A 'Fool-Proof' Retirement Plan for 20-Year-Olds

Posted Mar 7th 2011 11:00AM by Steven Halpern
Filed under: Abbott Laboratories (ABT), Lockheed Martin (LMT), Duke Energy (DUK), Norfolk Southern Corp. (NSC)

"I've put together a retirement blue print that will allow anyone who is 20 years old or younger to retire a multi-millionaire," says Steve Christ.

The editor of The Wealth Advisory explains, "This diversified portfolio, contains a transport, a utility, a tech company, a health care giant, and a defense contractor, all of which pay nice steady dividends with room for growth.

"All you need to start is $15,000 initial investment to go along with an additional $100 bucks a week in total contributions divided among the five stocks.

"What's more to play this one on the conservative side, I only added 5% per year in share price appreciation. In reality, that figure could be much higher.

"My retirement blueprint includes:

1. Norfolk Southern (NSC)

"A transport, NSC operates 21,000 mile of railroads in 22 states. The company currently pays a 2.60% dividend yield. Current Price: $62.00

"By making an initial investment of $3,000 in Norfolk Southern and adding $80 per month (along with reinvesting dividends), I project that an investor would create $409,604.00 in wealth, with a yearly dividend stream of $9,875.00

2. Duke Energy (DUK)

"An energy/utility company, Duke energy delivers power to 4 million customers in the Carolinas and parts of the Midwest. The company pays a 5.4% dividend yield.

"By making an initial investment of $3,000 in Duke Energy and adding $80 per month (along with reinvesting dividends), I project that an investor would create $1,040,461.00 in wealth with a yearly dividend stream of $50,845.00

3. Intel Corp. (INTC)

"A major league player, Intel is synonymous with the tech sector. The company currently pays a 3.4% dividend.

"By making an initial investment of $3,000 in Duke Energy and adding $80 per month (along with reinvesting dividends), I project that an investor would create $532,498.00 in wealth with a yearly dividend stream of $16,671.00

4. Abbott Laboratories (ABT)

"A major diversified health care firm, this company has important positions in pharmaceuticals, new technologies, hospital supplies, and nutritional products. This 120 year-old health care giant pays a 3.9% dividend.

"By making an initial investment of $3,000 in Abbott and adding $80 per month (along with reinvesting dividends), I project that an investor would create $628,520.00 in wealth along with a yearly dividend stream of $22,474.00

5. Lockheed Martin (LMT)

"A long time defense giant, Lockheed Martin's is involved in aeronautics, electronic weapons systems, IT systems, and space programs. Needless to say, its biggest customer is Uncle Sam. The company pays a 3.7% dividend.

"By making an initial investment of $3,000 in Duke Energy and adding $80 per month (along with reinvesting dividends), I project that an investor would create $588,102.00 in wealth along with a yearly dividend stream of $19,985.00

"In total, with this retirement plan, those who are 20 years old or younger would have $3,199,185 in retirement wealth with a yearly dividend stream of $119,850

"So whether you are young, old, or somewhere in between, now is the time to start thinking about tomorrow.

"Now more than ever, how you spend your golden years depends entirely on you. All it takes to build a nest egg is time, the power of compounding, and a steady, persistent pace."

Steven Halpern's TheStockAdvisors.com offers a free daily review of the favorite stock ideas of the nation's top financial newsletter advisors.