This SINGLE Mistake Is Destroying Your Retirement Account...
Greetings from the Aria Hotel and casino in sunny Las Vegas, Nevada!
This week, I’m attending an investment conference hosted by Stansberry Research. It’s been a great opportunity to hear what top analysts are looking at in the markets, and to share ideas with other investors.
Cullen Roche is one of the speakers I’ve been most impressed with. Cullen is a macro investor with an excellent track record and some very unique views on global markets. I’ve followed his writing for a long time, so it was exciting to hear him speak in person.
Today, I want to share one of his critical warnings, and follow it up with how you can manage your wealth in line with this important point…
“The Worst Investment You Can Make Today”
Cullen started his presentation by taking a spin around the world and pointing out different investment opportunities.
He explained how speculative stocks in the United States were dangerous. How government bonds around the world were virtually guaranteeing investors a negative real return (adjusted for inflation). He explained how some emerging market stocks were worth considering (but still risky).
And then he gave us the bad news…
“Holding cash in today’s market is the absolute WORST long-term investment you can make.”
The room got very quiet as Cullen paused to let it sink in.
He had just been telling us about all the other risky investments we should avoid. And now he was telling us that the worst thing we could do is hold cash in our accounts. I could tell that this was a sobering moment for many of the investors in the audience.
Of course, if you’ve been reading The Daily Edge for some time, you already know that cash (specifically U.S. dollars) is declining in value. That’s because the U.S. dollar has been falling steadily this year, leaving you with less spending power and sapping the value of your retirement accounts.
Cullen Roche was clear with his warning…
This trend is not likely to end any time soon. And if you simply stuff your money under a mattress (or hold it in a savings account), you’re going to be in trouble.
So what should investors do instead?
Well, Cullen had many of the same pieces of advice that we’ve been talking about here at The Daily Edge.
We’ve talked about the importance of owning U.S. blue chip companies that do business overseas. These stocks help you benefit from profits denominated in stronger international currencies.
Cullen spoke a lot about commodities and how they can help protect the true value of your investments. In particular, precious metals and industrial metal miners are likely to do very well and grow your wealth.
But there’s one problem that I’ve been thinking about since Cullen’s presentation.
You still need cash to pay for your life expenses. So how do you protect your wealth from declining U.S. dollars, while still keeping some dollars available for day-to-day spending?
And then it hit me…
Our instant income strategy really solves both of these problems at once!
A Cash-Generating Strategy That Protects Your Wealth
Cullen was warning us to not keep cash sitting idly in our accounts as it lost value.
But if you are able to use your cash in a way that grows your wealth over time, that’s an entirely different story. And that’s exactly how one of my favorite income strategies works.
The strategy that I’m talking about is what I teach in my Income on Demand investment service.
I’ve shown readers how to use this method to pull cash instantly out of the stock market by entering a very simple transaction. The cash can then be used to pay for regular life expenses. Or you can use the cash to buy commodities or other investments that will help protect the value of your retirement.
It’s really a win-win scenario because it gives you currency that you can spend, but it doesn’t tie up too much of your net worth in cash that is falling in value. So this perpetual income strategy actually falls right in line with what Cullen Roche was warning us about.
The best part of this strategy is that it is easy to use in just about any brokerage account. And the cash you generate is instant — no waiting around for dividend checks or for shares to trade higher. It’s such an easy and quick way to generate cash, I’ve taught people on the street how to do this in just a few minutes.
In fact, the transaction is so easy, even kids can do it — as you can see here.
So today, I encourage you to think carefully about protecting the wealth you’ve worked so hard to build. Don’t invest in risky speculative stocks that are popular but could drop quickly. And don’t sit on cash that is falling in value.
Instead, be purposeful about your wealth and use some of the strategies we’ve covered to protect your wealth from this challenging environment.
Here’s to growing and protecting your wealth!