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Lunch » Tags » Books » Reviews » Income Investing Secrets: How to Receive Ever-Growing Dividend and Interest Checks, Safeguard Your Portfolio and Retire Wealthy » User review

Income Investing Tips

  • Apr 13, 2010
Rating:
+5
Income Investing Secrets by Rich Stooker
Info Ring Press

Reviewed by Dr. Joseph S. Maresca CPA, CISA

The work describes many different types of investment vehicles available
to consumers. I find that Motley Fool is an excellent choice for a wide constituency of investors. In good times, the Fidelity Magellan Fund is an outstanding investment.

Income Investing Secrets proceeds to describe a plethora of investments
including:

(1) DRIPS are dividend reinvestment plans by major companies like the
telephone company, Altria and a whole host of others. The investment
is good for saving on fees charged in the mutual funds. In addition,
compounding builds a portfolio quicker and the prices paid for the
stocks are weighted so that risk is distributed in down markets.
The more sophisticated investors use "stop losses" and puts to
protect the portfolio in an unpredictable market environment.

(2) Closed end mutual funds have various types of income producing
assets with a higher yield due to the fund trading at a discount to
the NAV ( net asset value). Another advantage is that investors can
hold the income investments of their choosing.

(3) The share ETF is an ownership interest in a basket of securities
in gold, silver , precious metals/commodities ( to mention just a few ).
The ETF replicates an index and is cheaper to run than an open-end
mutual fund.

(4) The standard corporate stock with dividend provides basic needs
for the income - minded investor; such as Verizon. A rising star
is ITC which is slated to modernize the power grid in 18 states.
The FAN ETF basket of wind power companies is another fund with
great potential as the USA embraces wind technology in places like
the Great Southwest.

Some high powered dividend investments are as follows:
o Power Shares Dividend Achievers
o Power Shares High Yield Equity Dividends
o Power Shares International Dividend
o DEM-Emerging Markets
o PUI- Power Shares Dynamic Utilities
o DVY- Dow Jones Achievers Portfolio Select Dividends

REITS can be profitable; however, an investor needs to do due
diligence to investigate the holdings thoroughly.
Shopping malls and other commercial real estate have had problems
in recent years. The rule of thumb for REITS is location,
cash flow and capture of depreciation. Some of the best values in
real estate are in bankruptcies right here in the USA. South/Central
American real estate is a good value in places like Argentina.

The Master Limited Partnerships have some business risk; however,
these partnerships are regulated and governed by the UCC.
The book cites Power Income Investment, Enterprise Product Partners,
Kind Morgan Energy Partners, Plains All American Pipeline Partners,
ETP and TPP.

Bonds pay increased income mid-term but they are weaker over the
long term. With bonds, the higher the credit rating-the lower the
coupon rate for the bond. Internotes and core notes provide an
advantage to bond ownership without brokers.

Treasuries have a low yield, typically a low risk and
expenses of ownership are low. Nonetheless, treasuries could be
impacted by a growing federal debt and inflation.

The fixed annuity provides an agreed upon monthly income for
life. The investor loses if he/she dies early. In NYS, fixed annuities
are insured up to $250T. This vehicle is good for people with
small savings, no family to inherit or the need for a good tax shelter now.

The book provides a good resource on Swiss annuities. i.e.
o An Investor's Guide to Swiss Annuities by William T. McCord and Moine
o The Consumer Guide to Swiss Annuities by Jean-Francois Millard

I believe that silver, gold and commodities could be excellent investments
for the future because the worldwide population is on the increase,
many governments have large deficits and there are finite supplies.

The book cites some good references like "Dividend Growth and
Investment Strategy" by Klugman and "Beat the S & P with
dividends by O'Shea and Worrall.

Investors should investigate each investment option (due diligence)
prior to investing. A good place to start is the Securities and Exchange
Commission (EDGAR) on the internet.

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About the reviewer
Dr Joseph S Maresca ()
Ranked #25
Dr. Joseph S. Maresca CPA, CISA      Amazon / KDP Books:   SEARCH -College Vibrations by Dr.Joseph S. Maresca   SEARCH- Consumption,Savings and the Public Debt … more
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Wiki

"Rick Stooker is on the right track. We also intend to pursue a more income-oriented strategy in the years to come. Capital gains are subject to both the risk of a decline in economic fundamentals and a deterioration in market psychology. High-quality dividends and income are subject only to the former, and that makes a big difference in modeling your portfolio returns in retirement." -- Charles Lewis Sizemore CFA, Senior Analyst HS Dent Investment Management, LLC http://www.hsdent.com/ "I am a Chartered Accountant in Canada and spent most of my career teaching in a community college. "Over the years, I have used various "plans," with varying degrees of success, but had never given much thought to dividends, so I fell prey to the hype about capital gains. So what was I thinking? Should have been investing for dividends. "I also learned about some new investment vehicles, and got a "heads up" on some investments that I was aware of, but put on the back burner. "Wish I knew about all this stuff when I was in my 20's, or at least paid attention to the theories involved in my 40's." --- Dennis Wilson "What an eye-opener!!! "I had heard about REITs, MLPs, BDCs, but you really explained their advantages and disadvantages. Thank you, Rick. You have set me on the right path to generate a steady income stream." -- Kenny H While the financial markets are collapsing . . . Finally, you too can discover the ...
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Details

ISBN-10: 1450516661
ISBN-13: 978-1450516662
Author: Richard Stooker
Genre: Nonfiction
Publisher: CreateSpace
First to Review

"Income Investing Tips"
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