| Note: Over the last few days I've been sending out a 6-part series called "The Retirement Conspiracy", which you can read in full at www.RetirementConspiracy.com. Now, I'm revealing the solution. Hello again.
Over the last few days in my six part Retirement Conspiracy series we've gone over how economic policy is punishing savers, retirees, and hopeful retirees (See Part 1, Part 2, and Part 3).
Then, we looked at how the pros and cons of trying to retire comfortably through Real Estate, Index Funds, and Dividends (see Part 4 and Part 5).
Namely, that it requires quite literally millions of dollars saved in order to live off investments in index funds and dividend stocks and it also depends on a whole lot of things going right as well.
Because if they were to go wrong – which they have before – those strategies effectively fall apart.
All along the way I've teased a solution to this Retirement Conspiracy – a solution I call The 70/30 Cash-on-Demand Income Formula.
Well – the teasing is over.
Let me tell you what this is all about (well as much as I can in email format and I'll tell you the rest in a free live webinar I'm inviting you to).
Part 6: The 70/30 Cash-on-Demand Income Formula
Over the course of sending this series out I've gotten a lot of emails back from people that have confirmed my suspicions.
My suspicions being this: Folks have accrued savings, but perhaps not enough savings where they can live comfortably off dividends or index funds.
Furthermore, they are unclear of where exactly that puts them and what exactly they can even do with that money – to put it to some kind of use.
For example, a woman named Ursula S. Emailed me the following… "Hi Jon, I am a 84 year old retiree who has a financial advisor but he never increased my portfolio. I really would like to increase my portfolio with these times ahead of us."
Mike is someone else who messaged me. He said…
"Concerned about increasing costs and decreasing assets just to maintain lifestyle." Phil W. asked… "Which [strategy] is the least expensive to engage in? I have a small amount of money for investment: $15,000. Thanks." And my of our readers "Down Under" in Australia sent this… "I have just reached retirement age here in Australia with less than $100,000 saved. I hope you can show me how to improve my income in retirement!!!" First of all I just want to thank all of you for engaging with me. Your input has helped me really understand how I can better serve you and your needs.
And it's really the kick in the butt I needed – because now I feel my mission is crystal clear.
First of all, let me explain what my 70/30 Cash-on-Demand Income System is designed to do.
- Create cash-flow from the market in a way that does not depend on a pre-set circumstance:
That means, the market does not have to "return" a certain amount per year for this to work. The Fed doesn't have to "raise interest rates" in order for this to work. The market does not have to go up, or down, or sideways for this to work. And no CEO has to decide to keep raising their dividend year-over-year for this to work.
- Create Cash Flow With Less Capital Required Than Traditional Index Fund / Dividend Investing Strategies
As I detailed in Part 4 and Part 5 in order to make, for example, $60,000 a year with an index fund investing strategy, you'd need at least $1.5 million invested. For dividends, you can expect over $2 million invested in order to do that.
But, when it comes to my formula for example, it's possible to generate the same $60,000 a year with an account size of around $275,000 instead.
Obviously that's still a lot of money – but it is nowhere NEAR the amount of money you'd need in those other two strategies, plus as I detailed in the point above, my strategy doesn't fall apart if set market conditions fail to appear.
However, you can still generate meaningful monthly income with accounts that are much smaller.
In fact, you can expect to generate up to $30,000 or more with a $100k account per year…
$15,000 or more with a $50k account per year…
$7,500 or more with a $25k account per year…
And $3,750 or more with a $12.5k account per year.
These are estimations based off the last 12 months performance of this formula (although – again – it's a formula I've been using for 25 years).
All in all that's about 30% per year cash flow from your savings.
That's money you can use NOW for anything you want.
Now, you may think that doesn't sound "lifechanging" but let me remind you of a few important facts…
The highest yield savings account in the United States is 0.7% a year
The current US 10 year bond yield is 1.63%
The highest-yielding dividend stock in the S&P 500 is 6.22%
And real inflation(according to Shadow Stats) a little over 10%
That makes my formula a better cash-flow solution than all savings accounts, all bond yields (in the world), and all dividend stocks on the planet, both beating inflation AND returning a strong yield.
It may not "beat" the S&P 500 every year, nor is it designed to. What it's designed to do is give you cash flow from your savings. If your goal is returns (and NOT cash flow right now), then you may be better off investing in long-term growth stocks, dividend stocks, or an ETF – then you can take a portion of that out to use for cash-flow generation later.
Although as you can see in Point 4 below, this strategy also has the advantage of a rapid compounding effect not found in even the best dividend stocks or strongest bull markets.
- It Needs To Be Simple, Repeatable, Reliable And NOT Time-Consuming
So what's the "70/30" thing all about? It's simple.
With this cash-producing strategy you can expect to win 70% of the trades and lose 30% of the trades like clockwork.
No surprises – just statistical reality.
And because this is a probabilities-based strategy – all you gotta do is trust the system.
The market can go up, down, or sideways. Heck – it can go in cartwheels – and our winning percentage / losing percentage will remain constant.
That removes stress from the equation.
Furthermore – because the strategy is a repeatable formula it only takes about 10 to 20 minutes a week to perform.
This strategy is not a "get rich quick" type of thing. You're never going to nab a 10 bagger. You're not shooting for the moon.
This is for income and cash flow that you can rely on.
- It Needs To Offer Compounding
Here's one of the most important things.
Perhaps you are starting out with a smaller account and you have a certain goal for your income in retirement.
Well, you don't need to withdraw the income this strategy generates. Instead, what you can do is simply compound it trade after trade after trade.
In fact, since you'll be closing out up to 8….10…12 trades every single month, you can think of every single trade closed as a kind of "interest payment" or "dividend payment" (which is a lot more frequent that once a month or once a quarter).
This can help you compound your account FAST.
In fact, over the course of 12….24….36 months you can double or even triple your account size.
You see, I recommend never risking more than 5% of your total account size per single trade.
So what you can do is simply increase the amount of money you put into each trade, with every increase in your overall account size.
For example, if you have a $50k account that 5% per trade would be $2,500.
If your account grows to $55k you can now put in $2,750 per trade.
It grows to $60k, you can now put in $3,000 per trade.
And on and on – as your trade size grows, so does the money you make per-trade.
You'll be astounded at how lightning-fast your account compounds until you reach your desired account size and cash flow.
Even better – perhaps your goal is to live off say $40,000 a year, but you want to generate $60,000 a year in income so that you can put an additional $20k into long-term investments every year (such as index funds, growth stocks, or dividend stocks).
You can do that too!
This can be a kind of "salary" that the market pays you – YOU decide how much you want to get paid and YOU decide how much you want to put away into long-term investments.
That's the power of this formula.
Would You Like Me To Show You How To Do This? And Even Receive Trade Alerts Directly From Me So You Can Follow Along?
If so, Go Here now to register for my webinar.
I've really enjoyed sharing my thoughts with you over the last few days and I surely do hope you've enjoyed reading them.
I hope we can meet on my live webinar here where I can also answer any questions you may have.
It's a crazy, uncertain, low-yield world out there and it seems like everything is conspiring against us – to just suck away the value of our savings.
I think it's time we fight back – to keep our wealth, grow our wealth, and have our wealth work for us by paying us an income.
If you're with me join my webinar and I'll see you soon.
Take care and thanks again.
Trade Wisely,
Jon Lewis
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