Author Archive: Michael Foster

Today I want to show you how you can retire on $405,000—and with just five buys, too! Put together, these five stocks and funds hand you a 7.4%-yielding portfolio that will pay you reliably for decades.

First, though, let’s quickly run through how our “5-buy” portfolio will work—and how it proves the so-called “experts,” who say you need a million dollars or more to clock out—are dead wrong.

A Million-Dollar Retirement … for $405K!?

To be smack in the middle of income in America, you need to bring in about $30,000 per year. So, at a 7.4% yield, you’d need to invest $405,000.… Read more

Today we’re going to dive into some of the proven indicators I use every day to forecast what’s next for the economy.

Then I’ll name an off-the-radar fund holding some of the best-known growth stocks in the US. It pays an 8% dividend and is set to gain as the economy does something too few people (and especially the media) expect it to—keep growing!

More on all of this in a moment. First, to really make the most of the opportunity we’re getting today, you need to be able to do what most people can’t—buy when everyone else is panicking.… Read more

You’ve probably heard of Michael Burry.

Played by Christian Bale in the film The Big Short, Burry famously made nearly a billion dollars betting against the housing bubble in the 2000s.

Now this legendary contrarian has a new target: funds.

He’s mostly panning passive exchange-traded funds (ETFs), but he’s got a lot of disdain to go around. In a recent interview with Bloomberg, Burry said that many funds are forming a bubble that’s getting bigger, whether they’re “open-end, closed-end or ETF.”

As a big fan of closed-end funds (CEFs)—including the top-quality 8.6%-yielder I’ll show you shortly—this comment stopped me.… Read more

In a second, I’m going to reveal three real estate stocks that are much better than buying rental property of your own.

Why? Because this trio:

1. Pays a 9.3% dividend, on average—with one yielding an incredible 11%. I think you’ll agree that this is a pretty tough return for most “real” landlords to get.
2. Takes zero work—you just buy these property-focused stocks and collect your dividends (and price upside!), and …
3. Gets you way more diversification than your typical basement apartment, semi-detached or “box in the sky” condo ever could.

You may have caught on that I’m talking about real estate investment trusts (REITs).… Read more

Today I’m going to show you how one savvy buy can help you turn $100K into a $500,000 windfall. Plus, you’ll “automatically” build yourself a tidy monthly income stream—I’m talking $2,700+ here—without lifting a finger.

That’s enough for many folks to retire on.

At the center of it all is a little-known group of investments called closed-end funds (CEFs)—and one fund, in particular, whose name, dividend and incredible track record I’ll reveal in a moment.

For now, here are the two key things you need to know about CEFs: first, they pay huge dividends (6.9%, on average, with some paying well into the double digits).… Read more

Are you worried you’ll make the wrong call in this gyrating market? It’s a reasonable fear, with the Dow heading up 200 points one day and down 600 the next—and dark trade-war headlines piling up daily.

But sitting in cash is even more dangerous! Because your stuffed mattress is at the whim of inflation—and that slow cash drain leaves you at a real risk of outliving your money in retirement!

So today I’m going to share where my models see this market heading. Plus I’ll reveal one weird fund that sets you up for double-digit upside and a huge 7.1% dividend, too.… Read more

Today I’m going to show you nothing less than a “dividend unicorn”: a closed-end fund (CEF) yielding 8.8% that’s raised its payout 24% in just the last six months. (And yes, it’s primed for many more hikes, too.)

Get this: because of the weirdness of the CEF market, this cash machine is still cheap today—trading at 13% off its “retail” price!

Let’s dive in.

I’m talking about the PGIM High Yield Bond Fund (ISD). It’s a smaller CEF (with just $552 million in assets). That small size helps set up our chance to buy cheap—and I’ll say more about why this deal exists in just a moment.… Read more

Forget the trade war noise. Here’s the only thing you need to know: if you’d bulked up your stock holdings on any of the dips we’ve seen in the last four years, you’d be a lot richer today.

Buying the Dip Amplifies a 65% Gain

The reason for the market’s “one step back, two steps ahead” pattern is simple: despite the interest rate- and trade-driven terror, corporate profits and sales are rising (as are workers’ wages), and unemployment is low.

In other words, the US economy is solid—and it’s stayed solid through every short-term crisis of the last few years. So now we have another pullback that’s given us another chance to amplify our upside.… Read more

If you’re like most folks, you likely at least take a second look when you run into a big dividend yield, like, say, 14%.

Think about that for a second: drop, say, $100K into a fund like that and just seven years later, you’d have collected enough in dividends to recoup your entire initial stake.

Everything else is gravy!

But when we come across a dividend that big, we need to do a second-level analysis to make sure it’s sustainable. And that brings me to the closed-end fund (CEF) I want to tell you about today—it gives us that 14% yield but misses the mark on just about every factor you could imagine, giving us:

• Impossibly high management fees
• A portfolio that underperforms the market
• An overpriced valuation, and …
• Its profits are falling short of payouts.

The most reliable recession indicator in the world just flashed red—and it’s actually setting us up for 33%+ gains in the next two years.

A contradiction? Sure sounds like it.

But history tells us we can expect a fast return like this when the economy and stock market look exactly like they do right now.

I’ve got two ways for you to grab a piece of the action, one of which even hands us a growing 7% cash dividend.

And when I say “growing,” I mean it: this already-huge cash stream has grown 96% in the last 15 years, and it’s backed by the strongest stocks in America (I’m talking about the 30 names on the Dow Jones Industrial Average), so there’s plenty more to come.… Read more