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So, is David Eifrig’s Retirement Millionaire really good?
Can it really help you grow your retirement fund?
When it comes to your retirement money, I think it’s very important to choose wisely because no one wants to risk their retirement.
Who Is Dr. David Eifrig?
Dr. David Eifrig received his BA from Carleton College in Minnesota, and his MBA from Northwestern University’s Kellogg School of Management.
Then, he went on to work as a derivatives trader at Goldman Sachs.
He graduated from Columbia’s pre-medicine program and eventually his MD from the University of North Carolina at Chapel Hill.
Dr. David Eifrig also completed a research fellowship in molecular genetics at Duke University and became a board-eligible eye surgeon.
While he was at Duke University, he was approached by Stanberry Research’s founder Porter Stanberry to write newsletters for its subscribers.
Later on, in 2008, Dr. David Eifrig joined Stanberry Research as the editor of the newsletter “Retirement Millionaire”.
Also, he launched several other newsletters such as Retirement Trader, Income Intelligence, and most recently (July 2022) Prosperity Investor.
When I was doing a bit of background research on Stanberry Research and its founder.
Here’s what I found online.
In 2003, Porter Stansberry was sued by the SEC for defrauding subscribers of a newsletter Stansberry wrote under the name ‘Jay McDaniel.’
The judge found Porter Stansberry guilty of intentionally defrauding his clients and was additionally found guilty of price manipulation.
Porter Stansberry appealed the court’s decision but the guilty verdict was upheld.
In August 2007, the court found Stansberry guilty and fined him $1.5 million for security fraud.
What Is Inside Retirement Millionaire Monthly Newsletter
Inside the Retirement Millionaire monthly newsletter, Dr. David Eifrig normally talks about health and lifestyle tips for retirees as well as the current economy and stock market.
In the last part of the newsletter, he discusses stock recommendations in the current portfolio.
Generally, there are 20 to 25 stocks in the model portfolio.
Dr. David Eifrig suggests the holding period for these stocks is about two years on average.
For profit-taking, it’s entirely up to Dr. David Eifrig’s discretion on when to exit a stock for a profit.
There is also a hard stop of 25% for each stock recommendation.
What that means is that you need to sell the stock once the stock has fallen 25% from its recommended Buy price and take a loss.
Personally, I think putting a hard stop is only a good idea if you are TRADING stocks instead of Investing in stocks.
For trading, you are trying to profit from the short-term volatility in the share price based mostly on technical analysis or price action.
As no one can predict the stock price movement in the short term, it’s prudent to put a stop loss to limit your losses.
For investing, you are buying the underlying businesses because you believe in their fundamentals and future growth potential.
To exit the stock, either you think that the business is currently overvalued or the business fundamentals have changed for the worse.
Moreover, stocks are volatile.
In the first half of 2022, you have witnessed many stocks crash more than 50% in a span of a few months.
If you are a retiree or going to retire soon, I don’t think it’s a good idea to invest a large portion of your money in individual stocks.
Anything could happen with an individual company.
All it takes is negative news for the stock to tank.
It might take a long time for it to recover if it’s going to recover at all.
So, if time is not on your side, I think you could consider stock index funds because it is less volatile than individual stocks.
Lastly, I think it’s never too late to learn about investing and do stock research yourself before putting your hard-earned money into stocks that you don’t have any idea of.
Here are the two stock research and analysis platforms that I recommend:
Dr. David Eifrig’s Other Products
Dr. David Eifrig also has another product called “Retirement Trader” that you need to pay separately to access.
On its website, it’s described to help you “use options to construct safe and reliable income streams.”
First of all, options are risky if you don’t have a good understanding of how to use them.
So, I feel that the “safe and reliable income streams” claim is exaggerated.
His strategy is to sell covered calls on stocks that you own and sell naked puts.
Any strategy can have winning trades and also losing trades.
If you don’t understand the risks involved, you can get into a lot of trouble just for a small premium on naked puts.
Here’s a link to a very good YouTube Channel on options investing if you are interested.
Like I always say, it’s wise to learn about investing and then make your own decisions.
Relying on anyone to make your investment decisions is not going to work out well because they don’t care about your money and future well-being as much as you do.
Retirement Millionaire Pricing
So, what do you get by joining Retirement Millionaire?
How much does it cost?
There are two different pricing plans:
- Standard: $49
- Premium: $79
Here’s what you would get from Standard Subscription:
- 12 monthly issues of Retirement Millionaire
- Special Reports
- Ebook called “Retirement Secrets”
The difference between a Standard subscription and a Premium subscription is that you get also get 12 monthly issues of the “Stanberry Innovation Report” and some more special reports on blockchain and cloud computing.
So, is it worth paying for Dr. David Eifrig’s Retirement Millionaire?
The subscription is not expensive, but personally, I am not comfortable buying newsletters that are associated with Stanberry Research after learning about the fraud lawsuits.
Alternatives to David Eifrig’s Retirement Millionaire
Motley Fool Stock Advisor is focused on giving stock recommendations that are high-quality companies with long-term growth potential, which suits my investment philosophy.
The reason why I subscribe to Stock Advisor is to get stock ideas as Motley Fool has a proven record of finding stocks with massive upside potential.
Personally, I don’t buy every single stock recommendation.
What I do is that if I find any interesting stock pick, I will do my own research again.
First of all, let’s take a look at their track record as of 9th March 2023.
Below is the performance comparison between Motley Fool Stock Advisor and S&P 500 between 2002 and 9th March 2023.
As of 9th March 2023, average Motley Fool Stock Advisor recommendations have returned over 386% since inception while S&P 500 has returned 115%.
In short, the Motley Fool Stock Advisor has outperformed the market 3 to 1.
That’s a HUGE difference in returns.
But, what about its individual stock picks?
This metric is important because you might not be buying every single stock recommendation made by Stock Advisor.
Below is a table that shows you the performance of individual stock picks over the years.
As of 7th Dec 2022, Motley Fool Stock Advisor has had 164 stock recommendations with 100%+returns.
Here are just some of their best-performing stock picks:
- Amazon: it’s up 19,806%*
- Netflix: it’s up 23,901%*
- Walt Disney: it’s up 632%*
- NVIDIA: it’s up 16,423%*
- Shopify: it is up 4,107%*
- United Health Group: it is up 2,338 %*
[*Returns as of 31st Dec 2021. Past performance is no guarantee of future results. Individual investment results may vary. All investing involves risk of loss.]
Will the Motley Fool Stock Advisor always be right about their stock recommendations?
No, because no one can be right about their stock picks 100% of the time.
Let me sidetrack a bit here.
If any stock picking service tells you that they have a close to 100% success rate on their stock picks and can guarantee you high investment returns, you should definitely stay away.
Even Warren Buffet has loss-making stocks in his portfolio, but he still achieves above-average returns because a few big gainers in the portfolio can make up for the under-performers.
What I like about the Motley Fool Stock Advisor is that they are very open and transparent about their bad investments.
As a member, I can see the performance of ALL its past and current stock recommendations (even for closed positions).
For some other stock-picking services that I’ve tried, they don’t publish the performance of all their past and current stock recommendations, so it’s not easy for you to find out their true track record.
For example, the year 2022 has not been good for high-growth stocks because of rising interest rates and high inflation.
So, you can see a lot of Motley Fool Stock Advisor’s stock recommendations are not doing very well.
The truth is that other stock-picking services are not doing well either because of the stock market crash.
Do I still think it’s worth subscribing to the Motley Fool Stock Advisor?
My answer is yes.
The stock market goes up and down all the time.
Every few years, there is a bear market.
According to Peter Lynch who is a legendary fund manager, far more money has been lost by investors trying to anticipate correction than lost in corrections themselves.
In fact, I think the bear market is the BEST time to start investing in the stock market.
During a bear market, it’s more likely to find great businesses selling at very cheap prices because people are just selling out of fear when the business is still fundamentally sound.
A market crash is a time when huge wealth transfers from irrational and emotional investors to patient and rational investors.
So, if you are thinking of getting into stock investing, I highly recommend the Motley Fool Stock Advisor because I think there are a lot of well-researched stock recommendations.
In terms of pricing, Motley Fool Stock Advisor is also much more affordable.
Usually, its annual subscription is $199.
Right now, there’s a special limited-time $89 offer* for new members for the first year when you click the link here to try it out for 30 days with a Membership-Fee-Back Guarantee. (*Billed annually. Introductory price for the first year for new members only. First-year bills at $89 and renews at $199)
So, for $89 a year- that’s just $1.70 a week – you can gain unlimited access to their library of expert stock recommendations which are carefully selected to help you grow your wealth.
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