Welcome Index Fund Investors!

Let's face it - no matter what you do in life, money plays at least a tiny role in the decision-making process, right?

Now, imagine a life where you don't have to worry about money.

Imagine a life where you can do whatever you’d like.

Wouldn't that be incredible?

Well, I started having this realization about money back in middle school.

While in middle school, my parents often told me to get good grades so I could get into a good university and ultimately get a high-paying job.

Getting a high-paying job was the end goal, right?

Nope!

I realized the end goal was to become financially independent.

As I started going down this path of learning about personal finance and FIRE (Financial Independence/Retire Early), it quickly became clear to me.

It’s not about how much money you earn. It’s about how much money you can keep!

So yes, earning a high income sounds nice. But if you had a high-expense lifestyle, you’re going to be in the same spot financially.

The goal is to spend less than you earn and to grow that gap as much as possible every day.

There are three ways to grow this gap.

The first option is you can spend less money.

The second option is you can make more money.

The third option is to do a combination of both the first and second options.

Unfortunately, there’s a limit on how much we can cut down.

Fortunately, there’s no limit on how much we can make.

So, this is where my passion for personal finance came from.

I loved looking for ways to make money outside of my employment.

Naturally, as my personal finance education continued, I started learning about different types of investments.

One investment vehicle I learned about was the stock market. And it just blew my mind.

From the way I understood it, I could just give my money to a company… and they would give me a part of their profits?

And I didn’t have to do anything...?
 

That seemed too good to be true. So, I kept diving deeper into this.

After spending countless hours researching if it could really be this simple, I kept arriving at the same conclusion: Investing is the best way to produce income and widen the gap between income and expenses.

Remember, the wider the gap between income and expenses, the sooner you’ll achieve financial independence.

I was still a teen at this time, and I couldn’t invest – I didn’t know about custodial accounts at that time either.

I was bummed out. But I knew I only had to wait a few short years until I turned 18.

So, the month I turned 18, I opened up my Roth IRA and started investing!

I was extremely confident in what I was doing, so I put all my money in a biotech mutual fund.

A year later, I ended up losing thousands of dollars.

Ouch! That hurt!

My first investment went terribly wrong!

After emotionally recovering, I later realized that was the price for getting a real-world investing education.

It’s because of that loss I started taking investing more seriously, and consequently, it got me even more interested in the stock market!

I committed to learning everything I could about investments from that point onward.

So, I studied finance and accounting in my undergraduate degree because I wanted to dedicate my career to the investment management profession.

During this time in college, I got introduced to a very risky asset class known as options.

I didn’t know much about options at this time. All I knew was it was possible to turn a simple $100 “investment” into $1,000s or even $10,000s in a few hours.

I was so confident I was going to make it big and make a million dollars in my first-year trading options.

But, I didn’t have any money to get started because it was all invested in a losing biotech mutual fund.

So, I borrowed $5,000 from my parents…

…and I immediately lost $3,000 through buying options.

It was an incredibly humbling experience.

I thought I had it figured out. I mean, it’s super simple, right?

You buy an option, and it’s going to make you a millionaire. End of story, right?

After that painful defeat, I decided not to play around with options because the losses hurt so much and decided it was too risky for me.

Then a few years later, I came across an advertisement that changed everything.

In the advertisement, they kept implying that you should not buy options and that you should sell options instead.

I was kind of annoyed when I saw that ad. I mean, how could they know more than a 20-year-old kid, right?

I dismissed the ad completely because I knew that they didn’t know what they were talking about. 

I mean, come on. Selling options are super risky, right?

But then I kept seeing this advertisement over and over again.

So, I decided to put my ego aside and at least see what they had to say.

I knew buying options for me clearly was not working. I mean, if it had, I would’ve been a millionaire already.

So, what was there to lose by at least trying to understand their strategy?

So I watched the video.

I didn’t really understand it at first.

But then I rewatched the video.

Then it clicked.

After watching the video, I realized that options were actually just like Legos.

You can use these Legos to build whatever you want.

You can use the Legos to build lottery tickets (this is what I was doing when I was buying options).

Or, you could use these Legos to build a casino (this is what the option seller does).

In the long run, who makes money? The lottery ticket buyer or the casino?

That’s right! The casino makes money in the long run.

So, in this strategy they proposed, you'd get to assume the role of the casino and build your own cash flow machine using options.

I didn’t believe it at first.

I thought if it’s so profitable, why isn’t everyone doing this then?

Then I asked myself that question. Why wasn’t I executing this strategy?

It’s because I didn’t know about it.

BINGO!

So, to test out this strategy, I started implementing it in my own investment account.

And to my surprise, it started performing very well.

I still didn't believe it. There must be a catch.

I kept looking for vulnerabilities with this strategy.

Of course, after searching thoroughly, I found some.

Implementing this strategy still has risks, and your investments may still go down temporarily.

At this time, I was investing in index ETFs and I wanted to see how this strategy would compare to what I was currently doing.

As I was doing research, it became apparent this strategy would outperform during down and neutral markets compared to buy and hold index fund investing.

During bull markets, this strategy could earn anywhere from 25-50% a year.

After a few years of trading this strategy (using my own money), I started sharing this strategy with other investors.

I showed them my returns and the risk I used to achieve the returns.

To their surprise, I was able to generate a higher return while taking on less risk compared to the typical buy and hold index fund investing strategy.

These investors wanted me to implement this strategy for them.

So after raising some soft commitments, I left my employer in January 2022 and started a hedge fund to execute this specific strategy.

After a few months, I started having a large number of people in my network ask me to manage their money as well.

Unfortunately, I couldn’t legally accept their money because they were not accredited investors.

So, I decided to find another solution since I wanted them to be able to benefit from this strategy as well.

That's how I came up with this idea.

What if, instead of managing their money through my fund, what if they could execute this strategy themselves?

I asked them if they’d want to learn this strategy so they could implement it themselves, and they loved the idea.

So, I built a product where they could watch a few videos and learn how this strategy works.

In essence, they’d be able to copy & paste my hedge fund’s strategy into their own investment portfolio.

I modified the strategy so that it’d take less than 30-minutes a month to execute by themselves.

Okay, so why should you execute this strategy instead of using your current buy-and-hold strategy?

To be honest, I love the buy-and-hold strategy and think “index and chill” is an incredible strategy.

In fact, when I was employed, that’s mostly what I did.

The only difference with this strategy is, what if you could generate additional income using the stocks and ETFs you already own?

The income you generate through this strategy could be high enough to buy an extra share or two of your favorite stock or ETF every month.

Imagine buying an extra 12-24+ shares of your favorite ETF every year!

Mathematically, by executing this strategy in your investment account, you may be able to retire up to a decade early!

That’s crazy, right?

Of course, this strategy is not meant for everyone.

This strategy is not meant for people who want to watch stock charts all day and actively trade.

This strategy is not meant for people who want to spend hours analyzing individual companies and financial statements.

However, this strategy could benefit you if you already have good financial habits and invest in stocks and ETFs (preferably index funds).

This strategy could be beneficial to you if you can follow directions and learn a simple rules-based strategy.

This strategy could also be a good fit if you are willing to spend less than 30-minutes a month to achieve financial independence a decade early.

If you’re interested in learning this strategy, I actually have a gift for you.

I've put together a few videos that go through this strategy in detail so you can use it today in your own investment account.

As you’re going through these videos, make notes and reach out if you have any questions.

I’m here to help, and I’m cheering for your success.

Click the link below now and learn for FREE.

Cheers,

Vijay Kailash, CFA