In this episode, I’ll show you how to utilize stock options to increase your wealth… and much more.
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How To Generate Immediate Income, While You Wait
To give you an update on what’s going on in Jack’s world, I got my book’s first round of editing back. It was completely shredded, but in a good way, and all the things and suggestions from my book editor who also edits my show. She’s incredible. It was messy with all the lines through everything and suggestions and all the improvements that can be made. I realized humbly that I could potentially not be as good of a writer as maybe I thought I was. That’s pretty much everything I do in my life. I’m going to be better at it initially than I am.
I knew this instinctively, but I didn’t want to come to terms with it or grasp it. I’m getting impatient. I want this book to get out there into your hands. My hope is that many thousands of other people will read it, be inspired, and help them to make changes. What we discovered and what she suggested is that in my book, I’m trying to serve two different audiences at the same time. That’s very difficult to do.
What I mean by that is that there are investors that are getting started in their financial journey. They might not even have $10,000 or $20,000 to invest. They’re trying to figure out how to build up to the point where they can be a good investor and grow their wealth. I know that’s a lot of you that are reading, and that’s great. I have a passion to help you. I was you. When I first started my investor journey, I didn’t know at all what I was doing. If I would have had a show and mentor like this, it would have saved me if I had listed a bed and a space where I would listen. I don’t know if I would have been in that space. I would have been able to avoid a lot of costly mistakes.
The other audience is the audience that already makes a strong six-figure income. They have over $100,000 to invest and they’re looking for strategies to get stronger returns, safer returns, diversify and learn new ideas and concepts. It’s very difficult to speak to both of those groups and serve both of them at the same time. That’s what I was trying to do in my book.
It’s back to the drawing board. I am working on dividing the book into two different books. The first priority will be to get the advanced book out to serve the six-figure earners and investors and help them to learn the strategies because that’s the group that I can help probably the fastest in terms of making changes for them to make money.
I can also monetize that group as well through a private mastermind group that I’m going to offer where I’m going to give all the trades and cryptos that I buy, incredible tech stock opportunities when they arise, different higher-level strategies, and offer my funds like my self-storage fund and my Bitcoin mining operation. Those are things for that investor base. That’s pretty critical at this point that I start generating income for this platform. It’s been a charitable organization and it needs to become a profitable organization now that I’ve laid the foundation.
I am going back to the drawing board rewriting. I’m writing the advanced book first. That is going to be the one that’s going to be released. Once that’s rocking and rolling, I’m going to be coming back and launching the one that gets the passion and the fulfillment. If you don’t see a book out for maybe a little longer from me of what I was talking about on previous shows, you will now know why.
You Can Have Your Cake And Eat It, Too.. Really!
What I want to talk to you about is the important concept of being able to generate income off of your investments and assets as you wait for them to go up in value. My mom used to always tell me, “You can’t have your cake and eat it too.” I love my mom. I adore her. She was the best mother in the world. She used to always give me all these phrases, things that maybe I didn’t understand at the time, but she would drill them into me.
“Many hands make light work.” I love that one. She even cuts a little bit. I said, “You got to shit or get off the pot,” which means, “Make a decision. Make up your mind and go with it.” “Make hay while the sun shines.” I never understood what she meant by, “You can’t have your cake and eat it too.” What kid wants to stare at a delicious cake and not devour it? it wasn’t until years later that I learned that it was an idiom. It’s a figure of speech that means that you have two good things that are impossible to have at the same time.
In addition, it means having the good parts of something without having to deal with the bad parts. An example would be parents that think, desire, or demand that they can have excellent schools for their children without paying higher taxes. There are two options that you want, but you can’t have both because they conflict with each other.You can’t have the good parts of something without dealing with the bad ones. Click To Tweet
The reality of investing for most people is that they buy things and wait for them to go up. They’re just staring at their cake, AKA their investment account without eating it, which means spending the increase. It’s why very few can stick to a plan like this, where you wait for decades to spend and enjoy the fruits of your delayed gratification.
Let’s face it. You keep plowing money into an investment account and you never get to enjoy any of it because if you pull out, you’re stopping the compounding of the growth and you got to keep banking until you hit retirement. That’s a hard pill to swallow for most people and why most people don’t stick to that plan. It’s very few that can keep plowing money away for 40 years and never touch it. The vast majority that buy stocks or crypto, they’re buying them simply hoping and praying that they will rise in value and that someone down the line will pay them more than they bought them for.
This is a critical question. I want you to stop, think, and consider this. What if you could have your cake and eat it too in your investing life? Meaning, what if you could buy assets and generate strong cashflow from them while you patiently, or most likely if you’re like me, impatiently, wait for them to appreciate? For impatient people like me, we don’t like sitting back and doing nothing. After all, we did not become strong earners by sitting back and being patient. We drive results with our aggressive actions. We like to be in control of the outcome as much as we possibly can.We don’t become strong earners by sitting back and being patient. We drive results with our aggressive actions. Click To Tweet
Buy, wait, and pray goes against a lot of our entrepreneurial nature. When the market went against me back in 2000, I was 21 years old, I lost half of the $50,000 I’d saved up. I learned many lessons like position sizing, risk management, and diversification. One of my biggest lessons learned was that you can’t build your portfolio solely with high-risk assets. I use these same lessons and strategies to build what I have now.
Building Indestructible Wealth
It’s the foundation or the bedrock of what Indestructible Wealth is all about. It gave me the edge I needed to build my wealth. Those are the same lessons we’re going to use in our strategy. To truly build long-lasting wealth, you need to generate multiple reliable streams of income in addition to your riskier strategies. It may seem a bit paradoxical, but the more safe income you build, the more free income you’ll have to speculate on high-risk and high-reward plays.
You got to build that base of wealth on a solid foundation of multiple income streams. The income strategies that I’m going to talk about can help you generate 15%, 20%, or even 30% or more per year on your money safely. Some of you will use that extra money to make more life-changing asymmetric, crypto-type plays without risking your current lifestyle. If you studied the platform, you know that asymmetric means that your downside is significantly less than the potential upside that you have.
Others will use it for dream vacations or second homes. I’m sure many of you will be able to use this income to pad your retirement nest eggs. The point is that when you have steady income coming in, separate from your employment or the main source of income from your business, you’ll have many more choices in your life. You can spend money on your hobbies without guilt. You can buy your spouse expensive jewelry without the nagging or worry of a credit card bill looming in the back of your mind.
I bought my wife a 4-carat diamond rock for $30,000. I didn’t care because the income from my investments more than paid for that extravagant purchase. When you have more money coming in and going out, every aspect of your personal life is going to improve. The goal of the Indestructible Wealth Method is to provide streams of income that you can spend or invest whatever you want, whenever you want guilt-free.
Let’s face it. You love to make money. You wouldn’t be reading this show if you didn’t love to make money. You value a strong income. There’s nothing wrong with that. In fact, that drive that you have is what built America into the economic powerhouse that we have now to build us to the great country that we have now that we’re able to be a part of.
If money takes over your heart and your soul, and money becomes your God, well then that’s where things are going to get very ugly for you. I’m banking on the fact that you’re a good person. You want to do good things for others, including your family, community, country, and world. In order to maximize the impact on the mark you can leave on the world, you need money.To maximize the impact and mark you can leave on the world, you need money. Click To Tweet
As I’m doing this, the Russians are in a full-scale horrific attack on Ukraine. My heart is hurting in watching the story unfold. There’s not much if anything that I can do to help. I’ve tried to limit how much I watch it because when it first started, I was gripped by the story. There’s a real piece of me that wants to go over and join their fight. I want to be a part of something so much bigger than myself, the defense of freedom. These people live in a democratic country and their citizens are being brutally attacked, but I have no combat skills. I’ve fired a gun at a range of one time. I’m certain I’d be a total liability more than an asset.
However, there is former military who have the skills and want to go join the fight. With the income from my multiple streams of investments, I can pay for plane tickets for them to go. Although I cannot realistically fly there and be useful, I can send those who can be without adversely affecting my family because I have income streams from real estate, stocks, and crypto. Not only can I finance a small piece of the fight, but I can also donate to monetary causes to aid the refugees. I don’t know about you, but I do not want my life to be about the accumulation of money. I want it to be about making a true difference in other people’s lives. In order to do that, you got to have money.
Real Estate, Stocks, And Crypto
How do we create income while we wait for our assets to appreciate? We rent or lease them out. We can do this in all three asset classes, real estate, stocks, and crypto. In real estate, as I’m sure you’re already aware, you rent your property to a tenant. This is easier for us to understand because all of us have probably participated in the rental market in some capacity typically as the rental side, either through renting an apartment, a home, a commercial space for our business, or even a self-storage locker.
What we probably haven’t done is lease out our crypto or help to secure and validate transactions in the crypto network, which is also referred to as staking or mining. You don’t need to buy crypto and wait through the incredibly exhilarating price pumps and the inevitable market crashes with this asset class. You can create streams of crypto-based cashflow to reduce your risks while you wait for it to make it the next all-time high and alleviate your discomfort. You do not have to be technical in nature to do any of these things. I promise you. I am not.
I have done two shows. If you have not checked them out, there’s a total episode on Bitcoin mining and how to do it. You can do it with as little as $10,000. You can buy a Bitcoin mining machine and have somebody else run it for you or if you’re a more six-figure type investor, you can get ahold of me and we can discuss my Bitcoin mining company, Crypto Mining Specialist. We have slots that are about to open up around 300 machines that we’re going to be able to store, host, and run for you on the network.
With stocks, you can also create strong income streams through what’s called options. Now, most of us are familiar with what’s called a dividend. Dividends are a great source of income from stocks. What’s a dividend? It is simply the profits from a company, their earnings and instead of reinvesting those back into the company, they’re sending it out to all the owners of the company. It has a profit stream. You get to share in the profits of the company when you get dividends.
The problem with dividends, the average dividend yield across the entire S&P 500 currently sit at 1.27%. That’s hardly going to make any meaningful difference in your finances anytime soon. With stock options, you can generate 20% to 30% annualized returns. Anytime you create income from a stock you own or that you’re willing to buy, you’re going to effectively lower your risk. We’re going to get a lower cost of ownership of that stock.
I’m going to give you a basic example of how this works. I hope that I boiled this down so this is simple for you guys to understand and I think it is. Let’s say you found a great company that you’d love to own. It’s a blue-chip solid company that gushes cash. It’s going to be around for a long time, decades. I did this with Microsoft. It’s a great company that produces billions in free cashflow. I doubt this stock is going to collapse anytime soon, but on the flip side of that, it’s also not going to go up by much as most of its large growth is behind it. These are the perfect type of stocks to generate income on them.
The reality of blue chip stocks is that they’re very stable, but most of their gains have already been priced into the stock. They’ve already seen their big parabolic movements upward. It’s a $1 trillion company that probably doesn’t have too much more room to grow. Let’s say the price of the stock is $30. Bill owns Microsoft stock and you do not. He’s very concerned that the market may drop. Bill wants to buy insurance that protects him if the stock suddenly drops. It’s called a put option.
He pays you $3 per share, which essentially means you’re agreeing to buy the stock from him if it drops below a certain agreed price. Let’s say, you agree that if it drops below $30, where it’s at, then he has the option to essentially force you to buy it. The minimum that you can buy is 100 shares, that’s what’s called a contract. You agree to this with Bill so you collect the upfront $300 in cash. Why did you do this? If you’re not concerned if the price drops of the stock, then you don’t care because you’re happy to own the stock. You want to own the stock. Should that stock drop then Bill can put it to you. That’s how that whole expression is. Do you ever hear that? “He’s going to put it to you,” came from the stock market.
This means that you have to have the cash in your online trading account to be able to purchase the shares at any time should they drop below the price that you guys agreed on. 1 of 2 things can happen. Number one, the price of the stock does not fall below the number where you agreed to buy it. It either maintains, above that threshold, or increases. This is great. You keep the insurance money that Bill paid you and he still loans the stock. You can decide to do it again on the same stock or pick another. The second thing that can happen. The stock drops below the agreed-on price. You have to buy it from Bill.
If the price is $30 and you collected the $3 from him, it means you now own the stock at a cost basis of $27 per share. To make sure you didn’t lose me here, you got $3 per share from Bill in upfront cash. The price of the stock when this was agreed on is $30. Now, you are forced to buy that stock, your effective cost, for example, is $3,000 minus $300 which is $2,700, or $27 per share. You’re happy to buy the stock. You have no problem with that because it’s a great company.
You own the stock. What do you do now? You turn around and sell an instant cash listing. This is another form of option. It’s called a call option. Don’t worry about puts, calls, and all that. That’s confusing but just get the concept. Another investor rather, let’s call him more of a gambler speculator, thinks that the price is going to go up quite a bit. He pays you $3 a share for the rights to purchase the stock from you if it hits a higher price, let’s say $33. You collect that $300 in cash upfront, and then you wait to see what the stock does. If it stays below that $33 agreed-on sale price, you keep the option money and the stock and you can go do it all over again.
If it goes above the $33 agreed-on price, you sell the stock for an additional profit beyond the $300 in cash you received. You’ll make $3 per sale on the sale, plus $3 on the option and now you made $600 in cash on the stock. You sit back and wait for the next actionable trade. This is the beauty of options. I did this for several years when I first started out as an investor. My financial advisor at that time guided me on how to do these. Why did I do it? It’s because I wanted to create another stream of income and I wanted to participate in the stock market, but I also wanted to do it to where it would be less risky and create an additional stream of income.
I made thousands of dollars doing this and I’m kicking myself for, “Why did I stop when it was working?” I got hyper-focused on real estate. I sold all of my stocks and I went all in on that. That is what I keep telling you guys over and over again on my platform, “Don’t do that. Don’t go all in on one thing. You need multiple strategies to produce significant wealth.”
I’m sure you’re asking the question, “This sounds great, but how do I do this whole option thing? I have no idea what to do. I get the concept, but I don’t know how to take action.” You say to yourself, “I don’t have the time or energy to pick stocks and figure this out.” I get it. I don’t either. I have an actionable solution for you. The elite trading service called Alpha Edge has executed 377 trades since 2012. Of those, 369 closed as winners. That’s good for a 98% win rate.
The market since 2013 has been a bull market, but it’s certainly gone through some ups and downs and challenging things. We’ve had the COVID crash and the fed-induced threat of interest rate rising correction. This service can work through those types of even market downturns and still be able to provide a very profitable, highly successful win rate. That performance is better than any trader that I’ve ever heard of.
If you’re interested, just go to PalmBeachGroup.com and you can sign up for the service. I would recommend investing or having at least $10,000 to do this as all option contracts are based on 100 shares of stock. Most of the ones that they’ve recommended took about $10,000 to be able to do. In addition to that, I don’t think it’s worth the time or the energy in my opinion, to do it on less than that. it’s the Alpha Edge Service. This will help you guys to generate returns on your stock.
If you recap, we’ve got 3 asset classes and 3 ways to create income as we wait for them to go up. With real estate, by great assets that produce great cashflow, we wait for those to go up with the market, but while we’re waiting, we’re totally happy with the investment because it’s generating another stream of safe and reliable income. We can do it with our crypto. We can mine crypto. We can lend and stake it, which I covered the lending and staking on a previous episode. Look back a couple of episodes and you’ll see that one. You got a mini-lesson on stock options.
I’m here to serve you. If you hit me up and say, “I want to learn more about this. I want to learn more about anything pertaining to finance and investing,” let me know, and I’ll produce that content for you. If enough people ask, I’ll deliver. It’s all good. What I’m here to do is serve you. I hope that this makes sense and that the stock options didn’t give you deer in the headlights. If it did, go back, maybe even sit down and put pen to paper.
If you want to learn and go into a deeper dive, my advanced online video-based learning course is the Advanced Indestructible Wealth Builder. I’m building these lessons into that course. You can learn more about how to do this through that service. Thank you much for reading. If I’m delivering a lot of value, I’d love for you to reward me for delivering the value and give me a five-star review. Share this with your friends. if the content is great and it’s valuable, then I deserve to be shared. If it’s not, then you won’t. Thank you so much.
- previous episode – Episode #67 – Crypto To Own Now
- Alpha Edge
- Advanced Indestructible Wealth Builder