Apparently the world has royalties on the brain this week … or at least, the part of the world that lives in Florida and has worked for Porter Stansberry. Frank Curzio, who writes from northern Florida, I think, has been pushing for royalty stocks, most recently patent and pharmaceutical royalties, for his expensive Phase 1 Investor letter in a pitch we covered yesterday. And Tom Dyson, who left Stansberry a couple years ago to start up the Palm Beach Letter with Mark Ford, is presumably down in Palm Beach and has recently started touting the “Override Income Secret”.
And the “Override Income” spiel, as you’re probably guessing, is also all about royalties. As with the “Mainz Income” pitch that we’ve seen over the years from Dyson’s prior employer, they get your attention by focusing on some well-known people who get “secret” income … and, exactly as with “Mainz Income,” those folks are all getting their special “Override Income” from book royalties.
As in, they wrote a book and then, as long as the book sells and makes money, they get royalty checks from the publisher.
I can see why they use this example — it plays nicely on any anger you might feel toward Ben Bernanke or the other Federal Reserve governors who are enjoying royalty checks and play the headline role in this Palm Beach Letter pitch…
… or toward George W. Bush or Barack Obama or Hilary Clinton, who have generally headlined the Mainz Income pitches because of the multi-million-dollar royalties from their memoirs.
And no, you aren’t going to get multimillion dollar secret “Override Income” exactly the way these folks do unless you write a bestselling book or two like they did (or get famous enough to have someone write a book for you), but authorship royalties are a nice clean way to explain the concept of royalties or “Override Income.”
Why? Because you’ve heard of them — you understand that if you write a book or a song you get a chunk of the revenue those works bring in because you own (or owned, and sold to the publisher) the copyright. It makes logical sense.
And the “Override” part comes from the fact that most of these kinds of royalties — at least, the ones like metals, energy, patent or pharmaceutical royalties — are paid off the top line. A straight percentage of sales, in many cases, often without any deductions for operating expenses or unexpected costs or whatever.
So we haven’t yet told you what the secret picks are, and we’ll get to that, but first let’s take a quick look at some of the spiel from the ad …
“The Federal Reserve’s 94-Year ‘Override’ Income Secret—Exposed …
“The men and women of the world’s most powerful institution have been harboring a powerful income secret – one that allows them to collect an extra $6,250 to $23,000 or more each month—on top of their regular salaries and pensions.
“Find out how they do it, and how regular working Americans are beginning to do the same.”
This “Federal Reserve” bit is clearly designed to catch our attention, despite the fact that it has almost nothing to do with the actual investments Dyson is pitching. Here’s a little more:
“In fact, these men and women know so much information… they aren’t allowed to own certain stocks. They can’t buy and sell securities within a seven-day period before policy-setting meetings. And they can’t invest their money in the week leading up to and following a major Federal Reserve announcement.
“But what many of these ‘mega-bankers’ do own—going all the way back to the birth of the Federal Reserve in 1913—is an income stream so lucrative, it has the power to pay them one hundred to one thousand percent of their annual salaries.”
And yes, many of the members of the Board of