The Preferred Way

The Preferred Way is an amazing and unique way to generate thousands of dollars of monthly dividend income, provide share appreciation opportunities while taking about half the risk of the S&P 500. This strategy can easily be implemented by the beginning investor with $500 to invest or an experienced investor with $500,000 at their disposal. There are no complicated allocations or formulas to follow and you will be shown how to identify target investments without spending a lot of time. You will be shown how to quickly develop your plan following the principals of the Preferred Way. This is a stress free approach to investing that can give you a smooth path to wealth instead of the market roller coaster ride. Financial institutions, options and futures are not a part of this investing strategy. One of the keys to this strategy is using securities that are less understood and not heavily followed and then capitalizing on this market inefficiency. Master limited partnerships and preferred stocks are combined with old school dividend paying utility stocks. Portfolio yields of 6.0% and more are not uncommon and easily within reach of the regular investor. Don't panic if you are not familiar with these investments, you will be able to learn the basics very quickly and if you are an experienced investor, you will get a good refresher and updated information.The yields on these securities are higher than the regular stock market and bond market because there is a sense of market disconnect when dealing with master limited partnerships and preferred stocks. Most of the investors in these categories are either institutions or buy and hold type investors. These securities are not particularly exciting investments and do not get a lot of attention from the traders and market gurus on TV. When I mentioned 'old school', I was referring to regulated utilities whose profits are set in advance by law. These are the kind of utilities that everyone needs in their lives every day like basic electricity, natural gas and water. Everyone buys electricity, water and heat when money is tight. Vacations will be cancelled before they take cold showers and sit around in the dark. Master limited partnerships trade like ordinary stocks, but pay much higher dividends because the government exempts them from paying income taxes if they pay out most of their earnings. You are probably thinking 'what if the price of oil collapses as it did in 2008'? Most investors don't realize that many master limited partnerships get paid by moving oil and gas through their pipelines similar to a toll road collector not as risky as energy production companies. Preferred stocks are one of the most misunderstood securities on the planet. What most investors don't realize is that this class of stock is a hybrid between a stock and bond. It provides a far greater yield and is more secure than the underlying common stock. What this means, if a company comes up short for dividend payments, the preferred stock shareholders will be paid before the common shareholders, unless even more favorable prior arrangements were made. Don't worry about doing what we call homework as you will be shown where the most informative data is located and will save you a lot of time that ordinarily would have been spent conducting exhausting research. The chore of deciding who to use to purchase your investments is narrowed to fit your particular circumstance and help you get off to a smooth start. Assembling your monthly paycheck portfolio is explained in easy to follow simple terms and can be implemented quickly. When you are collecting a monthly paycheck of $500, $1000 or more each month in dividends with less than average market risk you will marvel at how easy it was to implement this strategy. A few hours of reading for a lifetime of monthly income, sounds like a good Preferred Way deal!Preferred Way 2012 = 12.6%S&P 500 = 2.05%