How to Build Your Own Cash Machine

By Teeka Tiwari

Friday, February 19, 2021

Editor’s note: To finish off our guest series this week, we’re turning to our friend Teeka Tiwari from Palm Beach Research Group.

Longtime Empire Financial Daily readers are familiar with Teeka… His personal mission is to help teach individual investors how to grow their money safely. And right now, he’s found a brand-new opportunity for folks to create wealth…

Not so long ago, retiring with a comfortable nest egg took some time, but it wasn’t impossible…

That’s because from the late 1960s to 2007, the average interest paid on a 10-year government bond was 7%.

If you worked hard, put money away in a bond portfolio, and reinvested your interest, $100,000 in bonds would become worth $750,000 in 30 years. That would have generated a comfortable $52,500 a year in interest.

Not champagne and caviar money… But certainly enough to have a dignified retirement.

All of that ended when the Federal Reserve decided to wage a “war” against declining stock prices during the 2008/2009 global financial crisis.

In its frantic efforts to save the stock market, the Fed cut interest rates to near zero. Then, it printed $3.6 trillion in new cash to buy back distressed bonds from its banker buddies.

This was not a victimless crime…

You – the American saver and future retiree – got screwed.

How? Remember how $750,000 in bonds would give you $52,500 a year in income?

Today, because rates are so low, instead of making $52,500 in annual income, you’ll now make about $7,500. So, you’d now need $5,250,000 in bonds to equal what $750,000 in bonds would’ve paid just a few years ago.

Don’t believe the Fed when they say there’s no inflation. How is there no inflation when you need 7 times more money to maintain the same lifestyle you would’ve had 20 years ago?

And while your interest income has cratered, the wealthy are making off like bandits…

Over the past three decades, the top 10% of U.S. households have seen their wealth rise by 10 percentage points, according to Forbes.

At the same time, the bottom 50% of U.S. households have seen their wealth cut in half.

And in dollar terms, the top 1% of Americans have a combined net worth of more than $34 trillion, while the bottom 50% have a combined net worth of just $2 trillion.

The deck has been stacked against the average American for decades… and the billionaires laughed all the way to the bank.

If you want to do more than just get by… you must do something different. The same old, same old just isn’t going to cut it.

That’s why my mission has been to help everyday Americans find a way to safely plug this income gap without putting their current lifestyle at risk. It’s the reason why I’ve traveled so extensively and partnered with experts outside my core field of knowledge.

It’s all in an effort to help you claw back the profits and income that are rightly yours.

Today, I want to talk to you about a way to build your own collection of ‘cash machines’…

It’s a new way of creating wealth that could change your life forever… Even if you only have a small amount of money to invest.

Back when interest rates were higher, you still needed a lot of money to make money. For instance, when I started my career on Wall Street in 1989, the 10-year Treasury note paid about a 10% yield.

If you put $100,000 in Treasury notes and reinvested the interest over 30 years, you’d have collected $282,000 in interest payments by the time you retired (plus your $100,000 principal).

That’s a great return… But $100,000 in 1989 is equivalent to more than $200,000 today. Not even one in 10 people can put their hands on that much cash.

And as I mentioned above, the financial crisis changed everything…

It demolished 401(k)s and other savings accounts… And it prompted the Fed to start slashing interest rates.

Since then, everything we knew about creating wealth through income investments changed.

Yields disappeared… Certificates of deposit (“CDs”) began paying next to nothing… Annuity streams dried up… And safe stocks that used to pay a good yield went up so much that their dividend yields were driven into the basement.

Today, the yield on the 10-year note is about 1%. Even if you had $1 million, you’d only make $11,800 per year. That’s not enough to cover your family’s health insurance, let alone fund a retirement.

And things are about to get worse.

It’s no secret the Federal Reserve is pulling out all the stops to rescue the U.S. economy from the ravages of the coronavirus pandemic. The Fed has gone on a record bond-buying spree that is dropping interest rates across the board.

If you’re looking to create wealth through income in this ultra-low-rate environment, you need to think outside the box…

Over the past year, my team has been researching a new type of income stream only a few folks know about. I’d wager 99.9% of Americans have never even heard of it.

Yet, we’ve used this asset to deliver average yields of 10% and extraordinary yields of as much as 45%, 141%, and 226% – regardless of what’s going on in the market.

Our average yields are more than 550% higher than the current yield on the S&P 500. On top of those yields, we’ve already delivered average open returns of more than 500%.

It’s a technology that increases in value and yield the more people use it. I call these investments “tech royalties.”

They’re a new sub-class of cryptocurrencies that pay out more crypto in rewards.

What I love about these investments is that you can achieve massive capital appreciation along with massive yields… without risking massive amounts of capital.

I call this type of investing ‘positive asymmetric-risk investing’…

That means you can have huge upside from just a handful of tiny investments… even as small as $200.

Imagine owning a small stake in a portfolio of different music acts, and one goes on to become as big as The Beatles.

This is the opportunity in front of you right now with tech royalties – some of these names will end up being worth hundreds of billions of dollars. And you’ll own a piece of them – and the income they produce – forever.

Imagine securing the equivalent of a royalty stream that changes the course of your entire generational line. That is the opportunity in front of investors today.

If you want to hear more about tech royalties, mark your calendars…

On Wednesday, February 24, at 8 p.m. Eastern time, I’m hosting a special Tech Royalty Summit training session.

During this event, I’ll explain what tech royalty investing is… how to spot the good ones… and how to avoid the bad ones.

I’ll also share the name of my No. 1 tech royalty investment for free as a thank-you for tuning in. Simply click here to reserve your seat. I’ll see you on Wednesday!

In the mailbag, more thoughts on the VG Acquisition (VGAC) deal for 23andMe and some lovely reader feedback…

Have you found yourself shifting more money outside of bonds and cash in this ultra-low-rate environment? Send an e-mail to [email protected].

“Thank you for your insights on VGAC, Berna. As a customer of 23andMe, I got ahead of myself and had purchased a few of the warrants, waiting for either you or Enrique to weigh in. Needless to say, I sold them this morning (at a tiny loss). Lesson learned: Will wait for future SPACs to be recommended in Empire SPAC Investor before pulling the trigger!

“For me, the problem with SPACs is I did so well on my first one… Virgin Galactic (SPCE)… thanks to Enrique and Whitney’s recommendation. I forget that stocks like Virgin Galactic are NOT the norm!” – Bill B.

“To Berna, Yes, a covered call writing service would be a great idea.

“I share your privacy concerns about 23andMe and similar companies. Although given a test kit for Christmas, I have not used it.

“Will skip the VG Acquisition SPAC, but I’m doing well with Enrique’s SPAC recs. Thanks, and keep up the good analysis.” – Frank M.

“Berna, I found out that I carry one copy of the gene for hemochromatosis (iron overload), which is likely not dangerous for me. I told my two sons, and it turned out that my ex also had one copy of the gene, and my younger son was unlucky enough to get two copies. He goes in to get a blood draw periodically to protect his liver. He is only in his 40s, so he likely caught it in time.” – John S.

Berna comment: John, that’s great that the test gave you such actionable health information for your family!

“Regarding covered calls… sure, obviously if it would still focus on stocks you like! Anything you, or Enrique, or Whitney put out is worthwhile reading!

“As I tell the wife, you are my holy trinity of investing/trading! Stay healthy.” – Dave K.

Berna comment: Dave, that may be the best compliment that we’ve gotten! Thank you!

“Berna, I like how the various Empire newsletters are categorized. I don’t know the incentive share model among Whitney, Enrique, yourself, and the analysts. You all seem like such a good team. I would think covered calls will be covered under the recently released Empire Elite Options newsletter. Of course, if covered calls are a side strategy of a particular investment recommendation, then they can be included as part of that too (just like Elite Trader or Growth).

“You have a lot to offer. I checked out your LinkedIn profile, as well as past videos of you from Whitney’s forums. Your strengths in fashion, fast moving consumer goods (FMCG), consumer-oriented tech, etc. Also, your experience in long/shorts is interesting too. Perhaps, all these can be your differentiator when you launch your own newsletter. Anyways, whatever your slant is for your newsletter, can’t wait to read, learn, and profit when it launches.” – Michael C.

Berna comment: Michael, thanks so much for the kind words and the vote of confidence. My newsletter will be launching later in the first half of this year… Stay tuned!


Teeka Tiwari
with Berna Barshay
February 19, 2021

Whitney Tilson
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About Whitney Tilson

Prior to creating Empire Financial Research, Whitney Tilson founded and ran Kase Capital Management, which managed three value-oriented hedge funds and two mutual funds. Starting out of his bedroom with only $1 million, Tilson grew assets under management to nearly $200 million.

Tilson graduated magna cum laude from Harvard College with a bachelor’s degree in government in 1989. After college, he helped Wendy Kopp launch Teach for America and then spent two years as a consultant at the Boston Consulting Group. He earned his MBA from Harvard Business School in 1994, where he graduated in the top 5% of his class and was named a Baker Scholar.

Click here for the full bio.