Chris’ note: Regular readers know we’re longtime bitcoin bulls here at the Cut. Bitcoin is up 880% since its low last March. And as I’ve been hammering on in these pages, its surge is only getting started.
But colleague and world-renowned crypto investing expert Teeka Tiwari says the best opportunities in crypto today lie outside of bitcoin. And one of the best ways to build yourself a fortune is in something Teeka calls “Tech Royalties.”
So today, you’ll hear from Teeka’s chief crypto analyst, Greg Wilson. He explains what “Tech Royalties” are… and how you can use them to “snowball” your way to financial freedom. Be sure to read to the end to learn more about how to profit from “Tech Royalties” from Teeka himself.
You’ve probably never heard of Ronald Read. But when you hear his story… you’ll want to invest like him.
He served in the United States Army, raised two children with his wife, and worked for more than 40 years as a janitor and a gas station attendant.
But despite his modest earnings, he retired with a multimillion-dollar fortune.
How did he do it?
He invested in income-producing stocks.
Little by little, he bought shares in J.M. Smucker (SJM), CVS Health (CVS), and Johnson & Johnson (JNJ).
Each paid him income by way of dividends. That’s when a company pays out some of its cash to shareholders.
Read then took that income and bought more shares.
Over time, his wealth grew. And it allowed him to live his best life.
He collected stamps and coins… He financed his stepchildren’s college education… He volunteered at the local hospital and library.
Income-producing stocks gave him financial freedom.
By the time he passed away, in 2014, he had amassed a fortune of $8 million.
And he did what he wanted with his money even after his passing. He donated $1.2 million to his library, gave $4.8 million to the hospital, and left $2 million to his family.
Now, buying income-producing stocks like Read did is one way to build a fortune.
But stocks aren’t the only way. As I’ll show you today, you can apply the same concept to other assets.
And I’ve found a strategy that works even better than dividend investing…
The key to Read’s success is the compounding effect of reinvesting dividend income.
Think about a snowball rolling down a hill. With each turn, it picks up more snow. By the time it reaches the bottom, the snowball is huge.
Read snowballed his way to a retirement fortune.
Each dividend payment he reinvested was another turn of the snowball. It produced more income with each reinvestment.
You can see the effects in the chart below.
It shows three outcomes for investing $10,000 in a stock over 30 years…
Scenario No.1: The stock goes up 5% a year and pays no income.
Scenario No. 2: The stock goes up 5% a year and has an annual dividend yield of 5% on the original investment that’s paid in cash.
Scenario No. 3: The stock goes up 5% a year and has an annual dividend yield of 5%, which is reinvested.
As you can see, scenario No. 3 is the best way to build your wealth. You end up with 4x more than in scenario No. 1, and 3x more than in scenario No. 2.
And dividend investing isn’t the only way to take advantage of compounding.
You could also buy rental properties. Then use your rental income 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.
Many crypto projects pay out rewards. By placing a stake in one of these projects and performing a few extra steps, you can set yourself up for a steady stream of income. Just like with stock dividends.
Teeka and I call this opportunity “Tech Royalties.” They’re a new way to collect income on new technology.
The “Tech Royalties” we recommend have an average yield of 9.7%. That’s nearly 6x the average dividend yield of an S&P 500 stock.
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 your rewards appreciate at the same rate as the cryptocurrencies you’re paid in.
Take one of our portfolio picks at Palm Beach Crypto Income, Tezos (XTZ). When we first recommended this token, it had a reward rate – AKA crypto income payout – of about 7% a year.
But now the token is up over 796%. And we continue to collect rewards at the higher token price. (Tezos is currently above our buy-up-to price, so it’s not an active recommendation.)
That means our effective yield – the yield on our original cost – is 43.5%.
At that rate, you could recoup your entire investment in less than three years – from just the income stream.
The best part is we expect this project to grow multiples from here. So we could have even bigger yields in the future.
It’s easier than you think to get set up.
All you need are a computer… a few hundred dollars to invest… and about 10 minutes of your time.
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.
That’s why I encourage you to check out Palm Beach Daily editor Teeka Tiwari’s first-ever “Tech Royalty” Summit on Wednesday, February 24 at 8 p.m. ET. During this free event, Teeka will show you exactly what “Tech Royalties” are… how they work… and which ones to avoid.
Plus, he’ll share the details on a highly anticipated IPO happening this year that could thrust “Tech Royalties” into the mainstream. And as a bonus for attending the summit, he’ll give you the name and ticker of his No. 1 long-term “Tech Royalty” just for watching.
So if you’re looking to generate income, I urge you to attend Teeka’s event. You can reserve your spot right here. You don’t want to miss it.
Analyst, Palm Beach Daily