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These 3 Investing Rules Can Make You Filthy Rich

By Costas Bocelli August 23, 2018 Facebook Logo Twitter Logo Email Logo LinkedIn Logo

Here’s a chilling statistic…

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Nearly half of all Americans die broke!

Hard to believe, but it’s the stone cold truth, according to a study by the National Bureau of Economic Research.

In another recent study, 69% of adults admitted to having less than $1,000 in the bank while 34% said they actually have no savings at all.

These are indeed sobering statistics.

What’s even more startling is if you’ve just realized that you too may be heading down a similar path.

But here’s some encouraging news…

You don’t have to wind up broke or find yourself struggling in retirement.

In fact, if you simply follow these three simple investing rules, you’ll be well on your way to securing financial independence.

  • Build Your Savings Now

If you’re not setting money aside for retirement, then you need to start right now!

The reality is that most folks have regular bills to pay.  Believe me, I get that.

A mortgage, car payment, utility bill, student loan payment, health insurance—all of these are routine monthly obligations that most of us routinely pay.

But here’s the thing…

You need to make room for one more bill, a very special bill.

But this one is written out to you.

And just like paying the electric company, it needs to be paid every month.

Whatever it takes, you need to have a mindset of incorporating this bill with all the rest of your monthly obligations.

And if it’s a struggle, then start small, any amount will do at first.

The point is to just get the process started right away.

The goal is to try and get that monthly bill, the one that you are writing to yourself, up to $450 per month or about $5,500 annually.

If you can do that, then believe me when I tell you that you’re well on your way to a million dollar retirement.

  • Open up a Tax Advantaged Retirement Account

It’s fast.  It’s easy.  And… it’s free!

Whether you visit a local community bank or set it up using an online broker, you need to open an Individual Retirement Account (IRA).

An IRA is a type of savings account that is designed to help you build wealth and offers many tax advantages.

Currently, you can contribute up to $5,500 ($6,500 age 50 or older) per tax year into an IRA.  In many instances the contributions are tax deductible.

But with the recent passage of the Tax Cuts and Jobs Act of 2017, there are now tax deductible limitations based on tax filing status and adjusted gross income.

It’s always best to consult a tax attorney or accountant to discuss your personal tax situation.

Nevertheless, an IRA offers another major benefit which is that all capital gains are tax deferred until you take distributions.  Even if you sell securities and invest the proceeds into other investments within the IRA, all the gains are deferred.

Under current tax law, the distributions are taxed as ordinary income.

If you’ve taken the first two steps, then you’re well on your way to securing financial independence.

But now comes probably the most important investing rule of the three.

This rule is so important that it can mean the difference between a comfortable retirement and a lavish retirement.

In other words, if you can follow this third rule with discipline, it could provide an enormous boost to your nest egg.

  • Relative Strength Investing : A Key Wealth Building Factor

We’re setting aside money to invest on a monthly basis--Check.

We’ve opened up a tax deferred retirement account and are making the periodic contributions—Check.

But what securities should we be investing in?

That’s a very important question, wouldn’t you say?

Investing decisions are so important that it could literally mean the difference of hundreds of thousands of dollars or even millions in retirement savings.

You see, one of the most powerful forces to building wealth is compounding gains over time.  The earlier you start and the higher the returns you can generate will ultimately dictate the size of your nest egg.

And at True Market Insiders, we found that by focusing on the strongest sectors and securities within those sectors that meet certain relative strength criteria lead to generating superior performance over time.

Think of relative strength as momentum investing.

You see, if you can identify securities that possess high levels of relative strength, the odds increase that they will continue to outperform.

These are the types of investments that can help you achieve or exceed your investment goals and at a quicker pace.

Simply by avoiding the weaker segments of the market and focusing on the stronger segments can have a profound impact.

Since 1929, the Wilshire 5000, the broadest stock market index has generated a 9.5% annual return.  But if you would have stripped out the weaker segments and invested in the stronger segments, you would have generated a 14.1% return.

And because of the power of compounding, the extra returns generated by the relative strength approach over time increased the value of the portfolio 66 times over!

That’s what is possible when you combine compounding with Relative Strength investing.

Imagine that the stock market universe is one gigantic pizza pie that can be split into 45 tiny slices.  That is essentially how we view the stock market, by approaching it on a more granular level.

This top-down analysis is part of the process to uncovering some of the most attractive and best performing investment opportunities.

In fact, it's the exact same approach I take in my paid trading service, Profit Skimmer.

I start with the state of the market... then I identify the strongest sectors...

And finally I boil the whole thing down into a handful of (nearly) "sure things."

In the past 30 days I've closed five trades for my readers. Four hit the bullseye and brought in gains of 119%... 75%... 111%... and 137%.

The average gain of those winners was 110.5% -- over a thirty day period!

I mention all this because...

Today is the two-year anniversary of Profit Skimmer!

And I'm celebrating by letting in a limited number of new members on very attractive terms.

If you'd like to try the service risk-free for two months, go here.

Now that you’re a regular reader of True Market Insider, you’ll have the opportunity to learn more about our investing approach and discover how you can identify the strongest and weakest segments of the market.

So the choice is yours.

Become dead broke and suffer the fate of nearly half of all Americans...

Or, take control of your future and become filthy rich.

At True Market Insiders, we choose filthy!

Until next week,

Costas

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