting thing they read in the paper or hear from their broker. People love to gamble on the possibility of finding the "next Facebook."
Although these investments may provide excitement, most people don't realize how badly the odds are stacked against them. For every successful stock like Facebook, there are a thousand failed businesses. It's very, very unlikely you'll be the one to get lucky.
What most investors ignore in their search for excitement is something seasoned professional investors flock to: boring, stable, reliable cash-flow streams. They flock to mostly boring businesses.
While amateur investors gamble on hot stocks and exciting stories, the world's best investors look to invest in very stable, very reliable businesses, the kind that won't go out of style. I'm talking about things like trash removal, mouthwash, beer, food, cable access, sewer services, candy, and insurance.
I don't know who will have the hottest website in 10 years... and I doubt you do, either. But I bet we can both agree that no matter what happens in high technology, people will still want to have a beer after work... or a piece of candy after dinner... or use mouthwash.
For example, Coca-Cola (KO) has increased its dividend payment to shareholders for more than 52 consecutive years. Selling soda may be boring, but it's reliable and profitable.
Or, consider Procter & Gamble (PG). It has increased its dividend payment to shareholders for 58 consecutive years. It sells boring products like diapers, toothpaste, and razors.
Some of the best income vehicles are in boring, stable areas of the economy... and that's a good thing. Boring is beautiful... and it's the key to collecting hidden income.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig
Editor's note: Doc has used this safe approach to lead his Income Intelligence subscribers to impressive gains and huge income streams while taking relatively little risk. And for a limited time, you can get a free extra year of Income Intelligence. Get the details on this risk-free trial offer right here.