What’s the “$1.10 A Day Retirement Plan?”

Sleuthifying out the latest 12% Letter Teaser

By Travis Johnson, Stock Gumshoe, February 27, 2013

I know that many of you have seen the teasers for the “$1.10 a Day Retirement Plan” that are being sent around the interwebs by the folks at the 12% Letter — not many folks have the email marketing might of Stansberry & Associates, that letter’s publisher, and lots of you have been asking about this one.

It probably won’t surprise those of you who’ve been digging in the Gumshoe salt mines for any length of time, but this is not a brand new idea. Nor is it the first time it’s been teased — this same basic spiel has been pitched before by the Stansberry folks as the 801(k) Plan (get it? 801k is twice as good as 401k, right?), the 424 Dividend Boost, Black Market Income, the “Post Office Secret” for “One Share Millionaires” and Wal-tirement (though apparently Walmart sent them a cease and desist letter for that one — a letter that itself became a marketing ploy) …

… and others have teased it too, of course, as “Retirement Plan B” or as “Pension Paychecks” or any number of other mysterious-sounding names for what is a pretty long-lived, well-established and, well, otherwise boring investment strategy.

Boring works pretty well in investing, but it doesn’t work so great in marketing investment newsletters. Thus, the subterfuge.

So what is the pitch? Well, that hasn’t changed much in the five or six years (or longer, perhaps) they’ve been sending out very similar ads for the 12% Letter — the pitch is that for a tiny investment, starting with just one share, you can sit back and sacrifice little and built a massive nest egg.

And it’s sort of true.

Here’s how the ad gets you excited:

“Atlanta couple’s amazing… $1.10-A-Day Retirement Plan

“One prominent news source calls it, ‘A retirement plan that leads to easy street.’

“Atlanta, Georgia residents Jeremy and Lynn Trudeau recently built a nearly $100,000 retirement account simply by setting aside about a dollar per day—and they did it WITHOUT touching penny stocks… options… mutual funds… bonds… or anything even remotely risky.

“And, they’re sharing their story with the rest of America.

“Can you spare an extra dollar per day?”

And it gets more interesting when some of the details of the big numbers are shared … partly because there are a lot of people who are in a similar situation to the “Trudeaus,” so there are probably at least a few of you out there in Gumshoedom who identify with this kind of problem (and solution):

“Back in the mid-90s, the 50-something couple had almost nothing saved up for retirement.

“Decades of hefty mortgage payments, countless bills, and paying off their kids’ college tuition left the Trudeaus with just $122 for ‘the golden years.’