You’ve probably never heard about Ronald Read. But you likely want to be like him.

He served in the United States Army, raised two children with his wife, worked a 40-year-plus career…

And retired with a multimillion-dollar fortune.

Isn’t that what we all want? To put ourselves in a position of financial security?

Yet, he wasn’t a doctor or lawyer. He wasn’t an entrepreneur. He wasn’t some high-flying businessman. He didn’t hold any of the jobs you’d expect to amass a big fortune.

No. Ronald Read spent his career as a gas station attendant and part-time janitor at JCPenney.

So how did he do it?

Well, Ronald Read did two things right.

First, he lived within his means. Second, he invested in income-producing stocks.

Little by little he acquired shares of companies like J.M. Smucker, CVS Health, and Johnson & Johnson.

Each of those companies paid him income via dividends. And he took that income and bought more shares.

Over time, Read’s wealth grew. And it enabled him to live his best life.

He spent many years working part-time because he enjoyed the job.

He worked on his stamp and coin collections.

He financed his stepchildren’s college education.

And he volunteered at the local hospital and library.

Income-producing stocks gave Ronald Read financial freedom. And he used the money to live life the way he wanted.

By the time he passed away in 2014, Read had amassed a fortune of $8 million.

And true to his style, he did what he wanted with his money even after his passing. He donated $1.2 million to his local library, $4.8 million went to the hospital, and left $2 million to his family.

Now, buying income-producing stocks is one way to build a fortune.

But it doesn’t need to be stocks. You can apply the same concept to other assets.

In fact, I’ve found a strategy that works even better than dividend investing…

The Secret of Ronald’s Success

The secret to Ronald Read’s success lies in the compounding effect of reinvesting his dividend income.

Think about a snowball rolling down a hill. With each turn the snowball picks up more snow. And by the time it reaches the bottom, it’s huge.

Ronald Read snowballed his way to a retirement fortune.

Each dividend he received and reinvested was like another turn of the snowball. It produced more income the way the snowball picks up more snow.

You can see the effects in the chart below.

It shows three scenarios for a $10,000 invested into a stock over 30 years.

  • In scenario No.1, the stock appreciates at 5% per year.
  • In scenario No. 2, the stock appreciates at 5% per year and yields 5% on the original investment every year, received in cash.
  • In scenario No. 3, the stock appreciates 5% per year, and the 5% it yields is reinvested.

As you can from the chart below, scenario No. 3 is the way to build wealth. You end up with 4x more than scenario No. 1, and 3x more than scenario No. 2.

chart

The best part is dividend investing isn’t the only way to take advantage of compounding.

You could, for example, buy rental properties. Then use those rental proceeds to buy more rental properties. And snowball your way to a real estate fortune.

But I’ve found what I think is the next frontier of income investing… cryptocurrencies.

Introducing “Exponential” Dividends

You see, many crypto projects pay out rewards. And by placing a stake in one of these projects, you can set yourself up for a steady stream of income. Just like a dividend.

We call this opportunity Tech Royalties… a whole new way to collect income on new technology.

In fact, while interest rates reach record lows and many companies cut their dividends, our “Tech Royalties” continue to average a yield of 9.7%. That’s nearly 551% higher than the current yield on the S&P 500.

But Tech Royalties have an even more exciting feature… We call it the “exponential” dividend.

You see, crypto rewards are paid in more crypto. That’s different from stock dividends, which are generally paid in cash.

That means crypto rewards appreciate at the same rate as the tokens themselves.

Take one of our portfolio picks for example. When we first took a position in this token, it had a reward rate of roughly 7% annually.

But now the token is up over 600%. And we continue to collect reward at the higher token price.

That means our effective yield – the yield on our original cost – is now 41%.

At that rate you could recoup your entire investment in less than three years.

And the best part is we expect this project to grow multiples from here. So, we could have even bigger yields in the future.

And it’s super easy.

You only need three simple things… a computer… a few hundred dollars to invest… and about 10 minutes to get started.

And investing in just a handful of the best Tech Royalties – before they go mainstream – could be all you need to collect substantial income… for years to come.

Just like Ronald Read.

Regards,

Greg Wilson
Analyst, Palm Beach Daily