I was chatting with a woman last week who asked for some help reorganizing her investment portfolio to generate income.
She’s about 5 years from retirement and suddenly realized that she needs something more than social security to live on.
She has about $50k in stocks that don’t pay anything.
I told her she could sell those stocks and reinvest into 5-6 of my money machine ideas in Income Investors Academy.
If she locks in an average yield of 12%, she’ll be generating $9,441 in income in 5 years.
She got upset and asked what else she could do.
I asked if she had any other investments and she replied she had about $200k in gold.
But she doesn’t want to sell it.
I told her that if she just sold half her gold and invested in the 12% yielders, she’d be making $28,323 a year in 5 years.
She got excited because that would cover her house payment and most of her expenses.
But she still refused to sell her gold.
It’s not my job to judge people.
It is my job to teach, so that’s what I’mma do.
I don’t know how long she’s had the gold or how she acquired it, but let’s say she just bought $200k worth of gold all at once on Jan 20, 2010.
She would have paid $1,120.25 an ounce and today, 10 years later, that gold is worth $1,557.60 an ounce – a gain of 39%.
Bt what if she would have taken that same $200k and invested it in one of my fave stocks, Costco?
She would have paid $58.27 a share and today, 10 years later, that stock is worth $312.46 a share – a gain of 435.6%.
And that’s just capital gains.
When we reinvest the dividends, the gain is 589%.
Today her Costco stock would be worth $1,178,000 and produce $52,000 a year in income.
Again, not judging.
Investment decisions are personal and everyone (hopefully) has good reasons for investing the way they do.
Every decision we make – good or bad – about money or not – has a consequence.
It’s just my mission in life to help people make better decisions about investments so that they can set themselves up for the good kind of consequences.