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The perception is wrong.
Mention “millionaire” to someone and the image conjured is that of opulence: Bentleys, the French Riviera, Swiss chateaus, uniformed servants, Michelin-star restaurants, bespoken wardrobes. The millionaire is all show without much to tell.
We have our Kardashians and our Russian oligarchs, but they’re the rare exception. The reality is far removed from the perception. The reality is considerably more pedestrian. Millionaires are a conservative, frugal lot. They continually strive for value. They prefer Fords over Ferraris, the Gap over Gucci.
Real millionaires know wealth is accumulated by investing, not spending. They seek the same value when they invest as when they consume. Whenever possible, real millionaire investors refuse to pay retail.
Because most real millionaires are conservative millionaires, they favor income investments and broad diversification when they invest. Many of you favor the same: you value income and the risk-reducing benefits of diversification.
But unlike real millionaires, you likely seek income and diversification in mutual funds and ETFs. I assert that because mutual funds number over 9,500 and hold over $16 trillion in assets; ETFs number over 1,500 and hold over $2 trillion in assets.
I understand the attraction: Mutual funds and ETFs offer diversification benefits. Regular quarterly and monthly dividends or distributions are found in both spheres as well.
Mutual funds and ETFs are good, though imperfect, investments. They guarantee you will pay retail, something real millionaires frown upon.
Millionaire Income Machines
Fortunately, for you and me, alternatives to mutual funds and ETFs exist. We call them “millionaire income machines.”
MIMs offer similar benefits of mutual funds and ETFs. You can buy a diversified portfolio of assets. You can buy the same investing strategies offered by mutual funds and ETFs. Nevertheless, few investors know of Millionaire Income Machines. They attract only 2% of fund investors.
But MIMs offer advantages that mutual funds and ETFs offer.
MIMs, unlike mutual funds, trade on a stock exchange. You can buy and sell throughout the day. Trading occurs among investors. MIMs are unlike ETFs because MIMs can use leverage to magnify returns.
Just as important from an income-investor’s perspective, MIMs are built to pay shareholders because they’re built to pay no federal income tax.
To maintain their tax-privileged status, MIMs must pay investors at least 90% of their net income from dividends and interest and at least 98% of their net-realized capital gains. MIM distributions yields are high: yields two, three, even five times that of the S&P 500 (which yields 2%) are readily available. Distribution yields of 10% are within the ordinary.
Buy at 30% Discount
The ability to buy MIMs at a discount distances them to the horizon from mutual funds and ETFs. Discounts of up 30% are readily available: pay $0.70, buy a dollar’s worth of assets. This advantage draws millionaire attention.
The unique distinction ̶ to trade at a discount to the underlying assets ̶ offers a unique opportunity to profit from MIMs that no other fund investment offers, yet this unique opportunity is exploited by few investors.
Here’s your chance to exploit. If you want to learn what income investments real millionaires buy and how they buy them at discounts of up to 30% of market value, then join me at an exclusive live webinar on Tuesday, June 13.