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The Secret Equation for Doubling Retirement Income

The Secret Equation for Doubling Retirement Income by Jimmy Mengel – Outsider Club

I think it’s safe to say we’re all familiar with the 7 Wonders of the World…

These were man-made structures so magnificent that their existence has been documented and passed along through mythology over thousands of years.

Perhaps the most famous is the Great Egyptian Pyramid at Giza, a structure so impressive that it held the record for tallest manmade structure for an astounding 4,000 years. This 6 million-ton mausoleum is so immense that — on a clear day — it can even be seen from space.

Another magnificent monument was the Statue of Zeus at Olympia, which loomed god-like over ancient Greece. The 40-foot statue was plated with gold, and rested on a throne adorned with every kind of precious stone you could imagine.

Perhaps most mysterious of the Seven Wonders are the Hanging Gardens of Babylon — the very existence of which is debated. It’s been written that King Nebuchadnezzar II constructed the resplendent gardens to honor his queen.

gardens of babylon

Despite its location in the deserts of modern-day Iraq, the gardens were said to have bloomed with gorgeous trees and flowers of every kind, enveloping the city through a series of columns, aqueducts, and irrigation canals.

As Philo of Byzantium wrote: “Exuberant and fit for a king is the ingenuity… most of all because the cultivator’s hard work is hanging over the heads of the spectators.”

In essence, it was a sign of the King’s power and wealth. You see, what all of these creations have in common is that they were erected to show off the wealth and power of these ancient rulers.

But I’m not here to give you an archeology lesson. I’m here to make you some money. That’s why I want to introduce you to the one wonder of the world that is alive and well — available for anyone anywhere to enjoy.

But most people haven’t heard of it…

I’m talking about the 8th Wonder of the World, as described by none other than Albert Einstein himself…

Einstein was quoted as saying that:

“Compound interest is the eighth wonder of the world. He who understands it, earns it…He who doesn’t, pays it.”

So what exactly is compound interest?

Behold, the eighth wonder of the world, in all its glory:

compound interest

S = value after t periods
P = principal amount (initial investment)
j = annual nominal interest rate (not reflecting the compounding)
m = number of times the interest is compounded per year
t = number of years the money is borrowed for

That’s how Einstein would have written it. Now, I’ll be the first to tell you that I’m no Albert Einstein, and I like my math problems in easy-to-follow, real-world examples. So if you aren’t familiar with compound interest there is an easy way to quantify it so that anyone can understand it. It’s called the rule of 72.

The rule of 72 says that in order to find the number of years it takes to double your investment at a given rate, just divide the yield into 72.

For example, if you are earning a 9% dividend on your investment, it only takes eight years to double your money. . . and roughly 13 years to triple it.

This compounding effect arises when dividend yield is added to the principal, so that from that moment on, the interest begins to earn interest on itself.

Over time, that process can add up to a small fortune — even with very modest investments.

But I have a method that can double even those incredible returns…

You can buy the exact same stocks, yet get twice the returns. You just need to know where to buy themAnd I’ll give you a hint — it’s not through your broker…

Let’s look at a real-life example of regular — dare I say boring — compound interest in action, and then let’s look at it when you buy the stock my way.

Say you saved $10,000 and invested it in one of my favorite dividend payers, HCP, Inc. (NYSE: HCP).

HCP is a real estate company focused on the health care industry.

Now let’s be clear here — this multinational corporation is a leader in its field: It’s well-diversified, has great management, and deserves its spot on the S&P 500.

And that’s why if you had put $10,000 into this company a while back…

tcn-underground-hcp1

You’d be sitting on a small, tidy fortune of $42,267 today. That’s a four-bagger!

Those are solid returns. Any investor would be happy with those results.

That’s not bad for a day’s work calling up your broker.

But let’s say you didn’t call your “regular broker” on that day.

Let’s say you decided to purchase those exact same shares on what I call the “Underground Stock Market.”

You fill out a short form, send it in, and get the same 673 shares.

Then, this happens…

tcn-underground-hcp2

Instead of quadrupling your money — you’d have nearly 8X’d your money instead.

That’s a grand total of turning every $10,000 invested into $78,680.21.

Let’s be frank here, getting 687% returns is much nicer than 323%.

Put another way…

That’s practically doubling your returns for making the exact same investment in the exact same stockusing the exact same amount of money.

My question to you would be: why in the world wouldn’t you buy stocks this way?

Remember, this is something you cannot do with regular dividends if you buy the stock via the “regular” stock market.

You can only get these “dividend multipliers” when you operate in the “Underground Stock Market.”

Today, over 579 stocks now trade on the “Underground Stock Market.”

It’s a place where you can buy stocks at a discount, get higher returns, and pay little to zero in brokerage fees. Investing “off-market” can pay you up to 229% higher returns on the exact same stocks you’d buy on the NYSE or NASDAQ.

And this isn’t options, Forex, OTCs, or anything weird like that. These are regular stocks… but bought “underground.”

I’ve put together a package of resources for you to put to use immediately, including a report on the top five stocks you can buy on the “Underground Stock Market” today.

I’ll send it to you for free. Just tell me where to send it.

If you play it right, then come retirement time, it will provide you with all the wealth you need to travel the world, and the free time to visit all of the other wonders that await…

Godspeed,
jimmy-mengel-signature-fixed

Jimmy Mengel

Source – Outsider Club

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By Outsider Club

Jimmy is a managing editor for Outsider Club and the Investment Director of the personal finance advisory The Crow's Nest. You may also know him as the architect behind the wildly popular finance and investing website Wealth Wire, where he's brought readers the stories behind the mainstream financial news each and every day. For more on Jimmy, check out his editor's page.