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 I know, I know everyone is making money so easy right now! Its to the moon with the S&P 500. "The third year of a presidency is always best." "We're in a cyclical bull market." "The FED is pouring money into the markets." "The ECB is buying bonds when countries can't get good bids." "The unemployment number is 9% (as if this is great)." "The world is melting up!" "If I don't get in I am going to miss the world's largest rally, its DOW 36,000."
I just want to be clear on this. If you want to own the index, or any 401(k) you are going to get hit with losses not only from your manager (who is going to take upwards of 30% of your profits over a long term) but from the market when it does sell off. Or, alternatively, you can avoid these large scale issues and keep your money and in bad times either gain or lose very little by using the methods described in this article.
I am completely frustrated that millions of American's are forced to pay their 401(k) managers, and other bankers, and the IRS, and everyone else with their hand out, because no one has told them they don't have to.
If you invested 10,000 ten years ago, you have roughly 10,000 (I am not even taking inflation into account). Only if you were lucky enough to have invested in 1980 would you feel as though you have come out on top. Yes, I know, there are the few companies that have made 1,000%, but not everyone can be a great stock picker, or have that kind of luck.
In the end YOU need to take control of your account and your IRA. Pensions are going to be eliminated, social security is going to be reduced if not eliminated for most above the poverty level, and you are going to have to work until you're 80 to collect.
You have two choices, take control, or give up control. I prefer taking control! If I sound upset, its because I am, I have watched the market take money from individuals via fees, I have watched banks destroy our economy, and I am now watching our governments of the world monetize debt and support markets at the expense of our grandchildren.
In 2001, we started Trizen with the idea of creating several products, unfortunately, one of our products was taken from us. But this second product was meant to take back control and give back the money you have earned and allow you to improve your return, maintain your principal, and have a constant flow of income. Well, after nearly 13 months of actual trading, analysis by some I consider the best traders on earth, and testing the system through the Great Recession, I know, without a doubt, all the losses over the past 10 years could have been avoided, and all the gains collected.
If you feel the same as me, I will detail a way for you to open an account with TradeStation and give each of you this algorithm along with the rules to take control of your portfolio. If the market does 30% this year and only goes up, we typically can't beat it by much (but you still made 28% probably, if not more on the options), but if the market goes down, we will absolutely protect your accounts turn what would hasve been losses into profits. Its up to you. Starting March 1, I will show you how 10,000 invested in the S&P, or Nasdaq 100, or Dow, Eurodollar, 2-Year, or 10-year, or any other future can at least match the instrument you have selected and in most cases double or quadruple the return, especially if the instrument sells off.
If you have a Roth IRA, put in the minimum this year into a TradeStation account and see what happens. If you like the results, put in some more. Allow us to manage, issue signals, or train you to advance this tax free instrument to gains of 30% or more year over year. Why 30%? Because if the market on average gains 8%, with sell-offs, and volatility, you can quadruple that return. Here are the numbers on 5,000 invested for 10 years tax free with money reinvested and contracts adjusted approprately:
Start Finish
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5,000 6,500
6,500 8,450
8,450 10,985
10,98 14,281
14,281 18,565
18,565 24,134
24,134 31,374
31,374 40,787
40,787 53,022
53,022 68,929
In 10 years you would have nearly 70,000 since 2000 rather than just 5,000. Taking control of your financial picture, and keeping the money you earn is what we all want.
There is a limit to the amount you can put into an IRA and a 401(k) because the government wants to tax your money. Don't let this happen. Now, lets assume you add the minimum every year to the above 10 year plan (adding 5,000 allowed at the start of each year):
Start Finish
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5,000 6,500
11,500 14,950
19,950 25,935
30,935 40,216
45,216 58,780
63,780 82,914
87,914 114,288
119,288 155,075
160,075 208,097
213,097 277,027
Nearly 4x the returns from just starting with 5,000. Now, lets suppose you and your spouse open up an account, this means starting with 10,000 (5,000 in each IRA) and adding 5,000 annually to each IRA for a total of 10,000 combined annually:
Start Finish
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10,000 13,000
23,000 29,900
39,900 51,870
61,870 80,431
90,431 117,560
127,560 165,828
175,828 228,577
238,577 310,150
360,152 468,198
478,198 621,657
You will have $621,657 tax free! Now, after reviewing this, do you really want to give your hard earned dollars to someone else who will give you half of this, or even less? What if we didn't earn 30% annually? I am sure that there will be times when we don't earn as much as the market, but I am confident that preservation of capital will in fact be there, so when the market tanks, you can rest assured that your accounts will preserve their principal. Additionally, we did roughly 40% this year, and I see no reason that this can't continue as long as there is a stock market and the current intraday moves continue (they have simply grown, not weakened over the last 10 years).
Now to answer another question, when will Trizen return some value? I think the above answers all questions. For over 3 years, we have provided newsletters on when to get into the market and when to get out while we developed an automated system that focused on risk management (something the rest of the world forgot about). I don't know about you, but this is my retirement plan, and I am going to put every dime into the above formula and anything I can't put into an IRA, will go into a taxable account. And as an added bonus, the fund that we started last year, will continue to grow and as it does and dividends make sense, we will distribute the profits.
Lets look at starting with 100,000 with the 10,000 added annually:
Start Finish
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100,000 130,000
140,000 182,000
192,000 249,600
259,600 337,480
347,480 451,724
461,724 600,241
610,241 793,314
803,314 1,044,308
1,094,310 1,422,603
1,432,603 1,862,383
If that doesn't make you jump up and say "That is Awesome" then you can leave your money with the Wall Street bankers who took your money over these last 10 years. For me, I will take control of my future, starting March 1.
I look forward to the next 10 years. Join me in saying NO to bad risk taking, fees, and sell-offs that eat your life savings. |
