How To Build Wealth Using ETFs Without Knowing How to Trade
Let’s kickstart things and conduct a quick thought experiment, shall we?
Who is wealthier?
Someone who works eighty hours per week and earns $450,000 per year,
or…
Someone who works 20 hours per week and earns $250,000 per year?
Insert the Jeopardy theme song here…!
There is no right or wrong answer because multiple strong cases can be made for both.
If we break things down into absolute terms, the person earning $450,000 has more money. However, the person making $250,000 is more productive per hour and has a lot more available time once the workday is done.
Your choice speaks volumes about who you are as a person, your mindset, and the life stage you are currently experiencing. I encourage you to ponder WHY you chose the answer you did.
For example…
You may be in a mid-life phase, the prime of your income-earning days. You are working hard every day to build your passion business as big as you can. You want to build wealth while the going’s good and while you have the energy to do so. One day you plan to slow down.
Maybe you are a more balanced lifestyle person and would instead choose to make less money, work fewer hours, and enjoy hobbies or adventures outside of work with family, friends, etc. To you, wealth is more about living, not working.
Again, there is no right or wrong answer. We are all in the position you are in and must do what works best for our own situation and investment personality.
Ok, let’s try another thought experiment…
This time, we’ll assume that your investment dividends and interest income pay your lifestyle expenses. Therefore, your income is separated from your time because your bills and activities will get paid even if you do zero work.
Does that seem like a wealthy person and lifestyle to you?
If so, then you likely have an intuitive understanding that wealth is a by-product of assets operating independently of your time. Take a moment to think about that…
Wealth is a by-product of assets operating
independently of your time.
Does this thought provide you the idea of freedom to do the things that excite you, make the hairs stand up on the back of your neck, and allow you to spend more time with those you love?!
It certainly does for me.
With some of my spare time, I give a helping hand to those who are not as fortunate through local charities and fundraisers. I started the 100MenWhoCare group in our town, where we focus on raising $10,000 in 60 minutes with 100 men who donate $100 each.
My daughter Mirabelle and I are part of the BrainFreeze Challenge, where our team is taking the plunge into ice-cold Canadian waters to support Mental Health for Youth programs. Did you know that suicide is the #1 cause of death for young people? I didn’t and was both shocked and saddened by that statistic. Shameless plug alert – I would love it if you helped us support the cause!
I also am an avid inventor who designed and created the world’s first flying jet surfboard – VeFoil!
How do I have time for all of this?
Because my brain thinks and works differently than almost every other trader and investor, maybe even person, I know.
Start making your capital work for you,
and then you can help others.
My life’s work is helping individual investors and financial advisors become wealthier. I help them make more money with less effort and less risk by only holding assets rising in value. When that particular asset trend ends, we reinvest our capital into a different asset that has started a new uptrend.
This asset revesting strategy allows investors to sidestep and even profit during falling stock and bond prices without taking any additional risks. In fact, it can reduce portfolio risk and volatility if you are committed to the revesting process.
What I do is very different from the old Buy-And-Hope investment strategy of the past. You know, the one we all grew up with. The strategy pounded into us as soon as we learned what money was and trumpeted by virtually all investment advice you could find. Only now, instead of the ‘big-money’ we were all but promised, we get to watch as most portfolios take an ugly swan dive and will likely end with a painful bellyflop.
No. Just NO. It does not need to be this way and certainly isn’t in my world.
What I do is the complete opposite. No Diversification, No Buy-and-Hold, No Positions at times, plus I manage positions to control risk and profits. These are things you likely don’t do, and a way of investing you won’t find any advisor doing unless they happen to be one of my clients.
I do this by helping enlightened financial advisors and individual investors embrace the idea that by using technical analysis we are able to follow price trends very closely to know when one trend has ended and a new one has started. I only invest in the most liquid assets (stock indexes, bonds, US Dollar index). I also embrace the use of systems that operate without our time and energy, which continue to work for us whether we are sleeping, playing, or on vacation.
To bring this full circle, this happens the same way that dividends will arrive and be deposited into your brokerage account no matter what you may be doing elsewhere.
Ways income can be automatically generated
with this new way of investing
They are:
- Dividend payments from index ETFs
- Bond ETF interest payments
- Share lending interest income
- Portfolio growth through revesting trades (we locked in a 5% gain yesterday in SPY)
Now, if you don’t know anything about trading or investing, that’s fine.
And if you value your time and don’t want to think about managing your investments, that’s not a problem either.
I’m all about being as efficient as possible and not having to do anything that can be done for me.
This leads to having an ETF trading strategy executed automatically in your brokerage account. I believe human error is the reason why most traders fail to make consistent money. People’s emotions, lack of self-discipline, missing trades, incorrect trade order execution, etc., all lead to investing underperformance.
For these reasons, I offer autotrading of my primary strategy at no cost. I know it’s the best option for individuals to build wealth on autopilot with less risk and less stress. And I am all for a world where we can spend more time and energy with the people, events, passions, etc., that cause our cup to runneth over.
The bottom line…
Using a multi asset revesting strategy to make your capital work for you while you are boating, golfing, working, sleeping, or traveling is like having another profitable business making you money…only without the headaches.
I explain exactly how this process works below if you want to learn more.
If you have any questions, I’m always here to answer your questions!
Chris Vermeulen
Chief Investment Officer
www.TheTechnicalTraders.com