Hello, and thanks for stopping by.
In this post, we’ll be discussing Tim Plaehn’s 36-Month Accelerated Income Plan that he says could help you “generate a $4,804 income stream,” starting with “as little as $25,000.”
Is it the real deal?
The 36-Month Accelerated Income Plan is essentially a method of investing for high-yield dividend income developed by Tim Plaehn of Investors Alley. And it comes with a $49 subscription to The Dividend Hunter service.
Both the “plan” and service are legitimate, but there’s no guarantee it will help you “pay your bills for life” or “generate a healthy 5-6 figures of income” each year. And it’s not likely to suit investors interested in growth investing since the whole thing is about generating income.
Either way, Tim Plaehn is an expert investor with 30 years of trading experience, so it could be worthwhile, especially if you’re either in or approaching retirement.
Read on to learn more.
Who Is Tim Plaehn?
Tim Plaehn is the creator of The 36-Month Accelerated Income Plan.
He’s also the lead investment research analyst for Investors Alley, a financial publishing company based in New York. And according to his profile on the company website, his specialty is income and dividend investing.
Before working for Investors Alley, Tim says he was an F-16 fighter pilot for the United States Air Force and that, while he was a pilot, he obtained a degree in mathematics.
After serving in the air force, Tim says he pursued a career as a stockbroker and financial advisor for eight years. And sometime after this, he got into financial education, where his primary focus is currently on helping his readers generate income through the stock market.
According to Tim, he’s dedicated his career to “one specific type of stock, which generates regular income every month.” And that is high yield dividend stocks (more on this shortly).
Tim says he uses the discipline and focus he learned as a fighter pilot and his background in mathematics to find the best opportunities among dividend stocks and that he shares his top picks with readers of his services.
He’s probably best known for his “The Dividend Hunter” newsletter. And that’s the service he’s pitching with the “36-Month Plan” presentation. However, he also runs a service called Weekly Income Accelerator and another one called Monthly Dividend Multiplier.
And according to Tim, he has “over 6,000 happy premium readers,” so he must be doing something right. He also lists numerous testimonials from readers who appear to be benefiting from his work and has contributed to many well-known finance sites.
For example, USA Today, Newsmax Media, Wikinvest.com, and Seeking Alpha. However, from what I can tell, his most recent editorial contributions can be found on MoneyShow.com.
None of this means you’re guaranteed to make money following his recommendations or that everyone will enjoy his services. However, based on my research, Tim Plaehn is a genuine expert in dividend investing and appears to operate ethically.
In the next section, I’ll walk you through what The 36-Month Accelerated Income Plan is all about. Then we’ll dig deeper into how it works and talk about the Dividend Hunter newsletter.
What Is The 36-Month Accelerated Income Plan?
Tim Plaehn describes The 36-Month Accelerated Income Plan as a “36-month plan where you could create $4,804 in monthly income that continues to grow each year.”
And he says all you need is $25,000 to get started:
Starting with as little as $25,000, you’ll be able to generate a healthy 5-6 figures of income annually if you follow what I’ll share with you.Source: https://www.investorsalley.com/landing/36maiptdh
So the core purpose of the 36-month plan is to help you generate income as an investor. Specifically, to help you earn dividend income.
What’s a dividend?
Dividends are periodic payments made by publicly listed companies to their shareholders.
How much you earn depends on things like how many shares you hold, the company’s dividend per share, and how often they pay (for example, monthly, quarterly, or annually).
However, to give you an idea, this article on Forbes points out that the annual dividend yield of the S&P 500 for most of the 20th century ranged between 3% and 5%. Meaning, on average, a $25,000 investment would have netted a dividend investor between $750 to $1,250 for the year.
How does Tim come up with the $4,804 per month figure?
Well, for starters, based on what he says in the presentation, Tim aims for much higher yields than 3-5%. Here’s a quote from the Investors Alley website:
I’m focused solely on high-yield dividend stocks.
These are companies that pay above-average dividends each quarter (some every month). It’s not unusual to see 7.9%…11.6%…even 21.2% yields.
And second, even though he says you can start with as little as $25K, to make anywhere near $4,804 per month, you will likely need a lot more than this.
Third, Tim leverages a strategy known as DRIP (Dividend Reinvestment Plan) and says, “the DRIP method could literally double your portfolio in under 36 months.”
That seems pretty optimistic, but this is a fairly common strategy finance experts use to increase the income generated from dividends.
How does a DRIP work?
The way the DRIP method works is similar to earning interest on the money you leave in a bank account. Instead of withdrawing the interest each month, you leave it in your account, which builds on the amount of interest you earn the next month.
Similarly, with the DRIP method, you can essentially opt to reinvest it by purchasing more shares instead of spending the dividend income you make as a shareholder. And as you keep doing this, it can increase your dividend income over time.
There’s more to it than that, but that’s the gist of how it works.
And this is part of the core strategy behind The 36-Month Accelerated Income Plan, which is all about helping you generate income from dividend stocks.
In particular, the 36-month plan is about helping retirees generate income to pay the bills.
Tim Plaehn says he uses a “calculated, math-driven solution” to help his followers automatically pay the bills for life. So his system is more about maximizing your income to comfortably pay the bills during retirement than chasing significant stock market returns.
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The 36-Month Accelerated Income Plan (How It Works)
The core idea behind Tim Plaehn’s “Accelerated Income Plan” strategy is to help subscribers generate income through dividend stocks. In particular, folks planning for retirement.
In the presentation, he cites a Motley Fool article (posted on postcrescent.com) that states that the average cost of retirement is $738,000.
And he talks about how the biggest fear most retirees have is running out of money, followed by a crash in the stock market. Which makes sense because either of those things could mean the difference between an enjoyable retirement and a stressful one.
In any case, he then talks about how the average investor is chasing capital gains (or returns on stocks they hold) but says this is “not predictable and not reliable.” And states that the “best-case scenario for the next ten years is the S&P 500 growing just 4% a year.”
He then talks about how, even with $250K, if your shares only grow at around 5% each year, that could leave you broke in 10 years if you’re withdrawing a modest $2,500 per month for bills.
If you have $250,000 now, at 5% growth, but withdrawing your $2,500 per month to use for bills…
You’re out of money in 10 years.
He paints a pretty alarming picture. And he’s not the only one. I’ve come across other gurus in the financial education space who share similar concerns about retirees.
Also, according to this article on Charles Schwab, the estimated annual expected return for U.S. large-capitalization stocks from January 2021 to December 2030 is 6.6%.
That’s a bit higher than the 4-5% Tim uses in the presentation, but these are all just estimates anyway, and the point he’s making is worth considering. And that is, if you don’t figure out a way to outperform the market somehow, your retirement could be less than ideal.
And according to Tim, the solution is his “36-month income battle plan” that shows you how to pay the bills for life through high yield dividend stocks.
How does his “plan” work?
Tim says his entire 36-month plan can be summed up as follows:
1. Find healthy high-yield dividend companies
2. Buy when the prices are low
3. Collect the dividends & use the DRIP method
4. As you find more plays, add them to your portfolio and/or grow your current positions
5. Sell when the price gets too high or the yield gets too low
6. Automatically pay your bills for life
So it essentially involves finding the best, highest-yield dividend companies, buying when prices are low, maximizing gains with a DRIP, and selling when the time is right.
How does he find such high-yielding companies?
Tim says that the companies he recommends usually aren’t “household names” as these often pay low dividends of between 1-3%. Instead, he says he strives to “dig deeper to find income-producing companies” and spends much of his day “in the trenches,” talking with executives and attending conferences to find the best companies to invest in.
He also says that he specifically looks for companies projected to grow over the next 3-5 years and those with dividends that have a track record of increasing or staying steady.
As for the sectors he focuses on, Tim says he looks for “companies in the most important areas of society” like real estate, energy, and finance.
Why does the “plan” go for 36 months?
Tim says the entire goal of the plan he created is to lay the groundwork for future income and that 36 months is the “ideal timeframe to build an ever-growing money tree.”
Beyond that, according to Tim, “you’ll have a virtually passive income stream” that only needs checking once or twice per month.
How do you access Tim Plaehn’s 36-month plan?
The only way to access the 36-Month Accelerated Income Plan is to join The Dividend Hunter since it’s essentially bundled with this service as a bonus.
What Is The Dividend Hunter?
The Dividend Hunter is a monthly investment newsletter service that focuses on high-yield dividend stocks. Each month, you receive a new newsletter issue, including Tim Plaehn’s latest investing insights and tips on becoming a successful dividend investor.
You also receive his latest dividend stock picks, which he says you will need for your 36-month plan.
One way to think of it is that the 36-Month Accelerated Income Plan is the “blueprint” of Tim Plaehn’s strategy, while the newsletters give you his latest insights and picks.
In any case, on top of the plan and newsletters, subscribers also receive “The Monthly Dividend Paycheck Calendar.”
According to Tim Plaehn, it gives you the “exact dates for when you need to be an owner of the stocks in the calendar and when you should expect your paychecks.”
It’s essentially a “map” that helps you track which companies are paying dividends out of the ones he recommends and when. And he says he updates it every month as his stock recommendations are updated.
He also says that, once you’ve completed the 36-month plan, “your entire financial future will be built around this calendar.” So it’s a key part of Tim’s investment strategy.
To sum it up, these are the main aspects of The Dividend Hunter service:
- The 36-Month Accelerated Income Plan
- Monthly issues of The Dividend Hunter newsletter
- The Monthly Dividend Paycheck Calendar
And depending on which page you join through, you also get some bonus resources.
For example, bonus reports, weekly updates, live training sessions, and a Dividend Forecaster tool to help you work out how much income your investments are likely to generate.
All in all, it’s a pretty comprehensive service.
And it only costs $49 to join. Tim says it’s usually $99 per year, but as part of the “36-month plan” presentation, he’s reduced it to $49 for 12 months. And according to the Investors Alley website, it comes with a 365-day money-back guarantee.
Bottom Line – Is It Worth It?
Tim Plaehn’s Accelerated Income Plan is a 36-month plan that comes with a subscription to The Dividend Hunter. And it’s primary focus is helping folks either in or entering retirement earn regular income from high-yield dividend stocks.
On the one hand, Tim seems like one of the more ethical, less sensationalist finance gurus in the space. And based on my research, most of the reviews about him and his services are favorable. As are those for Investors Alley, the publishing company he works for.
The Dividend Hunter service looks quite comprehensive, too. Especially for $49. So if you’re searching for a reputable dividend investing advisory that you can really sink your teeth into, and a “plan” to help you pay the bills during retirement, this could be worth checking out.
That said, there are a couple of points I think are worth mentioning.
First, even if the service is legitimate and the strategy is considered “safe,” you can still lose your shirt investing for dividends. Regardless of the sector, the method you’re using, or whose advice you’re following, all investments carry risk.
And second, while earning $4,804 per month is possible with dividends, there’s no guarantee you’ll make this much. And I’m no expert on dividend investing, but in my mind, you’d need a lot more than $25,000 to earn mid-four figures each month.
Why? Because earning $4,804 from a $25,000 investment works out to about a 19.2% yield each month, and most companies don’t pay anywhere near that amount in an entire year.
I guess it’s possible Tim Plaehn really is that good at what he does, but either way, I don’t think it’s a good idea to join any service expecting to make such high returns.
Anyway, thanks for reading. I hope you found this helpful, and if you’d like to share your experience with the 36-month plan or Dividend Hunter service, feel free to comment below.