The Tycoon Report

More Bang for Your Buck: Triple Your Money Safely ...

Wow. What a difference a week makes!! The last time that I wrote to you, just over a week ago, I was talking about interest rates and how the Federal Reserve implements monetary policy.

Since then we’ve sent some people into space, and a psychopath with a napoleon complex in North Korea has been firing missiles like a child with a water gun. Don’t we live in a crazy world?

I hope I haven’t offended any of our North Korean readers. Oh, I forgot … they aren’t allowed to read the almighty Tycoon Report over there. Unfortunately, freedom is a road that is seldom traveled by the multitude.

Anyway, down to business ...

The goal of any investor is – or should be – to make as much money as possible, with the least amount of risk. This is criterion numero uno when a recommendation is issued from yours truly.

The marketplace is constantly changing, so we have to as well. Since I have been writing for The Tycoon Report, I have recommended to you bonds, stocks, options, and exchange traded funds, both foreign and domestic. I try to supply useful ideas within every asset class for all of our readers.

The recommendation that I come with today is directed towards those of you who are interested in growth and income. Let me make this clear: this is an investment, and not just a trade. In other words, this is a long term hold, and is for those who want quality and are primarily concerned about the future and not just today.

I’m talking about an exchange traded fund called the “iShares Dow Jones Select Dividend Index Fund.” This ETF trades on the NYSE under the symbol DVY. When you read this, the price should be between $63-$64 dollars per share.

This ETF is like owning a piece of each of the 100 highest dividend-yielding securities in the Dow Jones U.S. total market index. In other words, not only will you gain from the appreciation of the underlying securities, but you are also being paid a hefty yield for your patience.

This is something that everyone should own. Obviously, the amount you should own, as always, depends on your own unique set of circumstances.

If that isn’t exciting enough for you, just think about the fact that $10,000 invested in this index 10 years ago would be worth almost $40,000 today!! I know it’s not the two-week hold that could double or triple, but it’s also not one that could just as likely go to zero and cause you a lot of stress. When it’s time to pay for your children’s college education, which decision do you think you may regret?

I wanted to remind our readers again to make sure that you are diversified among all of the asset classes. As mentioned before, how much of each asset class you own is based on your own unique situation (e.g. age, risk tolerance, income, net worth, etc.).

Here are the asset classes:

1.    Money market assets (cash equivalents).

2.    Fixed-income securities (primarily bonds).

3.    Stocks.

4.    Non-U.S. stocks and bonds.

5.    Real estate.

6.    Precious metals and other commodities.