By Dr. Steve Sjuggerud

Dear Reader,

If you’re looking for retirement income, it doesn’t get any better than this…

With H.R. 3838, also known as the Tax Reform Act of 1986, the U.S. government created a tax loophole for specific businesses that are vital to our economy – companies that deliver oil and gas across the country in pipelines, for instance.

The government wanted to give these businesses a big incentive to expand our energy infrastructure. So the government made these particular businesses exempt from taxes at the corporate level.

This is an incredible advantage for these businesses… and their shareholders. You see, the profits earned by these companies do not get taxed twice as they would in a normal publicly traded company.  Rather, the majority of those tax-free profits go straight to the investors who then only pay taxes on their investment income.

Today, about 70 businesses qualify for this exemption under the government’s rules. These businesses must pay shareholders most of the cash they generate, in the form of dividends.

The dividend payouts are large. The investments I’ll show you today pay out 6.2% interest… but 6.2% is really understating things. The reality is, these dividends are constantly growing.

One of the businesses I’m going to tell you about, for example, has increased its dividend every single quarter in its existence.

Best of all, this investment is much less risky than stocks, but will pay you more than the stock market – I believe a lot more – over the next three years.

I consider this the ultimate “supplemental retirement income” strategy for most Americans, because:

1. It’s low risk.
2. Thanks to the Tax Reform Act of 1986, it has a great tax advantage.
3. And the payouts are high.

I expect you’ll make 12% to 14% a year… with a possible total return over the next three years of 75% or more – all in a safe investment.

Let’s start with an example of how these businesses work…

Boardwalk Pipelines: An Example of a “Supplemental Retirement Income” Business

One of the 70 government-approved tax-free companies is a business called Boardwalk Pipelines (NYSE: BWP).

You might not be familiar with the name. But if you live in the South or the Midwest, there’s a good chance Boardwalk is vital to keeping your home running smoothly.

You see, what Boardwalk does is transport natural gas through about 13,500 miles of pipelines that cover 11 states. Boardwalk simply collects a fee for every cubic foot of gas piped through its system. Business is good. Last year, Boardwalk transported more than a trillion cubic feet of natural gas. It’s stable. It’s not going away.

In the last quarter (three months), the company made about $31 million in net profits…

But what most people don’t know about Boardwalk Pipelines is that it is one of these 70 tax-free companies. So the profits it pays to shareholders are extraordinary…

In fact, in the last quarter, the company paid out $39 million to shareholders. Remember, the company’s net profits were just $31 million… so Boardwalk paid out more to shareholders than it recorded on its books as net profit.

How is this possible? Well, to keep its tax-free status, Boardwalk Pipelines is obligated to pay, on a quarterly basis, all of its “available cash” to shareholders. And generally, the “available cash” far exceeds what the company records in its books as net profits.

Boardwalk Properties is part of one of the largest and most diversified financial companies in America (Loews Corporation). Since becoming a tax-free business about a year ago, Boardwalk has increased the size of its paychecks to shareholders every quarter. The checks keep getting bigger and bigger.

Since the beginning of 2006, investors in Boardwalk Properties are up 82% already, including dividends. You see, this type of investment allows you to buy these tax-free stocks now, while you’re working and while your income is high, and you can defer your taxes until a time when you’re retired, and your income is lower. Even with such a rise, the dividend yield is still a tax-deferred 5.3%. (You’d have to earn about 7.5% interest in a taxable account to match that!)

There are more total returns to come here… If you want to lock up steady and increasing income for the next five years and beyond, you could buy Boardwalk Properties…

>>> But I’ve found an even better way to buy these special government-approved tax-free companies than buying directly.

I’ll get to that in a minute. First, let me explain why I expect these companies will do even better than 12%-14% a year over the next three years…

You’ve probably heard about what I call the Canadian Income Trust Debacle, mentioned in DailyWealth.

On Halloween of this year, the Canadian government said all the tax-free income trust companies will begin paying corporate taxes by 2011. Shares of Canadian income trusts fell instantly, and hard. The Canadian government killed billions of dollars overnight. It appears that the tax rate for Americans invested in Canadian income trusts could be in excess of an additional 40%.

It was too good to be true… Too many companies applied for income-trust status, and the Canadian government began to fret about lost tax dollars.

Canadian income trusts used to be a great deal for U.S. retirees. Not anymore. (We think something like this happening here is very unlikely… unlike in Canada, the U.S. Tax Reform Act of 1986 was very specific in which companies could avoid paying corporate taxes. That’s why there are only about 70 of them today.)

Meanwhile, these 70 U.S. government-approved tax-free businesses do not have to pay taxes… and you don’t either, at least for a long while.

Right now, these government approved tax-free companies are a much better deal than Canadian Income Trusts, or even REITs. Plus, the underlying growth potential is much higher, too… For example, Boardwalk Pipelines has already increased its dividend by 11% since May alone. In theory, increases in dividends should lead to similar increases in share prices.

When you add 6% dividends for the industry to growth of 6%-8% a year, you’re looking at the potential for 12%-14% annual returns, if nothing changes.

But I think things will change and cause the share prices of these government-approved tax-free businesses to soar, for a few reasons…

1. Investors are leaving Canadian income trusts, and they’re getting nervous about REITs. Where are they going to put their money? They haven’t yet discovered what I’m sharing with you today. But they will…

2. Baby boomers are tired of regular stocks and real estate, and they want stable income. Where are they going to put their money? Again, they haven’t discovered these tax-free businesses yet, but they will…

3. Until recently, institutional investors really couldn’t invest much money in these. But a new law was recently passed, allowing institutions (including the huge pension funds and mutual funds) to invest up to 25% of their assets in these tax-free companies. Until recently, individual investors made up 70% of the shareholders of these special businesses. I expect that will change in the coming years as institutions pile in, driving the share prices up…

4. Best of all, you will be able to defer income taxes on your dividend income from these tax-free businesses—thanks to a strange quirk in the tax structure.

Let me explain…

The way I prefer to invest in these is to buy a closed-end fund that invests solely in these types of companies.

By owning a fund that trades exactly like a stock, the IRS assumes it’s like any other fund or cash in the bank… the fund receives all the dividends, and then it pays one dividend to you quarterly.

The funds that hold these tax-free companies offer many more benefits as well… You get experienced management and higher yields… the funds can invest in private deals (which may have better yields… and the funds can (and do) use leverage to boost the yield to you.

Fortunately, you still get the big benefit – you generally won’t have to pay taxes right away on the dividends. They’re not taxable until you sell.

>> Out of the 70 “supplemental retirement income” companies, there are only four I recommend you buy as soon as possible… and if you buy only one, I’ll show you the very best one of these companies to buy right now.

I expect these businesses will soar in price. They are ridiculously cheap compared to the high-yield alternatives – such as REITs, Canadian income trusts, and any other income ideas. They will soar as individual investors find out about them. And they will soar as more institutions invest in them…

These master limited partnerships, as the IRS classifies them – or “supplemental retirement income” companies, as I call them – are a little investment nirvana right now, with high tax-deferred yields in a stable, necessary business.

Invest in them now, before everyone else figures it out. The best way to do it is through these funds.

You’ll collect a tax-advantaged 6% dividend, with significant room to grow. If all goes right and the share prices go up, you could see total returns in the 75% range over the next three years.

If this sounds like the kind of investment you’re interested in, here’s what I recommend you do…

My name is Dr. Steve Sjuggerud. It's a Norwegian name pronounced "sugar-rude," although I was born and raised in the United States.

Today, after spending about a decade in the institutional investing world (where I worked as a stockbroker, mutual fund Vice President, and then a hedge fund manager), I now publish a monthly advisory letter for retirees, and people looking to retire. My monthly letter is called True Wealth.

My focus with True Wealth is to find safe, simple investments you won't hear about anywhere else… like the 4 government-approved, tax-free “supplemental retirement income” companies I told you about.

I believe most people take way too much risk when they invest their money. My goal is to show you much safer opportunities—where you can make a small fortune at the same time.

If you are interested in getting the full details on the 4 “supplemental retirement income” companies—and the best single one to buy now—I encourage you to try a subscription to True Wealth.

All the details – everything you need to know – are in my new December 2006 issue.

With True Wealth, I guarantee I will find you safe and profitable investment opportunities you won't hear about anywhere else.

For example, here's another extraordinary opportunity I've been researching for the past few years, which most investors have never considered…

I'm strongly recommending another smart move for people who are either retired or thinking about retiring…

It's a unique stock market investment that gives you all the upside potential of the stock market–and literally none of the downside risks.

I'm talking about an investment called a "MITTS," which were created by Merrill Lynch, the 2nd biggest investment firm in America. MITTS stands for "Market-Index-Target-Term-Securities."

Sounds complicated, I know… but MITTS are one of the simplest and safest investments available today. Let me explain…

You can buy a MITTS from any broker. It will cost you around $10.

If you buy a MITTS and the stock market goes up 12% next year, you get your original investment back, plus 12% gains. No big surprise there.

But, here's the best part. Suppose you buy a MITTS for $10 and the stock market goes DOWN 25% next year. You lose nothing. You still get back your original $10, because Merrill Lynch will back up your investment up to $10 a share.

I know… MITTS sound too good to be true, but I assure you, there's no catch… and they are very real.

Merrill Lynch created MITTS for their wealthy clients. Now they're available to the general public. In fact, you will find them listed every day in The Wall Street Journal.

The question is, why would you want to have money sitting in a money market or savings account, earning a paltry 3% per year, when you can own super-safe MITTS that has all the potential gains of the stock market, with literally none of the risks?

If you've got money you simply can't afford to lose… but you still want to catch any gains when stocks go up, MITTS are probably the perfect investment for you.

It's not surprising that MITTS have started to get a lot more attention from the financial press recently…

>> Business Week magazine recently said: "The stock market has no sure things, but MITTS are about as close as you can get… Think of MITTS as stock market plays for chickens."

>> Money Magazine's Jean Sherman Chatzky added: "MITTS sounded pretty good to me, which made me wonder: Since they've been around for six years, why haven't I read more about them? Perhaps investors weren't interested in downside protection because they didn't believe the markets could go down. How times change."

MITTS are perfect if you want to protect your wealth, but still see gains if the stock market goes up. If you want to learn more about how to begin investing in MITTS right away, I've prepared a detailed report called MITTS: The Upside of Stocks, Without the Downside Risks.

In this report, I'll explain exactly how MITTS work, and how to buy them. Most importantly, I'll show you which 3 MITTS offer you the very best deal right now.
If you'd like a copy of this Research Report, I'll send it to you free, simply for taking a trial subscription to True Wealth.

Is this type of "alternative" investment right for you? All I can tell you is that it's much safer than ordinary stocks and bonds right now. Let me tell you a little more about my investment philosophy so you can decide if you want to have a look at my work…

I spent the first half of my investment career working at big Wall Street institutions.

Right out of college, I got a job as a stockbroker. I learned pretty quickly that a broker's main job isn't to help his clients make money… but to simply get more clients.

My next job was working for a global mutual fund. I was promoted to Vice President, in charge of running a $50 million international fund. It turns out this job involved a lot of sales too. I had to spend several hours every day trying to sell the fund to potential investors.

Then, I worked for two different billion-dollar hedge funds, and earned my PhD in Finance. I learned a lot in these positions, but I realized the hedge fund world still meant a lot of schmoozing, selling, and meetings… the part of the investment business I want to avoid.

So about 5 years ago I left all of that behind, and started True Wealth, my own private advisory for retirees and people who want to retire soon. In that short time, we've grown to become one of the top 3 investment letters in America. We have readers in more than 125 countries.

I think we've done so well because month after month, my goal is to simply show you safe and profitable investment strategies you won't hear about anywhere else.

My passion is research… and finding great investments no one else is talking about. I make more than a dozen research trips every year all over the world. In the year, for example, I've traveled to Switzerland, London, Seattle, New York, and Vancouver… including two months spent in Australia, New Zealand, Malaysia, and Japan, each time to investigate a particular investment idea.

I now spend all of my time doing what I love. I simply find great investment opportunities… then I invite people like you to have a look at my research. If it works, you'll probably keep reading… if not, you can simply cancel, and can even get your money back.

To me, that's how it should work in the investment world – no secret interests or hidden agendas.

What I've found after working with literally hundreds of thousands of retirees and people looking to retire, is that most people simply don't realize there are safer and more profitable investments than ordinary stocks, bonds, and real estate.

I promise you this: True Wealth is like no other investment newsletter you have seen before. I guarantee you will learn about unique opportunities here that you will not hear about anywhere else.

Is True Wealth for you? I can't say for sure, but I believe the research my team and I do is better than anything else out there, on or off Wall Street. Our track record backs this up…

For example, I'm particularly proud of the investments we've found during the last bear market that made our subscribers very nice gains, while most investors were taking a beating…

>> During the last bear market, I recommended a retail business with operations in all 50 states, plus Puerto Rico and the U.S. Virgin Islands. In 7 DAYS, readers who followed my advice could have made 300% PROFITS.

>> A few days later, I recommended that folks in my special trading alert buy one of the biggest electronics firms in the world. 19 DAYS later, this recommendation realized a GAIN OF 341%.

>> A few months later, I recommended a trade on one of America's most important telephone and Internet service companies. In 22 DAYS investors who took this advice could have made 111% PROFITS.

I know… anyone can cherry-pick a few winners. But our overall track record is unmatched as far as I know. Right now, for example, as of November 2006, we have 26 recommendations in our current open portfolio… with only two that have lost money (one is down 10%, the other is down 2%). The rest are all showing positive gains… with 18 of those doing very well.

In fact, our True Wealth research has done so well that many investment professionals have started following our recommendations for themselves and their clients…

• Subscriber Gary Munson, who's a Certified Financial Planner and a Senior VP at one of the world's biggest investment firms, told us: "After being in the investment business for almost 24 years, I feel I'm fairly qualified to evaluate investment recommendations as I am a financial advisor and portfolio manager. Steve's recommendations and the way he thinks are absolutely top-notch. His newsletter recommendations have become a major arrow in my quiver that I am able to utilize in my own clients' accounts. I read a lot of newsletters and other literature constantly looking for investment ideas, and Steve's TRUE WEALTH ranks at the very top."

• Subscriber Brian Richards, a full-time equity trader from San Francisco, wrote to say: "I KNOW I will have much more money for retirement because of Dr. Sjuggerud's True Wealth. It is comforting to know that Steve has no agenda other than to make me money."

• Andrew Lawson, from Charleston, SC, said: "I was a stockbroker for 19 years. I trained with the 4th largest NYSE member firm at that time. I learned more from Dr. Sjuggerud in the last 8 months about the wide universe of investments than I learned in 19 years as a broker… Steve's recommendations are conservative, they make sense, and they regularly make large profits - much more than one would expect from safe investments."

But how can you know if True Wealth is right for you? Here's what I propose…

I would like you to have the next 6 months to evaluate True Wealth, so you can take your time deciding whether or not it's right for you. In fact, here's what I propose...

First, let me know if you would like to try my True Wealth research. As soon as I hear from you, you will receive online access to:

• The December 2006 issue of True Wealth, which details the 4 best government-approved tax-free “supplemental retirement income” companies out of the 70 available… and the very best one to buy right now. With just one of these investments, you could easily make over 75% gains in the next several years… including 6%-8% dividends.

• Research Report: MITTS-The Upside of Stocks, without the Downside Risks

• Plus, every month you'll receive my True Wealth advisory letter, delivered to you on the third Friday of each month, first by e-mail, then by regular mail too.

• And I'll also send you my daily e-mail updates, called Daily Wealth. Here, I keep you updated with what's in our portfolio, and tell you what I see happening in the markets. Daily Wealth will arrive in your inbox every day before 9 a.m.

Six months should give you plenty of time to decide if you like my research and my investment philosophy. If so, do nothing... and I'll continue to send you the next 6 months (a total of ONE YEAR) of my True Wealth research every month. If you decide True Wealth is not for you, simply let me know by phone, fax, or e-mail, and we'll issue you a full refund. Remember, you have a full six (6) months to decide.

How much does True Wealth cost? And how can you get started?

Before I give you all of the specifics, let me tell you about one more unique angle to pay for your retirement, which most Americans have never considered...

About two years ago, as part of my research for True Wealth, I made an amazing discovery.

In short, I found that by investing in trees, in the form of "professionally managed timberland," you can actually make safer profits and income than you can with ordinary stocks.

I was skeptical about my early findings... so I hired Leonard Mayer, one of the world's leading timber experts. Together we traveled all over the world looking at timber projects. Leonard has spent the past 30 years in this business, and when a big company needs to put an accurate value on a tract of timberland, Leonard is the man they call.

Leonard and I traveled to Florida, Georgia, and the Pacific Northwest. We even flew down to Argentina. What I learned during my research is incredible...

1. Timberland has actually beaten the stock market since 1960 (as far back as data goes). Stocks did extremely well in that time... up nearly 12% a year. But the total return on timberland was even better, at nearly 14% (study by James W. Sewall Company).

2. Timber prices go up, even when stocks go down. The trees don't know about recessions... or "the war on terror." They simply keep growing 6% to 8% per year. Factor in increasing prices, inflation, and the increasing value of the real estate, and it's easy to see how timber companies beat the overall stock market, year after year, with less risk.

3. You can actually GET PAID to own timberland while you own it, and you can buy and hold it just like an ordinary stock on the U.S. stock market. The best timberland buy in North America, for example, will pay you an 8% dividend, while you watch the share price steadily climb.

You may think of timber as a slow moving asset. But the returns can be extraordinary. For example, I have two favorite timberland investments right now. One has returned an incredible 8,534% over the past 16 years, including dividends. That means a simple investment of $10,000 back then would be worth close to a $1 million today.

In my recent Research Report called Timber-The Best Investment for the Next 7 Years, I explain everything you need to know. I'll show you:

• Why timber is safer and more profitable than regular stocks

• Which timberland is the most valuable

• How a timber operation and a timber investment works

• Most importantly, which 2 North American timber investments offer you the best investment opportunity in the world right now. You can buy both of these investments just like a regular stock, through any ordinary broker

Best of all, when you take a trial subscription to my True Wealth newsletter, you'll get a copy of Timber–The Best Investment for the Next 7 Years, absolutely free.

The point is, if you are retired... or if you are thinking about retiring, True Wealth can help you live a lifestyle you may not have thought was possible.

True Wealth costs only $49.50 for a whole year of research and reports. Is it worth paying the equivalent of just $4 a month to learn about safe and profitable investment opportunities you'll hear about nowhere else? I think so, but here's what a few paid subscribers have told me recently...

** "I have been following Dr. Sjuggerud's investments for several years. Only wish I had known him early in my life. My $600,000.00 is now worth well over a $1,000,000.00. I think that I am almost ready to retire."
– Clyde Lafond, 68, Burbank, CA

** I have been reading Dr. Sjuggerud's reports for over six years. I took my wife's portfolio from her advisor and quadrupled it."
– R. C. Beck, M.D., 80, retired cardiac surgeon

** "Of all the people I follow... Dr. Sjuggerud is, by far, the best at what he does...make me money! I have a 7-figure portfolio with many years of investing acumen. I'm up over 100K on his recommendations (in less than a year). No one comes close."
– Raymond Martin, 53, former news producer at CBS

When you sign up for a trial subscription to True Wealth today, you will receive:

• 12 Monthly True Wealth Newsletter reports, delivered on the 3rd Friday of every month. You'll receive a copy first by e-mail, then by regular mail too – including the “supplemental retirement income” companies I told you about.

• Research Report #1: MITTS–The Upside of Stocks Without the Downside Risks

• Research Report #2: Timber–The Word's Best Investment for the Next 7 Years

• Daily Wealth, which you'll receive by e-mail first thing every weekday. Here, I keep you updated with what's in our portfolio, and what's happening in the markets.

• And you'll also receive a members-only e-mail called THE S&A DIGEST: A daily report that brings you "inside" the Stansberry & Associates world of information, investments, travel, politics, and friendships. And, because it's for subscribers only... from time to time we share a few of our group's very best stock recommendations.

• You'll also have instant on-line access to all the True Wealth research done over the past five years - including everything described above. For example, you'll get a research report called The 13.5% Government Bond. And another called the True Wealth 10-Year Forecast, which describes the perfect place to put $10,000 and not think about it or touch it for the next 10 years. You'll learn about an unusual gold investment that went up 665% during the last gold bull market... a unique kind of Certificate of Deposit (CD) that could give you safe 25% gains next year... and much more. You'll also have subscribers-only access to my message board that lets you communicate with other subscribers.

Take the next six (6) months to have a look at my work closely. If you don't agree it's the safest and most profitable investment advice you've ever received, please contact us by phone, e-mail, or regular mail, and I will see that you get a full refund for the money you've paid.

The longer you wait to get started with these investments, the less money you will have for retirement. To order, Subscribe Now

Sincerely,

Dr. Steve Sjuggerud, PhD

P.S. One more thing. My specialty is super-safe and profitable investments for folks who are at or near retirement age. But occasionally, I find a speculative opportunity that is too good to pass up. For example, right now, there's a stock selling for about $1 a share, on the NASDAQ exchange.

In the past, this stock has traded for as much as $50 a share. When the commodity this company controls goes up... the share price skyrockets. And it's going up big-time right now. If you like to speculate with a very small percentage of your portfolio, this is my #1 recommendation. You could easily make 300%, possibly much more.

When you sign up for a trial subscription to True Wealth, you will also receive online access in the next several hours to my report called My Favorite $1 Stock. For the complete details, click on the "Subscribe Now" button below.

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