How to Generate More Income to Beat Inflation
After a painful year, many Americans now face an income crisis.
As inflation roared at the pump, the grocery store, and everywhere else, prices increased faster than income for middle-class Americans, according to the Congressional Budget Office.
That’s what happened to nearly 75% of middle-class families, according to a survey by Primerica. They are not earning enough to keep up with the higher cost of living.
Even more devastating for the future, three in four middle-class families can’t save for the future right now – retirement, college tuition, dream vacations, and more.
This isn’t a temporary inconvenience. It’s a full-blown crisis.
Inflation is slowing, which is good news, as the Federal Reserve remains aggressive with interest rates. But we would be fools to expect prices to simply snap back to where they were before this whole mess started. (They’ll probably never come down that far anyway.)
This is the time to take matters into your own hands and start earning more income now.
I’m not talking about leaving your job and hoping to earn more at a new one, though you could certainly do that.
I’m talking about a way of investing that I believe could be a lifesaver for many people. Our quantum system and algorithms play a major role in uncovering the best specific investments, but the first step is to redefine the concept of income investing.
The Old Way Doesn’t Work Anymore
You may think income investing is boring. I wouldn’t blame you.
But that’s an archaic idea.
Times have changed. The markets have changed. The economy has changed.
What used to work doesn’t anymore.
When most people think of income investing, they think of dividend-paying stocks. I have nothing against dividend-paying stocks; they can be a good choice for some investors. But they have flaws.
The biggest problem is that you need to invest a lot just to collect a decent-sized payout. If you put $10,000 into a stock that yields 4% – which is more than most stocks – you earn $400 for the year.
Every little bit helps, but an extra $7.69 a week isn’t going to make enough of a difference for most people.
In the fourth quarter of 2022, full-time workers earned a median average of $1,085 per week – a little over $56,000 a year. If you boosted your income by 25%, that extra $14,000 a year would make a difference.
To earn 14 grand in a 4% dividend stock, you would need to invest $350,000. Most people can’t do that.
Bonds are also popular income investments, but they aren’t great either. Government bonds have been eaten alive by inflation (as have pretty much all fixed-income investments). And even if you find a good bond yielding 5%, you face the same problem – you need a big investment to make a good return.
A Better Way to Boost Your Income
The answer is actually staring us in the face. It’s like not seeing the forest for the trees.
What if that $10,000 you invested for a 4% dividend earned you 20% instead? And in less than the full year. That’s an extra $2,000 right there.
A 30% return earns you an extra $3,000. (And that’s definitely doable, as you’ll see in a moment.)
And what if you could repeat that process over and over? You’re looking at potentially tens of thousands of extra dollars.
That’s enough to get you back on track … to meet your expenses … save for the future … take that trip of a lifetime … buy your dream home.
And best of all, this investment is easy to buy and sell as a stock.
That’s because it is stocks. But only certain types of stocks.
Finding the Cash Kings
What’s the most important outcome of any investment?
Profits, of course – specifically, realized profits.
Realized gains are cash in your account. You can pay the bills with them. Save for retirement. Finance your kid’s college education.
To make a difference to your income, you want to create a steady, ongoing stream of realized profits.
I know this isn’t what you’re used to hearing, but there’s nothing in the rulebook that says you can’t focus on cash flow when investing in stocks.
This is at the heart of my new Great American Cash-Flow Project.
I didn’t develop my quantum system and complicated algorithms with cash flow in mind. I just wanted to make good money consistently.
Turns out that my system is tailor-made for this stacking gains style of investing.
First, it helps us find the absolute best stocks in the market. On any given day, fewer than 1% of stocks make it through my system to even be considered a possible recommendation for my Quantum Edge Pro readers.
These are shares of companies that have superior fundamentals – you can’t make money consistently in weak companies.
They also have strong technicals – we invest in stocks that are already on the move rather than trying to predict a turnaround.
And here’s the kicker: Big Money is buying these stocks. The really Big Money, like millions of shares, worth millions of dollars.
I cut my teeth in this business facilitating exactly these Big Money trades. I was the middleman that matched up the buyers and sellers, and I learned firsthand how to detect unusually large institutional buying, down to the specific stock.
Super strong fundamentals and technicals combined with Big Money inflows give you the highest probability of making money – and good money at that.
My 30 years of research and backtesting revealed something else very interesting: The ideal holding time for these investments is six to nine months.
With a little bit of setup time, you can build a portfolio and expect to start locking in profits on a regular basis.
Here’s a current example from the Quantum Edge Pro portfolio: In October, I recommended a lesser-known company named Arch Capital Group (ACGL). It’s an insurance company, which I realize may not sound like the most exciting company to invest in. But it had everything I look for, and it gets a lot more exciting when the stock is up more than 30% in three months.
And, in fact, we just locked in some of those gains today, giving us a nice shot of cash in a relatively short amount of time.
That’s the goal in a nutshell – and to do it time and time again.
If you would like to learn more about boosting your income, I invite you to check out The Great American Cash-Flow Project webinar. I think this information could help a lot of investors like you get back on track after a long and difficult year.
Regards,
Editor, Jason Bodner’s Power Trends
P.S. Waiting years for a 5% or 10% gain isn’t going to cut it.
You need an approach that could generate cash regularly, where you could make tens of thousands of dollars .. and then “ladder” them together.
My algorithm shows which of those stocks to get in front of and when to exit, so you could have a “chain” of regular income directly into your account.
You can learn more in the new Great America Cash-Flow Project video.
This video will only be available for a short time, so check it out now before it goes away.