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You work hard all your life to put away a lump sum for retirement.
Will it last if you live to be 100?
What if I told you there was a way to create a steady paycheck during your retirement – one that pays until your very last day on earth?
It's a paycheck you can count on. And you don't have to work a job to get it.
You just have to invest smartly today. Here's what I am talking about.
| | | 1/14/2015 By Richard Stavros 
65.8%.
That's the increase in the number of Americans who've lived to see 100 over the past three decades.
Of course, this is great news.
After all, who doesn't want to live longer—particularly in retirement, when there's more time to spend with family and friends.
There's a problem, though.
If you—or your spouse—live long enough to take out membership in the century club, you'll need to fund your lifestyle for a full 35 years (or more) of retirement.
And with most retirees requiring at least $3,000 a month, that comes out to $1.26 million.
Now maybe you'll live to see 100, or maybe you won't. But you have to assume you will. It's not an estimate you want to shortchange.
That raises an awful question: what will happen to you—or your family—if you run out of money before you die?
A Fate Worse Than Death?
It's a prospect so horrifying that, according to Money magazine, "22% of Workers Would Rather Die Early Than Run Out of Money."
Yet this is the reality more and more retirees face. Because we're living so long, even some well-funded Americans find themselves scraping by in their golden years.
It's terrifying to think that you've worked so hard, put together a sizable nest egg … and you could still wind up broke.
And if you think Social Security will save you, think again.
Even the government admits the program will face its demise. Of course, they put it a bit differently, saying on the Social Security website that their projections hold true "until depletion of combined trust fund reserves in 2033."
But they admit Social Security will be unfunded less than 20 years from now.
And it gets worse…
Medical Bills Could Wipe Out Your Nest Egg
Living longer doesn't mean you escape medical bills. Just the opposite—the longer you live, the more you pay.
CNBC reports that the average couple retiring last year needed $295,000 for just a 75% chance of paying all medical bills during their lifetime.
They'd need $360,000 to have a 90% chance.
So let's add it all up: before retirement, you'll need to bank enough money to carry your lifestyle for perhaps 35 years—say $1.26 million—plus you'll need almost $400,000 to pay medical bills.
That's $1.66 million altogether.
Now I'm not telling you this to scare you. Quite the opposite.
Today I'm going to give you a simple strategy that can virtually guarantee you'll never be short of money as long as you live—even if you make it to 120!
Here's how it works…
Your Easy 4-Step Retirement Rescue Plan
Take a significant portion of your retirement fund (say 20% or more) and invest it in companies that meet the following rules… - The company must be fundamentally sound but have lots of room for long-term growth.
- The company should be located outside the U.S., or at least do business globally. Putting 100% of your money in the U.S. is a recipe for disaster, and you likely have lots of U.S. stocks in your portfolio already.
- The company should be traded on a U.S. market so you can easily buy and sell (though you may never want to sell).
- The company should have a proven track record of paying quarterly dividends.
It's pretty simple, but it works.
What you want to do is build up a portfolio of stocks that both appreciate and spin off cash in the form of dividends.
Reinvest those dividends until you retire—then let them come in as regular quarterly paychecks.
If you're already retired, the choice is yours: take the dividend checks as they come or reinvest them for much bigger checks later on.
How to Collect Your Retirement "Salary"
Here's a very realistic scenario…
Let's say before retirement you put $400,000 into stocks that meet the rules above. And let's say that on average they returned an 8% dividend every year.
That's an annual "salary" of $32,000.
And depending on how your income is structured, those paychecks could require 0% income tax.
Even better, they can keep rolling in until you're gone—and beyond—and you never have to dip into the actual stock equity.
Now let's stop right here for a moment, because I know what you're probably thinking: "Richard, isn't an 8% dividend return a little risky—and a little 'pie-in-the-sky?'"
I'm here to tell you it's not.
In fact, I'm going to show you three companies you can get in on today that easily meet all four of our paycheck-investing criteria.
These stocks are truly like golden geese—let them grow and they'll produce income for you as long as you're lucky enough to live.
3 Stocks That Put the Gold in Your Golden Years
I've put everything you need to know about all three of these companies in a new special report I want to give you for free.
It's called "Forever Income: 3 High-Yield Stocks for 2015 and Beyond," and it's my free gift to you just for taking a no-risk 90-day trial to my Global Income Edge service.
Inside, you'll read about Golden Years Paycheck Company #3, a bank that does business in several emerging markets. It's also made great inroads in the U.K. and has its eye on the U.S., too.
Now there's nothing remarkable about what this bank does. It provides typical banking services. And with a $107-billion market cap, it isn't going anywhere.
What is remarkable is the income stream it delivers to shareholders…
In 2014, it paid a dividend of $0.81 on a stock price of only $8.55. That's an income return of 9.5% per share!
In 2013, the dividend return was 9.1%, and they've paid a dividend every year since 1988!
Imagine having invested in this company since 1988 and reinvesting the dividends until you retire. Here's how that would look…
If you invested $10,000, you would have $91,300 today! That's enough to fund major medical bills at the end of your golden years—or buy a new Porsche. Or help your child or grandchild pay for college.
It's not too late.
I can't wait to give you all the details on this extraordinary stock—and my two other retirement-ready winners—in this new special report, which is just waiting for you now.
Go here to get your copy right away.
Editor's Note: Let me sweeten the pot by throwing in a second special report, "Income Afterburners," which contains five more income stocks to add to your portfolio.
As with all our Global Income Edge picks, they're international but they trade on American exchanges, so you can get in right away.
It's an interesting set of investments you won't find anywhere else. One is a seafood giant doing business in 22 countries. Another is in the oil and gas industry. Two telecom stocks (with different business models) and a global asset management company round out the list.
The critical thing they all share? Sky-high dividend yields.
What are you waiting for?
Click here to discover the names of these winners now! | | |
According to CNBC, if you have $295,000 saved just for medical expenses in retirement, then you have a 75% chance of having enough to pay all your medical bills.
I don't know about you but I'd like a 100% chance to pay all of my medical bills in retirement.
The problem comes when people dip into their nest egg for regular monthly expenses. It leaves them short to cover unforeseen expenses like medical bills.
Fortunately, there's a way to build a steady retirement paycheck that covers your regular living expenses, so you can leave your nest egg alone until you really need it. I show you how here (but you'll need to get in quick).
| | | 1/14/2015 By Chad Fraser 
If you've taken a road trip or trooped through an airport lately, you've likely noticed that America's infrastructure is in need of some serious TLC.
The American Society of Civil Engineers has taken note, too. In March 2013, it released its "report card" on the country's vital infrastructure, something it does every four years.
The final grade would get most students grounded.
On the whole, the ASCE gave America a D+, with the most dismal areas being levees and inland waterways, with a D- each. The bright spot was solid waste, thanks to a higher recycling rate (34%, up sharply from 14.5% in 1980) and a per-capita waste-generation rate that's largely held steady.
But the total bill to bring the country's crucial systems up to snuff is still enough to give any government sticker shock: a total of $3.6 trillion of required investment by 2020.
Urbanization Pressures Emerging Markets
Infrastructure demand is even higher in emerging markets, where more people are moving from rural to urban areas, adding to the need for modern water systems and power, telecommunications and transportation networks.
Emerging markets' continued growth is a major reason why consulting firm PwC recently forecast that worldwide infrastructure spending will hit $9 trillion a year by 2025, up from $4 trillion in 2012. Right now, emerging markets account for a little less than half of total global infrastructure outlays.
The need for more and better infrastructure comes at a tough time for governments in the developed world, saddled, as most are, with hefty debts. And even though emerging market debt levels have been more stable in recent years, these countries typically have higher borrowing costs than developed nations.
Nonetheless, if a country hopes to remain (or become) economically competitive, these investments will have to be made. That's where private investors come in, says PwC.
"Private investors may be called upon to do more, even for traditional public sector projects," reads the consultancy's latest infrastructure report, released last June. "Private investment in capital projects can free up public sector budgets and also provide more revenue as a result of an increase in the local tax base."
"Already, many financially constrained governments are embracing the concept of public-private partnerships, though they do add to future liabilities."
Governments may also offer other benefits, like tax breaks, to spur vital infrastructure investment as needs increase.
Electric Utilities "Among the Biggest Beneficiaries": Expert
Over at our Global Income Edge service, chief strategist Richard Stavros has been keeping a close watch on infrastructure spending around the world. As it ticks higher in the years ahead, he thinks electric utilities will be among the biggest beneficiaries.
"The trend in electricity demand is clear," Stavros wrote in a recent Global Income Edge article. "While power demand grows around 1% annually in developed countries, faster-growing countries show demand growth above 10%."
According to 2013 figures from the U.S. Energy Information Administration, global energy consumption will increase 56% between 2010 and 2040, with much of that growth coming from developing nations.
Two Utilities, Three Continents
Here's a brief look at two electric utilities Stavros covers in our Global Income Edge and Utility Forecaster advisories, respectively. Between them, they have major investments in North America, South America and Europe.
National Grid plc (NYSE: NGG) is the U.K.'s main electricity distributor and owns the country's high-pressure gas transmission system, as well as power-transmission systems in the northeastern U.S. While Europe continues to struggle, the U.K. has been the lone bright spot, with the Bank of England forecasting 3.0% GDP growth this year.
The company was created in 1990, when the U.K. broke up its electric utilities to create competition. National Grid owns the high-voltage transmission system in England and Wales and operates the system across Great Britain. It also owns transmission lines in parts of Europe.
With a market cap of US$52 billion, it's one of the world's largest energy utilities, comparable to Duke Energy (see below). The company doesn't own or operate power plants in the U.K. Instead, it generates revenue as one of the world's largest owners of wires that deliver electricity to customers. The stock yields 4.96%.
One utility that provides exposure to rising electricity demand in Latin America is Duke Energy NYSE: DUK), America's biggest utility. In addition to its regulated operations in the U.S., Duke has an international division with infrastructure investments in Brazil, Peru, Argentina and Chile.
In all, Duke's international segment owns, operates or has stakes in 4,900 megawatts of generation capacity, nearly two-thirds of which is hydroelectric. In 2013, the company's U.S. regulated operations still accounted for 86% of its earnings. The stock yields 3.72%.
Your 3 "Forever Income" Stocks
Richard Stavros has just released a free special report that reveals three new international income picks---one of which threw off a dividend return of 9.5% in 2014. That's the power of looking beyond the U.S. and toward the world's best dividend stocks.
Right now, a small group of investors are using these very same investments to build their "forever incomes," which will keep rolling in ... even if they live till 120!
Get the full surprising story here. | | |
You probably think there's no way that you'll live to see 100. But what if you do?
To cover all of your medical expenses plus $3,000 per month from 65 to 100, you'll need $1.66 million.
Of course, $3,000 a month might not be enough to have the kind of lifestyle you really want in retirement – especially 20 years from now.
Fact is, it's simple to create a steady paycheck – even in retirement – of $3,000 or $5,000 per month, or more. And these paychecks grow to match inflation automatically.
I call them Golden Years Paychecks. Click here for full instructions on creating your own.
| | | 1/13/2015 By Robert Rapier 
High oil prices have led to a surge of drilling for oil and gas in the U.S. in recent years. The Baker Hughes Rig Count shows a sharp rise in natural gas drilling activity that corresponded with the very high natural gas prices of 2005-2008, followed by a surge of oil drilling activity that took place as oil prices bounced around $100 per barrel (bbl): Now that oil and gas prices are down sharply, rig demand is likely to follow. In the near term -- which I would consider under two years in this context -- low oil and gas prices will result in diminished drilling activity, particularly in more expensive areas. We can already see in the graphic above that the number of rigs drilling for oil has begun to drop recently after peaking at about 1,600 in October. But the decline is more pronounced in some areas. Among the major basins in the U.S., the Permian Basin has by far the most drilling rigs, but it also suffered the sharpest decline in rigs in response to lower oil and gas prices:
 Over the longer term, oil and gas plays that cost more to produce than the expected price of the commodity will simply not be developed, and if they have been developed they could ultimately be idled if lifting costs exceed the profit margin. A recent Bloomberg story tells us where projects may be cancelled by identifying the breakeven costs in a number of different shale oil plays, with $80/bbl as a reference point: 
Source: Bloomberg New Energy Finance
Note the number of areas in the Permian Basin in West Texas and the Bakken Formation in North Dakota that have break even costs above $70/bbl. Thus, it is not surprising that the biggest drops in drilling activity have taken place in these areas. (Note that "Williston Basin" in the graphic above is where the Bakken is located). The biggest impact will be on the oil and gas producers in these areas. Occidental Petroleum (NYSE: OXY) and Pioneer Natural Resources (NYSE: PXD) are respectively the #1 and #2 Permian oil producers. Smaller, pure Permian Basin operators include Laredo Petroleum (NYSE: LPI) and Concho Resources (NYSE: CXO). In the Bakken, Continental Resources (NYSE: CLR) has been the top oil producer, but Whiting Petroleum (NYSE: WLL) is expected to take over that role following its acquisition of Kodiak Oil and Gas. Oasis Petroleum (NYSE: OAS) is a smaller Bakken pure play that could find itself in financial trouble should oil prices remain low. The reduction in drilling activity will not entirely stop growth in U.S. oil production in 2015, but if the price of oil remains at the current depressed levels over the next year, in 2016 we are likely to see the first production decline in the U.S. since 2007-2008. This article originally appeared in the The Energy Letter column. Never miss an issue. Sign up to receive The Energy Letter by email. | | |
In retirement, the average American couple will need $3,000 per month just to get by. That doesn't sound like a lot until you consider the fact that you may well live to be 100 – that adds up to $1.26 million you'll need.
And that doesn't even include medical bills.
Here's the solution. In addition to building a lump-sum nest egg, create a stream of steady, reliable paychecks that pay out until the day you die – even if you live to be 120. Here's an easy way to create your steady Golden Years Paychecks.
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