These “801(k) Plans”—which have no age, income, or employment requirements—grow your money up to 4-5 times faster than traditional 401(k)s or IRAs. But it’s unlikely you’ve ever heard about these special programs before: The U.S. government has placed restrictions on advertising them to the general public.
See the video here-http://pro.stansberryresearch.com/1205801KUPDT/LTWPN627/
A Rare Glimpse Inside “U.S. 801(k) Plans”
The opportunity I call “U.S. 801(k) Plans” began in the 1960s, during America’s economic and population boom.
Back then, our country was experiencing a period of rapid economic growth. To keep up with this growth, America’s basic infrastructure – things like bridges, highways, oil refineries, water and sewage systems, electricity distribution, and commercial and residential real estate – needed to be built or improved upon.
Naturally, there were only a few companies capable of handling such big projects. More importantly, these companies were in constant need of new capital to ensure these projects were done right.
So the government came up with an ingenious solution. They allowed this group of companies to sell equity shares directly to the public, rather than through the traditional financial markets. This was a pretty big deal, because ordinary Americans didn’t have to go through a broker to become an investor.
In fact, some of these companies even gave huge discounts (up to 5%) for buying shares directly through the company.
These companies encouraged the direct investment by paying out high dividends and designed programs that automatically reinvested the profits. This ensured that ordinary Americans could start out small and safely accumulate thousands of dollars in savings, without ever investing another penny.
But here’s the thing…
Because these plans completely bypassed traditional brokers and money managers, Wall Street lobbied Congress to forbid them from being advertised to the public…
As The Wall Street Journal wrote:
Securities and Exchange commission rules won’t let them say much about this fabulous way of saving and building wealth… And because brokers, fund managers, and other middlemen can’t make any fees or commissions if you buy stocks directly from a company, you won’t hear about the secret from these middlemen.
Or, as MarketWatch put it:
“Brokers and money managers won’t tell you ‘the best kept secret’ and they’ve made sure Congress and the SEC keep it a secret too.”
Do you see why practically no one knows these programs even exist?
But the good news is that today many online brokers will gladly help you get started. It’s a service they often offer free of charge, even though they probably don’t advertise it (you just have to know what to say to them). So you don’t have to bypass your current broker or open any new accounts, if you don’t want to.
But the real question is, how much money could “U.S. 801(k) Plans” help you make?
Let me show you…
Retire Well on Just $10 a Month
One of the companies offering a “U.S. 801(k) Plan” is a business called Raven Industries.
Founded in 1956, Raven is a South Dakota-based manufacturer of building components for the industrial, agricultural, energy, and construction sectors.
Sounds like just another boring manufacturing company, doesn’t it?
Raven is actually one of the most fascinating businesses in the country because they are one of the few that offer a “U.S. 801(k) Plan.”
You see, every year like clockwork, Raven brings in millions of dollars in revenue… and every year, recycles a large portion of that money back to shareholders through its “U.S. 801(k) Plan.”
How much could you have made taking part in Raven’s “801(k) Plan” over the years?
Well, let’s say you decided to put just $500 into Raven’s “U.S. 801(k) Plan” back in… say… 1992. If you let it sit—without touching it—today you would have more than $25,100.
Not bad for a one-time investment of five hundred bucks, right?
By comparison, a $500 investment in the dividend-lacking S&P 500 stock market index at the same time would be worth about $1,700 today. In other words, investing in Raven’s “801(k) Plan” was about 14-times better than investing in the stock market!
But let’s take things a step further…
You see, one of the great benefits of “801(k) Plans” is that you can add as little or as much money as you’d like each month — $10, $20, $50… whatever you want. And these contributions, no matter how small, can make a huge difference in your returns.
For example, let’s see what kind of difference it would’ve made simply by adding an extra $10 a month to Raven’s “801(k) Plan” over the years…
So, starting with your original $500 and simply adding an extra $10 per month, today you would have more than $56,000…
That’s more than DOUBLE what you would have made by adding nothing at all to the plan.
It gets better…
Let’s say you added an extra $25 a month (about the price for dinner for two at a cheap restaurant). Today you’d be sitting on more than $102,500…
More than 4-TIMES better than adding nothing to the plan.
And get this, if you added an extra $200 each month to Raven’s “801(k) Plan” you would have more than $644,000 today…
You see, “801(k) Plans” are specifically designed for people who want to start out small, but want the ability to accumulate thousands – even hundreds of thousands of dollars – without risking very much money.
Here are just a few of those people, who recently told us about their experiences with these little-known plans:
Kenny B., from Winston, Ma, told us:
“My account went from $1,200 to over $600,000. I would definitely recommend this.”
Kyle V. from Boca Raton, FL said:
“I watched my $6,000 grow into $60,000.”
Luke R., from Pascagoula, MS, told us.
“It made my parents rich—nearly $1 million, as of today.”
And Mike V., from Oakland, MD said:
“We’ve more than quintupled our initial investment — $5,000 has become almost $30,000.”
Do you see why I say these plans could help make traditional retirement plans – like 401(k)s, IRAs, even Social Security – obsolete?
Read more about how this works here – http://pro.stansberryresearch.com/1205801KUPDT/LTWPN627/
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Dan Ferris Editor, The 12% Letter April 2012