Opening our “Family Economy” — Plus, Your Questions Answered
Today is the day we’ve been waiting for!
Well… sort of…
My 17-year-old daughter is very excited because as of midnight last night, our governor here in Georgia has lifted the “shelter in place” guideline for healthy residents.
This morning, I woke up to no less than 6 text messages from Morgan with links to overnight research she’s been doing. Her hope is that she’ll be able to see her boyfriend in person this weekend.
As a dad, it’s tough to figure out the best answer.
I want her to be able to spend time with friends and enjoy the rest of her senior year in high school. But I also want to protect the rest of our family from being exposed to COVID-19.
I’m planning a conversation with Morgan and her boyfriend this afternoon. And frankly it’s going to be hard to find the best plan for our family.
That’s the challenge on a family level. I can’t imagine the pressure of trying to make this decision for an entire city — or country for that matter!
As we work towards figuring out what “normal life” will look like for our country going forward, it’s going to be easy for many of us to find things we disagree with on one side or another.
Some of us will be in favor of moving more quickly to protect jobs and people’s livelihood. Others will want our country to have more caution to protect people’s health and safety.
And both of these priorities are important!
As we move forward, let’s all try to have a bit more understanding and grace for people with different perspectives than our own. That way, we can have a constructive debate about how our communities should progress — instead of an unproductive argument.
On that note, I’d love to hear from you!
Would you share your perspective — or your experience — with these first attempts to start opening our economy? You can email me at EdgeFeedback@StPaulResearch.com.
In the meantime, let’s get to some of the other questions and feedback you guys sent in this week.
Do I Need to Specify a REIT?
We’ve been talking more about Real Estate Investment Trusts (or REITs) and how they can be a great tool for generating income.
Michael O. asks:
When I purchase shares of one of your recommendations, do I need to specify that I wish to purchase the REIT as opposed to just shares of that particular stock? Is there a difference here, or is a purchase of company that you suggest to buy a REIT from only a REIT and not also stock options?
Good question Michael!
The way REITs are set up affects the entire company. So if a company is organized as a REIT, that’s your only option as an investor. You don’t need to specify a specific type of investment in that company.
As income investors, we love REITs because of the way these companies treat their investors.
REITs are not required to pay income tax, which leaves them with more profit from operations. And as a tradeoff for not paying these taxes, REITs are required to pay 90% of their operating earnings to shareholders — that’s us!
So investing in a REIT gives you ownership of a company that generates more cash flow, and gives more of that cash flow to you!
In today’s market, my favorite REITs are the 5G Cash plays… the companies that rent cell phone towers to 5G carriers. Tis has turned out to be a lucrative business and one that will grow tremendously over the next couple of years.
“Where Can I Find Your Information on 5G Investments?”
A few of you have written in about our new 5G Cash Command Center — which is a special website my team and I designed to track this exciting area of our economy.
If you’re a subscriber to my Lifetime Income Report newsletter, you have full access to this 5G Cash Command Center.
A couple weeks ago, I put together a “tour” of our 5G Cash Command Center to explain exactly how to access and use all of the 5G information we’ve put together. (And much of this information is dynamic and continues to expand).
Again, this is part of your Lifetime Income Report subscription. And it’s a great resource to help you boost your income in a time when many other areas of the economy are uncertain.
If you’re a member of Lifetime Income Report, you can learn more about our 5G Cash Command Center with the link above. (You may be asked to log in with your personal credentials).
If you’re not a member of our Lifetime Income Report, I have to ask you… WHY NOT?
I’d love for you to join us and start collecting income from the many different areas of the market — and even many income areas that have nothing to do with the market!
What’s the Risk for Cruise Lines?
Your fellow reader John M. wrote in with a sobering question about cruise line companies…
Considering the huge number of ships that are sitting idle and costing a lot for maintenance and upkeep, what do you think about the potential for bankruptcy of one or more of the cruise lines such as Royal Caribbean.
John, I definitely share your concern. And while I don’t think I can put a number on the actual percentage probability that a major cruise company goes bankrupt, there is certainly a lot of risk in this industry.
That’s exactly what I was talking about in yesterday’s article when I wrote to you about not being “too clever” with this market.
There are so many great places to invest for income right now. So I would avoid putting your hard-earned wealth into more risky plays like cruise lines.
What’s the Best Way to Buy Silver?
Speaking of great places to invest, here’s a quick one from Eugene F.
What’s the best way to invest in silver?
I think silver is a great way to profit from a rise in precious metals.
With the government shelling out trillions to support and stimulate the economy, precious metals like gold and silver offer a great way to protect the true value of your wealth.
Plus, silver has many industrial uses including alternative energy, technology, and even medical applications. So there’s natural demand for silver from the economy — on top of the precious metal qualities.
If you’re interested in trading silver, I recommend buying shares of the iShares Silver Trust (SLV). You can trade shares of SLV in your brokerage account just like a stock. So it’s easy to make short-term or even long-term bets on the price of silver with this play.
On the other hand, if you want to own physical silver, I would recommend opening an account with Hard Assets Alliance.
This company specializes in helping investors buy and sell physical precious metals. And they can also help with storage of your gold or silver purchases — or ship the metals that you buy directly to your home.
To learn more about Hard Assets Alliance, you can simply click on the link.
I want to make sure you know my company has a financial relationship with HAA. We’ve partnered with them to help our readers protect their wealth during times like this. And in the interest of full disclosure, I wanted to make sure you were aware of that financial arrangement.
“We’re Hanging in There…”
Many of you have written in to let me know that you and your family are doing well. Here’s just one example from Lee H.
Hi Zach, thanks for thinking about your subscribers. I would like to let you know that my family and I are doing well. We have been trying to weather the storm as far as the financial market is concerned. I am confident that with your recommendations and an upturn in the market I will be able to recover and may be increase my portfolio.
Thanks again, for all your concern and recommendations so far this year. My family and I appreciate it very much!
Great to hear, Lee. We’re all going to get through this together! I have no doubt that our financial markets will continue to give us opportunities to grow our income and protect our wealth.
And thanks to all of our other income family members who have written in to let me know what you’re up to, and to check in on my family. It warms my heart to know what a great community we have here at The Daily Edge.
I hope you have a wonderful weekend and I look forward to discussing more ways to grow and protect your wealth next week.
Have a great weekend!
Here’s to growing and protecting your wealth!