“U.S. 801K Plans — double the returns from 401Ks!”

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There’s a new teaser going around from a Stansberry newsletter, this time it’s from the 12% Letter by Tom Dyson, and it’s teasing us about a secret retirement plan they call the 801K. They’ve got a special report to send you called How to build a $1,000,000 Retirement with “U.S. 801(k) Plans” … and all you need to do to find out what these 801K plans are is to try a subscription for $99.

So there are two parts to this tease, the way I see it — there’s the actual “801K” concept, and then there are eight individual companies that provide these plans, which Dyson thinks are the best ones to buy.

First, the idea of the 801K:

“These companies encouraged the direct investment by paying out unusually high dividends and designed programs that automatically reinvested the profits. This ensured that ordinary Americans like you and me could start out small, with as little as $25, and quickly accumulate thousands of dollars in savings, without ever investing another penny.”

“But don’t ask your broker or financial advisor about “U.S. 801(k) Plans.” They will try to push you instead into a mutual fund that returns, at best, 10% a year. Remember, brokers can’t collect big fees and commissions with “U.S. 801(k) Plans” because you buy shares directly from the company.”

“Perhaps this is why the government restricts the advertisements of these opportunities. If they didn’t, some brokers might actually go out of business! Like I said, you’re not likely to hear about “U.S. 801(k) Plans” any place else.”

So, you may have figured this out on your own, but 801K plans are simply Dividend Reinvestment Programs (DRIPs). This is a program whereby companies — usually big, stable ones — sell stock directly to shareholders with an agreement for a regular ongoing investment and the reinvestment of all dividends. You invest a set amount, usually every month, not unlike with a mutual fund investment program, and the share price doesn’t matter because they’ll issue partial shares.

Some companies charge a fee for this, some do not, and some even offer a discount for purchase via reinvested dividends … but it is indeed a direct relationship with the company that doesn’t involve a traditional stockbroker. Services like Sharebuilder.com also do this, so you can initiated a DRIP plan even for companies that don’t offer them directly, but they charge either a small commission or a monthly fee.

There is plenty of good basic info on DRIPs out there — including from the Moneypaper, the Motley Fool and others. Most companies require you to be an owner of at least one share listed in your name already, some don’t or will help you to get that share, or there are some “single share” services that will help you to easily buy and get a certificate for a single share. This “single share” business is probably the biggest impediment to DRIP adoption, aside from the fact that you have to have separate plans set up with each company unless you want to join a club or pay for a service that does it for you (and really, it looks like fees for that negate much of the advantage of the DRIP for many stocks).

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But several “801K” companies were teased in this email, too — what are they? More than half of the S&P 500 offer these plans, as do many other companies, so I’m not certain that the clues given here will be enough to smoke out the company names … but we’ll try. Here’s what I know about the first two, I’ll try to get to the other six shortly:

“U.S. 801(k) Plan” Company #1 – This company is a fast-growing restaurant chain. It’s been in business for more than 30 years and operates in more than 20 different countries (and counting). In fact, it’s raised dividends every year but one since 1976, which are rising at more than 30% per year – almost twice as fast as the stock price.”

I thought this might be Wendy’s (WEN), but it hasn’t quite raised dividends every year. The 20+ countries, “more than 30 years” history and the DRIP plan and the rate of increase in share price could, arguably, fit.

Brinker (EAT) also fits in some areas — they’re in about 23 countries, but haven’t payed a consistent or rising dividend. Most of the other big restaurant chains are either way too big (even Burger King is in 65+ countries), completely North America-based (only a couple foreign locations), or don’t pay dividends, or, and this cuts most of them out, haven’t been around for 30 years.

But, strange as it seems, I’m pretty certain that this one is actually McDonald’s (MCD)

I know Tom Dyson likes McDonald’s as an income play — he previously teased the stock as The World’s #1 Dividend Machine — so I imagine he was being sneaky, it could well be that McDonald’s actually operates restaurants in more than 20 countries, since most of their restaurants (70%+ internationally) are actually franchisor-operated. The other stuff — company history, dividend history, all matches well. It was at the nadir for this company, in 2002, that they cut their dividend for the first time since 1976, and it has since grown significantly, including a $1 dividend back in November. The DRIP info for McDonald’s is here.

“U.S. 801(k) Plan” Company#2 – This New Mexico-based banking company holds $42.5 billion in high quality assets and has delivered consistent dividend income every year for the past 14 years. It currently pays a 10.10% dividend.”

This one is definitely Thornburg Mortgage (TMA) — DRIP plan info here.

Thornburg is a mortgage REIT that specializes in Jumbo adjustable rate mortgages — the theory is that because they’re dealing with big mortgages, the rich people that owe them money are less likely to default than are subprime borrowers. I don’t know whether or not that’s true, but pretty much all the mortgage-related companies are being tarred by the same brush right now, so if you think TMA stands out as better than its compatriots now might be a fine time to look into it.

One nice thing about TMA is that, because they focus on adjustable rate mortgages, they should theoretically be less susceptible to interest rate risk — assuming, of course, that their spread doesn’t go negative, which is always possible in a world where the yield curve can invert (they borrow money, then lend it in the form of mortgages, and they need their ARMs to pay off more than they have to spend to continue borrowing the money).

So … those are the first two candidates for your 801K plan in case you’re interested in DRIP investing. I’ll try to cover the other six as soon as I can … or you can beat me to the punch and tell us all the sleuthed solutions to these over in the Gumshoe Forum.

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This writeup is a bit old, you can find an updated look at the 801k ads here.


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60 Responses to “U.S. 801K Plans — double the returns from 401Ks!”

  1. Regular brokers also let you participate in DRIPs (I know Schwab and ETrade do). The dividend reinvestments are fee- and commission-free, but you have to pay for your initial purchase and sale. In this respect, they’re probably not for the monthly contributor, but if you can set up a decent initial position AND want to build shares through the DRIP, check out your current broker.


  2. Here are all the DRIPs companies recommended in the 12% Letter:


  3. There’s been a lot of insider buying on TMA including a 2 million dollar purchase by the CEO.


  4. Thanks for submitting the other DRIP company tickers, saves me a few minutes.

    And I note that tons of companies in the real estate finance sector have huge insider buying recently … maybe they see a bottom here that other folks aren’t catching (or maybe they’re wrong). CHC and RAS, which I just sleuthed out today, both have a pattern of insider buying recently too. Wonder what will happen with these.


  5. True, the “801k Plans” hype may be only DRIPs (i suspected so before I ran across this site) but the trick is which of the hundreds(?)are the best i.e., get you to the wealthy status the fastest and safest way. If his choices are only 80% correct, its worth the 99 bucks for those who dont/wont do extra research.


  6. Quote “If someone is paying the money to host a site, pay for Search Engines to ‘Find’ it and to process the resulting enquires from advertising something, they will be the ones making the money”

    The examples quoted are not necessarily brokered through this company. The concept could make individuals money although over a longer term than is given the impression of.


  7. I was thinking of paying the 99 bucks. He says if you don’t like it he’ll do a pro-rated refund so what the heck!


  8. First of all, I want to really thank ‘one guy’ for creating this post and beginning to clear this up a little. All of my coworkers (and my retired father who is in Canada who – I kid you not – forwarded me this email) and everyone was discussing this spam at my place of work trying to figure out whether this was a scam or not!

    Thank you for the links also to the Motley Fool and other link to explain DRIPS. This again begins to clear some of this up but would investing with these companies directly also be tax deferred? Someone even at my work looked up 801(k) and there was no section of the tax code on this!

    My questions here would be, does the author here think that “the Stansberry Newsletter” is a scam or is this genuine information? I get a lot of email from these guys (Canadian Gold Mines, A recluse in Colorado genius investor etc)and for some reason some of the recommendations seem wild but some seem to have something in them and are even interesting (for example purchasing a 3 month CD from everbank.com in Icelandic Krona because they are trading at 12.00 – I checked this and indeed the interest rates in Iceland are 12% compared to the rest of the european currency CD’s they sell at everbank but since I’m no currency expert I have real hesitations about putting money down for thes or the fluctuations here against the US dollar. Are these guys for real and why are they doing this?

    My questions about the 801(k) would have to do with ‘one guys’ feelings as to whether the 801(k) methodologies are worthwhile if set up through something like Sharebuilder. My place of work just set up this as a 457plan option with Sharebuilder that uses this fractional share model. The price structure I believe is 48-96 dollars per year to do 1-4 purchases/month + 0.2% of the assets up to 100.00/year https://www.fl457.com/fees.asp

    I’m really no stock investor so I have no absolutely idea if this fee structure is relatively expensive or cheap except that it would be costing me probably an additional (200.00 to invest/year)using this 801k methodology.

    Would this be considered a fair fee in would one could fairly expect to return and are these companies really even poised say for a yearly 12% gain. The 801(k) email has got us all thinking over here about the poor returns on our mutual fund plans and there’s really little information on this on the internet. Thank you gain for your post


  9. Thanks for the comments, Maya. I’m not an investment advisor, so I can’t really answer your questions specifically — but shares bought from a company would not usually be tax deferred like an IRA or 401K (though you pay taxes only on your dividends each year, then on the capital gains only when you sell.)

    These are generally large, solid, consistently profitable companies with decent and growing dividends — I think most advisors would agree that they are good candidates for DRIP investing, if not necessarily the ideal candidates.

    I do think Sharebuilder is a pretty good idea for folks who have a few blue chips that they’d like to spend decades building up positions in. It depends quite a bit on how much money we’re talking about — if you’re investing $100 a month, Sharebuilder probably makes a lot more sense than it does if you’re investing $5,000 a month. A regular discount broker would charge a commission of anywhere from $5-$25 for each transaction and would probably reinvest dividends but wouldn’t buy partial shares for you otherwise (that’s a generalization, I don’t know them all). Your mutual funds likely charge you somewhere between .5% and 2% in annual fees, and a regular stock account would not incur any annual fees for the most part.

    I have no idea whether 12% a year is a likely return for these companies — the S&P 500 typically returns an average of about 10% including dividends, so I would assume that a newsletter ought to at least aim to provide something better than that for their subscribers.

    Stansberry is a huge publisher with dozens of newsletters, it seems — I wouldn’t call them scams, but I would say that not all of them are appropriate for all investors, and may or may not be worth the money. Over at the Gumshoe forum you’ll see some folks giving opinions about the newsletters they’ve subscribed to, good and bad, and you can ask the other participants what they think of any of them, too. Just visit This link for that section of the forums.


    • I keep beating this dead horse. I am a thrilled Stansberry fan. You get what you pay for in research. Not every news letter is for eberyone. I for one, have trashed ALL news letters and rely ONLY on Stansberry investment and of course Gumshoe. Why? I have made a
      respectable amount of money from the research (Stansberry). Stansberry has the integrity to GRADE themselves each year, and inform everybody how they did within the
      context of their research. Were they up, down, way up, way down, or did they bomb
      on the research advice? Who else does that? NOBODY in the industry! NOBODY! That
      speaks volumes to me. Its like the guy that goes to Vegas. He sure as heck wants you to
      know how much money he made, but he will not tell you about the money he lost. Stansberry does. And this is HUGE for me! With this said, I have saved hundreds of
      dollars (perhaps even thousands) from GUMSHOE in exposing a lot of the teasers
      that come across. You just have to take what works for you and let what does not
      go. But I laugh at all the IDIOTS, that insist that Stansberry is a scam. Those are the
      very people that have no business even being in the market. And they want to offer
      the rest of us advice? Yeah right!


  10. Wow,thanks for all the great information, one guy. I really appreciate it and I will check out that link!


  11. DRIP plans have changed a lot over the last 30 years. I think they were originally created to engender customer loyalty, but many companies now consider them a nusience. If you are investing $50 at a time and they change you a $3.00 fee plus $.03 per share plus a 4% fee on reinvested dividends like Wells Fargo does, then you should be looking at other DRIP plans. Some companies like 3M charge no fees and pay all commission costs and sometimes offer discounts on selected products.

    Bottom line, check the fees and when they go up get out by requesting cash a stock certificate that you then send to your discount broker (Wells fargo charges $15 for a sale.)


  12. This is in response to Maya asking about Stansberry Research. I’ve been with them for over 4 years through their True Wealth newsletter and also reading their daily email called “Digest” which I find very useful. I think they are one of the best investment newsletters around. They are very responsible and you learn a lot, even if you just subsribe to their digest for free.


  13. For you in Canada – CANROYS are great. For we do have some and have good payouts as DRIPS. Thanks – Paul


  14. Try this site out. http://www.stockbny.com you can go on at the top for a list of companies and it breaks them down whether they do direct reinvestment plans etc. I use them to buy GE. It is through the Bank of New York Stock transfer. Good information on there.


  15. Thanks for your good service- Standberry and associates are all part of the Ten Headed Hydra known as AGORA– they make outrageous claims many times a day! I may be wrong but Ive never seen a picture of this Porter Stansberry guy–I believe it just to be a NAME..like George Rayburn who also signs a name to the myriad emails I get daily from these people.

    Agoras Head is a guy named Bill Bonner who writes the Daily Reckoning and many times has referred to the investing public( you and I) The LUMPEN INVESTORATE..he lives abroad and considers us all to be stupid..I have 3 of their services and I wished Id never signed up for one.. How can anyone with a conscience send out emails to people claiming possible gains in thousands of points or percent. Hell drips have been around forever and it takes a long long time when your buying a share a week or whatever- These people are hype artists playing on the two things that motivate us all-Fear and Greed. Stay away from them


  16. If you folks are thinking about DRiPs, check out NAIC: http://www.better-investing.org/Public/default.htm . Their principles have stood the test of time and they’ve been around since the early 50′s (I think). I’ve started back in the early 1990′s and am completely satisfied.
    They teach one how to evaluate a company based on the facts and figures (as so to speak) and not what some journalist thinks might be hot…

    Better Investing:


  17. I think it’s right to be skeptical about some of the investing newsletters we all get. However, the 801(k) seems pretty legit. Keep in mind the author overtly says 801(k) is a term he coined because the POTENTIAL exists to double the returns of a 401(k). I’ve seen some other boards with people saying “there’s no such thing in the IRS code as an 801(k).” Duh!

    As for Thornburg, I could swear they also operate an asset management service, so they’re may not be a pure mortgage play. Check on that though, I could be wrong.

    At the end of the day, one probably shouldn’t need to pay $99 to find out what companies pay good dividends, but it’s probably money well spent if you just don’t want to do the leg work yourself. – Todd Shriber


  18. Stansberry and Associates certainly are experts at hype in thier marketing effort. But i really do not blame them for this as it is the best way to be able to entice potential subscribers.

    Overall I believe thier picks do not do any better or worse than the average of the newsletters, and certainly even thier best newsletters have extreme blowups. Which considering sell stops are not alwasy used/advised can destroy a portfolio.

    But from my perspective, the best reason to purchase these newsletters is not to only get the occasional triple digit winners, but the education you get from reading the publications and eventually learning enough to go out on your own and pick winners yourself.


  19. I am a VIP member of three Agora groups: Taipan, Agora Financial and the Oxford Club. Of the three, the Oxford Club has the best record for steady appreciation of capital and good dividends. They are also least inclined to bombard you with sales pitches. The base entry level cost is about the same for each, e.g. $100-$150/yr. VIP lifetime subscriptions are much higher but give you access to all of their publications–and lots of inbox mail. Be sure to ask to be removed from the solicitation emails!

    I also subscribe to Changewave and Stansberry-Sjuggerud’s True Wealth. Both are good, in my humble opinion, but the Oxford Club is the best of all.


  20. I am a True Wealth (Sjuggerud) subscriber and just love his stuff. Watch out for Thornburg, however, as Stansberry just sent an email about its imminent demise (or at least uncertain future) the other day.


  21. Mr. Shriber! Shouldn’t it be an “802K” if in fact the reference was to a doubling of a “401k”. Duh.


  22. If someone can respond to my following question – it would be much appreciated:

    How can Tom Dyson claim that the “801K” would earn twice as much as a 401K – isn’t the point of most 401k’s that the company matches there employee’s contribution dollar per doller, or sometimes .75 cents on the dollar. How can a company’s DRIP earn as much if they are not matching your contributions like your employer’s 401k?


  23. Well if it is TMA the stock is off 60% recently. Not such a great place to put a large part of your retirement.


  24. How can I get into this DRIP investing or 801(K) plans? I want to have a systematic monthly contribution of say, $100. Please advise


  25. Prevalent Entertainment asks –> How can Tom Dyson claim that the “801K” would earn twice as much as a 401K – isn’t the point of most 401k’s that the company matches there employee’s contribution dollar per doller, or sometimes .75 cents on the dollar.

    Most of the 401(k) plans I personally have had through my employers do not match anywhere near 100% of employee contributions. The one I am currently participating in matches 50% of the first 3% of salary contributed. The one at my previous employer did no matching at all! So if your employer matches 100%, my advice is to do whatever you can to hold on to that job.

    That aside, I still don’t see what’s so wonderful about DRIPs since they don’t appear to be tax-advantaged in any meaningful way. You have to pay tax on the dividends even though they get reinvested, for example.


  26. I’m a recent college grad who recently started working so this 801k would be a good investment for me. How exactly do I get started? Any advice would help.


  27. I work for the McLane Company for 15 years now.
    Our 401k has just matched out at 2 to 1.
    They actually took last years earnings and matched that 2 to 1 also….that was an extra $5,000 into my 401k plan.
    I am wondering if it is possible to actually make a descent monthly income from 801k’s


  28. Sorry this is not a more meaningful comment but let’s make sure everyone knows there is no such thing as an 801k – Stansberry & Assoc made up the term. They make up terms all of the time. Their 801k is everyone else’s DRiPs (Dividend Reinvestment Plans). Personally, I find it demeaning that they take fairly well known investing concepts (like covered calls) and literally make up names for them (California Overnight Dividends?!?) as if they somehow discovered something brand new or previously kept secret. This makes me believe that their customer base is composed of new and/or naive investors.

    By the way, within the last few days, they have changed the name of “California Overnight Dividends” to “Transfer Dividends” but kept the exact same copy, including the blatant lie: “One of Jeff’s secrets for making Californians rich is a proprietary income technique we call the “Transfer Dividend.”

    Proprietary? PROPRIETARY??? Since when is writing a covered call proprietary? What some people won’t do for a buck. Or 199 bucks, in this case.


  29. And bsabin, the idea of the “801k,” if we want to persist in calling DRIP/DSPP plans by that name, is generally not to get income, but to build your capital through low cost dividend reinvestment. Much more of a slow wealth building exercise than an income strategy.


  30. I don’t know about all the investment that’s been marketed here, but I’ve been getting 12% returns on a monthly check for a few years now and never miss a payment yet. It’s a corporate guaranteed commercial REIT notes, 9% double insured through a $60billion dollar insurance company. e-mail me if you’re interested at helloed@gmail.com


  31. Folks, I am 84, fully invested in equities, and have been for the past few years since I discovered Investors Business Daily….or IBD….the research is all done for you….with graphs, and all the stats you can digest…NYSE stocks are grouped by industry….evern the WSJ doesn`t do this….stocks are rated from 1 to 99 which is the best….Subs is about $300 a year but it is to be seen FREE at your public library… or you can sub it online cheap, or 1 or 2 days a week..it aint a newspaper ……it is a textbook for successful investors….try it, you`ll like it..


  32. Hello, can someone advise if I can invest in DRiPS based in UK? or is this something soley for US residents?


  33. I have only recently become interested in investing and do not know where to begin. What is a good way for someone with basic knowledge and limited funds to get started?


  34. In response to “New to this”, I was in the same boat as you back in December 2007. I had decided that the only way someone could have become a “dot com millionaire” was to open up a trading account and fund it.

    I ended up opening up a Scottrade account with a minimum $500 investment and bought two stocks that were recommended in a stock picking membership that I had signed up for. But I only had $675 invested and that wasn’t very exciting.

    I’ve been with my current company for almost eight years now and had previously been with Best Buy for eight years before I graduated from college. I decided to rollover the $25K that I had in my Best Buy 401(k) into a Rollover IRA through Scottrade and didn’t have to pay any penalties or a set up fee to do that.

    Once my Scottrade IRA account was funded, I signed up for two or three other stock picking newsletters in order to get a full spectrum of picks and chose what I believe to be the best investments for my limited resources. With the market going crazy right now, my $25K is down to about $23K now, but I’m invested in many companies for long term investing, so I am trying to be patient.

    But then I’ve been hearing a lot about investing in gold and silver, but I don’t really have any money to invest in that. However, I spoke to my current company’s 401(k) plan administrator and she informed me that there was an option for a Segregated Investment Account where I could still be in the company’s 401(k) plan, but I could move a percentage of my money into that account and then get into the specific stocks that I wanted my money in. I filled out the paperwork for that a few weeks ago and I’m apparently the first person to ever fill out that form, so it’s taking them extra long to figure out how to set it up for me. :)

    Once that account is set up and I am invested in the stocks that I want to be in, I am going to move $10K of my now $23K in my Scottrade IRA account into a gold/silver IRA fund.

    I think I was always freaked out about stock investing, because I assumed there were a lot of tax penalties when you bought and sold stocks. Now I know there’s a 35% capital gains tax if you sell a stock that you’ve held for less than a year and a 15% capital gains tax if you sell a stock that you’ve held for over a year, and no capital gains tax if you buy/sell stocks in an IRA account until you eventually withdraw your money, usually upon retirement.

    So I’m learning, much like you need to if you have “only recently become interested in investing.” I would recommend signing up for some stock picking newsletters to get into the mindset of how investors think.

    I had signed up for The Insider Code (for WAY too much money) to learn about foreign currency trading and received 10 DVDs and a year’s membership. But I’ve since decided that I don’t have the patience to sit through two of those DVDs, much less all of them, to learn what I need to know to have the membership make sense.

    I’ve also purchased memberships for The Takeover Trader, Agora Financial’s Penny Stock Fortunes, Agora Financial’s Outstanding Investments, Agora Financial’s Strategic Short Report, and just recently, The Motley Fool’s Hidden Gems.

    Most of my initial stock picks were from Penny Stock Fortunes and I wasn’t that impressed with their selections’ abilities to give positive returns in a down market. Outstanding Investments seemed to me to be the best of the bunch so far, at least when you compare the performance of their picks since they chose them.

    I found this website, because I too received the 801(k) thing in the mail yesterday for the first time and was all set to call them this morning to pay the $49.50 that they are asking for a one-year membership. That seems like a fairly reasonable price for their research, even though someone listed their company picks at the top of this page. I just think it’s important to be exposed to something like the Strategic Short Report so I can also learn the mindset of selling stocks short. I haven’t quite wrapped my head around that completely YET, but the best way to learn is to start small, learn all aspects of trading in the market, don’t be afraid to make mistakes, and not worry about becoming a millionaire overnight. That’s not realistic, not matter what these marketing people tell you to get you to sign up for their newsletters.

    But you know what? You COULD become a millionaire overnight, but that’s 100% impossible if you don’t set up an account and purchase some stocks recommended by people way smarter and more experienced at this than you are. You’re also not going to win $100,000,000 in the lottery if you don’t buy at least one Powerball number a month, right?

    I don’t know if I’ve purchased the best stock picking memberships that are available, but I’m in the game now. Not anyone on my team at work knows anything about stock investing, and they are all asking how my stocks are doing. So far, I haven’t been impressed, but it’s been exciting to log in every day to check their performance.

    I had invested in LBIX based on a Penny Stock Fortunes recommendation when I first signed up for them and got in WAY lower than they had a few months earlier. By the next month, they decided to sell that stock for a loss, but I decided to stay in. I had decided to set my sell stop at $1.85, which would have meant I would have made $1,000 on that stock, but it went up to $1.84 and then TANKED!! It went all the way down to 95 cents per share and I ended up getting out at a $1,000 loss after it went back up a bit. That was my first stock sell and that taught me not to be too greedy to hit a $1,000 gain on every stock, since I might never get there. But I was one penny away! One penny!! That’s very frustrating. But now I know the sectors that I want to avoid and no longer make quick decisions on whether to buy or sell a stock.

    So in summary, I am new to this too, but am learning and am investing. This weekend, you should decide if you have at least $500 to open up a Scottrade account (or any others, I like their $7/trade commission) and fund it with at least $1,000, or if you want to roll over an old 401(k) plan into the Scottrade account, or if you have a current 401(k) and your company will allow you to set up a Segregated Investment Account through it like I am trying to do. Or you could request the free gold investors guide through Lear Financial Gold Investments by calling 800-474-4259 like I did a few weeks ago. They are the company that I am contemplating investing in a $10K gold/silver IRA, but they have an option on there for a $2,500 investment as well and you can either keep the gold/silver in your possession or have them hold it for you. As the dollar continues to decline rapidly and most stocks tumble, gas prices and gold/silver prices will skyrocket. If I had more money, I would get into as much real gold and silver as possible, not so much in gold and silver stocks (though I am invested in one gold stock and a few mining companies, since they are relatively inexpensive per share and I wanted to be invested in a handful of stocks with my $25K and not just one really expensive stock).

    I hope everyone that reads this realizes that I’m not trying to hawk any particular companies, but for someone new to this it really helps to at least know what someone else did or is doing. :)

    I should probably end this now.

    Good luck investing, “New to this”!


  35. Holy cats! I just looked at the TMA stock. It went from $12.40 on February 27, 2008, to an all-time low of 69 cents on March 10, 2008. If you had invested $10,000 in that stock on February 27th, you would have lost $9,443 in 12 days. No thanks!

    But I am still curious to read up on the research in the “801(k)” report. I’m going to sleep on this and check out the performance of the other picks before I part with my $49.50 though! This has gone from high urgency to low priority now…


  36. I listened to this Stansbury paper and bought Japanese REITS through Everbank over a year ago and it has done nothing!! He said that real estate in Japan was about to explode after so many depressed years. I get my principal back at the very least if the Japanese index declines or doesn’t move forward. I wont be taking his advice again. I think this guys just pulls alot of these ideas out of his butt and works sweetheart deals with certain coin dealers, banks and other co-conspirators.


  37. “Investing for 5 Months Now” – Don’t buy gold now. It is too expensive. Buy real estate funds in the good old USA. It is cheap now. I bought some shares in Ishares Tr COHEN&ST Rlty and am up 17% injust a few months.


  38. I subscribed to Agora one time and that was enough. The ‘Oxford Club’ was late to buy and late to sell. They had more lag than a simple moving average crossover on Stocks.com. Bonner even admitted buying his chateau in France without inspecting that it had a roof in some rooms. I find it pretty hard to trust my investments to an eliteist dodo that doesn’t have basic common sense to walk through each room of a place you are buying and see if you can see the sky. (My take is that Agora is a club of middleage smartass kids that have no self esteem of their own because they inherited ‘old money’ from their hard working parents and have never ran a real business or met a payroll in their lives. If they had, they would understand what humility really is.

    (Legit newsletter for income)
    For CanTrusts/CanRoys, I have subscribed to Roger Conrad’s Canadian Edge (.com) for years. He is a super hardworking analyst with a credible history…plus he will return your email questions.
    Richard Lehmann’s (from Forbes) is good as well, but he is a bit more conservative.

    Here is a warning from someone trying to retire early at 55.

    On IRAs…in your long term planning make sure you will really be in a lower tax bracket when you retire. Remember, you DO NOT get LONG TERM CAPITAL GAINS TREATMENT when you pull your money out like you would in an plain old taxible account.

    SEPP rules were changed a couple years ago and the Federal MidTerm Rate is now mandatory to compute distributions should you want to retire before 59 1/2 with the 10% penalty. The MidTermRate has crashed with Bernanke’s rates since August. I retired early and earn 10%+ on my investments…the FMT Rate is down to 3.29%…I don’t want to grow my IRA anymore, but I am force to do so at the expense of monthly cash flow.
    See http://www.72t.net/

    Roth’s? Give some thought to the govt taking away the ‘no tax’ clause later for some ‘emergency’ reason. Who can you trust?

    The Central Planning Bureaucrats are killing our freedoms worse than any derranged monarch in history.

    Sorry for the long rant, but I wanted to pass along some of the cr@p that I have been running into and wish someone had passed on to me earlier in my life.

    Best regards,


  39. I to have my IRA with scottrade and have had it there for years. I wanted to invest in silver in my IRA and didn’t want the hassel of transfering it to another high priced outfit. So I bought SLV, a silver ETF that per share price closely matches 10 ounces of silver. Cheapest way I saw to fund an IRA with silver.


  40. 801k Plans – - I just got my first report from these guys, T. Dyson et al., and was very excited and then I realized, “Well, here we go again, better check this out.” I was amazed at how fast I went to Google and once I placed 801k and hit search, your Gumshoe page came up and voila! Here I am with all of you. I am most happy to have found Gumshoe and all of the comments by individuals who are willing to share. I am in a learning mode, recently purchased an 801k (ha ha),
    stock but didn’t even realize the value of what I had purchased until reading all of this today. Not asking questions and not taking action are two of the biggest mistakes we can make in life. I am grateful for this information. I have many questions and a number of them were answered here today. Ok, since I am new here, maybe I missed something. Where did you come up with
    Gumshoe? Thanks……….MK


  41. I’m very thankful to have found this website and once I realized what it’s doing I signed up immediately. I have fallen into the Stansberry & Associates web and have subscribed to four of their newsletters. My experience is that much of what they promote in their long e-mails has little real substance and there’s always another newsletter to subscribe to.

    One gem that has emerged out of it is an e-mail from Alexander Green of The Oxford Club called Spiritual Wealth. It is absolutely wonderful and one e-mail I look forward to when I get it as opposed to the deluge of e-mails (always with an advertisement for a new newsletter)from Stansberry.

    This is just my personal experience. Other people may have had better results from Stansberry’s many offerings, but I hope you will take a look at Spiritual Wealth if you get the chance.

    Meanwhile, Stock Gumshoes, thanks so much for your unbiased and informative website. Very refreshing in the age of hype!








  45. I am a subscriber of Stansberry and the 12% letter. The new companies that are listed are what we called WDDG’s (World Dominating Denominator Growers) these guys are the kings of the world and investing with them through DRIPS is the way to go. These companies still payout the dividends even if the market goes down. Much more than the common stock buying through the broker but the real way to win is to invest regularly with the companies that you choose and invest a lot, most have their yearly Max. Like WMT whose max at this time is $150,000 a year. You reinvest your dividends and then when you have enough that your satisfied with then you can start getting monthly checks if you want. It is nothing new and this is not rocket science only consistency and yes you can be a millionaire over time but not tomorrow. Just spend the $39 , what their are charging now and get the information for yourself and get educated instead of guessing what it is. I’m glad I did. One other thing, there is no way in the world this newsletter is making money with these companies unless they are the owners of them and that is highly unlikely. If you want to be comfortable or wealthy especially in this uncertain envirnoment then get educated and stick with the companies that run the world and don’t look like they will be going out of business. This day and age were living in now is for the educated not the ignorant.
    One other thing, the guy in post #40 who wanted invest in gold but a post a few down from him told him to invest in Real Estate, I bet he wish he would of went all in in Gold. At the time of that writting gold was around $667 and since that time it had went up $1920, that’s a $1253 increase,nothing has or will exceed the precious metals so this time get yourself in the market and stay in for the long haul. I’ve been invest since Silver was at around $8.59 or so. Ok, just wanted to share this with those who come across this in the future and still don’t know what to do. Getting rich is about slow and steady, it might not be glamorous but it is for sure.


  46. I use the site listed in the article, Sharebuilder.com and I’ve apparently had several 801k plans over the years :) Sharebuilder does charge a fee, but it’s the commission on the purchase of the stock, not on the reinvestment. Reinvesting dividends and capital gains is free, and its automatically done, unless you change the setting. Also, the monthly charge has nothing to do with reinvesting; it is for better reports, and lower commission fees. I’ve been using them since around 2005. I briefly switched to Sogotrade because their commission is cheaper, but they don’t automatically reinvest and unlike Sharebuilder, you can’t purchase fractional shares.


  47. Sharebuilder.com is great! up to 12 purchases a month (once or twice per) on the auto plan and $1 for each additional… (direct market trades are $6.95) for a $12 all inclusive fee… I’ve been using them since ’04… have separate accounts set up for the kids for college.
    Now there’s a new player I found – LOYAL3.com
    Big Brand Loyalty is the focus. Walmart, Apple, Starbucks, Coke, Pepsi, McDs, BKs, Berkshire, Disney, Amazon, EA, Google, Intel…. just to name a few… and these Companies pay ALL the fees!
    It’s a one stop DRIP shop! With just $10 to start… you can even do IPOs with a min balance of $350. And new companies are joining all the time. Full service brokers must be thrilled.


  48. I have been a member of the Stansburry and Associates for 8-9 month snow…I am intrigued and always try to read their newsletters but cannot wrap my head around it all yet. I think I need to be lead in a major way. Sometimes when I’ve read about the 770 accounts and now the 801k plan, I want to dive right in but am afraid. Can someone please tell me if I need to subscribe to get all the info on how to get started on a 801k plan. I don’t have a 401k or anything, just money sitting in the bank making peanuts!! The subscription is now 39$ btw, BUT WILL IT HELP ME?


  49. You gotta stop an wonder some times. If these guys are making so much money with their sure thing stock-picking techniques, then why in the world do they need to spend so much time peddling their stock-picking techniques?!?

    It seems almost every day I get an email, usually about 30 pages long, hyping how wonderful all of their research is, how great their picks are, and how you can make free money every day. I now get the feeling that to make sure-thing free money I need to get myself a newsletter, a spam emailer, and a following.

    Many of these micro-cap newsletters rely on something akin to a pyramid scheme. They say, buy this stock and watch it go up. Well, guess what, if you get 10-50 people to buy a lightly traded penny stock, surprise, it will go up. Now just try to sell and see where it ends up. The last guys on the pyramid end up paying for the returns of the first, and the first are usually the guys SELLING the advise!

    You wanna get into investing and build for the future?!? Great! Forget about the quick buck panderers; you’ll end up spending more on subscriptions than you’ll make in returns!. Go to Yahoos finance site, Googles, MSN, and read, watch, learn.

    It’s not too hard to find reputable companies that will give you 20-30% returns annually. Look for real substance, things like actual revenues, earnings, cash-flow, low debt. Avoid hype as it tends to overinflate valuation. Be patient, persistent, and think three times before buying something on random recommendation.

    And most of all, good luck! Even in the best of situations, with the best companies, you can lose money.


  50. First go to the top and read about the coined term “801K”. It almost got a lot of us. Thank gosh for this site!!!


  51. The Oxford Club is a very good thing to belong to. May I sugest that you check out their “PERPETUAL MONEY PORTFOLIO”. All the companies listed in it pay high yielding monthly dividends.


  52. really am confused on the subject of the 801k plan from stansberry research can anyone gimme advice on this gist? thnx.


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