Americans Earning a Daily Free 6-pack Need MORE!
The Free Beer Song, a true classic. Unfortunately, I have some bad news. There will be little talk of beer today. We will talk ONLY about beer next week with not a word of investing but for now, enjoy an appropriately cheerless, beerless song:
This is my third post here and I think it’s time to clarify a few things of interest before continuing down the list of how to get free brewskies.
One thing that I do here is to recommend assets for building a balanced portfolio over time. This portfolio will hopefully fund ALL of your drinking until the end of your days. It may even go so far as to fund your kids’ drinking binges as well! BONUS!
First, here are few assumptions that I’m making:
1. You’re young.
2. You like beer.
3. You don’t like gambling.
1. Presumably, you’re at your peak beer-drinking age. You’re either a college student or a recent graduate. This is important because it means that you have some 40 years to buildup a good portfolio that will provide you with all the beer you could ever want for.
2. You like beer. ‘duh!
3. You’re not relying on the lottery to get ahead. You want something more reliable. So while you’re not looking for a miracle, you can take a few risks to get ahead.
It’s because you can take a few risks that I recommended ISCO at 0.15$ three weeks ago. Quite frankly there is NOTHING RISKIER than a penny stock pumped by a newsletter or blog! These bad boys will explode upwards 20, 30, 50% or more before dropping right back down to a fraction of the original price. This particular one went to 0.23$ since I mentioned it before coming back down to 0.16$. Today marked a 5% drop in price when the rest of the market went UP by 1% AND this was on positive news from the Parkinson disease program! Imagine what might happen on a BAD news day.
I posted a penny stock for a good reason though: You’re young and you can take a gamble at this point as long as you learn from the eventual profit or loss.
I advocated putting a year’s worth of savings into it because I have great confidence in this stock at the 15 cents I pushed for it. I think it could be a golden ticket to free beer forever! I also will be more reserved and conservative with future picks. You need to build up towards a BALANCED portfolio. More on that in the future.
Now look just a few years ago, when it was as high as 2$. WOW! Even at 20 cents, those people took a 90% haircut. OUCHY. Those folk are not so happy. A penny stock like this one can cause heart attacks if you watch the fluctuations day by day and if you don’t watch it, one piece of news can send it to the moon or wreck it before you know what happened. Talk about the roller-coaster!
Assuming you’re young and are planning to have a good chunk of change when you retire, you’ll have to have a solid plan to get yourself from here to there! The sad truth is that most people grow up and never actually accumulate anything of note to retire on. They have fun and spend away and are left with little OR they struggle with jobs that pay poorly and (rightly or not) blame their lack of funds on the economy, politicians or corporate crooks.
So I’ve made some assumptions and some projections which I’ll share with you about what it takes to get out of poverty and into a more comfortable lifestyle using average or median US data. This being an average, it’s jilted to the upside by a small percentage of rich folks but they’re the best numbers I can find.
I’m assuming that it’s possible to get returns of 5% after tax every year in perpetuity with a strong investment program and so that’s what I set my benchmark to. 5% is enough to get you to 1 million dollars in investment gains and I figure that’s a good number to start with and a good goal to beat. There’s no point in working hard at making money if you can’t make enough to achieve a reasonable lifestyle.
Now from CNN, this is life for the median person. And so you’ve a 50/50 chance of having it even worse than this bleak picture!
The 35 year-old here is getting 183$/year from his investments… At 3.64$/beer that’s a total of 50 beers he can drink for free this year. While it’s not bad to be able get a beer over the week-end, it’s nothing to brag about.
The 65 year-old can expect 8,524.70$/year. That’s 2,341 beers for him over the course of the year… a six-pack a day.
OK, now we’re getting somewhere! According to the Dietary Guidelines for Americans, he can safely drink up to the recommended limit of 2 beers daily for moderate drinkers!
Awesome! So, his drinking habit is fully funded and he can fund his wife’s and one child’s to boot… But then he’s out of funds to pay for his beer-hall, beer-mobile and liver-meds. Not so good. He needs a better plan!
I’ll elaborate more shortly but next week is set aside for a beer-review!