The Ultimate Investment Strategy
+ Beat the market 4-to-1 with fewer pullbacks
+ Cut your retirement/FI number in HALF
+ Double your retirement income
WHAT IT IS
The 8% Rule is a self-managed investment strategy developed to improve upon the pitfalls of typical investments and investment strategies.
The 4% Rule (from The Trinity Study) is based on the minimum value that could be withdrawn from a mixed portfolio without running out of money after 30 years. The problem with the investment strategy used for the 4% rule is that significant pullbacks limit returns and withdrawal rates. The 8% Rule is a more intelligent strategy that increases and stabilizes returns by avoiding pullbacks, allowing for higher safe withdrawal rates.
HOW IT'S BETTER
The 8% Rule was built to have higher returns and more shallow pullbacks than stocks in general.
With this combination, your money compounds MUCH faster.
Over the long-term, The 8% Rule beats the market 4-to-1, allowing for a safe withdrawal rate of 8%.
With $10,000 invested in the S&P in 1990 you would have almost $95,000 today.
That same money invested in The 8% Rule strategy would be over $430,000. $335,000 more (33x your original capital) just by using a strategy that balances high returns with small pullbacks.
Since 1990 The 8% Rule has never dropped more than 9.3% (on an end of month basis). That’s right – no corrections in 30 years.
HOW IT WORKS
More money is made in the long-term by balancing high returns with minimal losses. The 8% Rule utilizes the concepts below in order to outperform the market and grow your money quickly and safely.
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Don't ``Buy-and-hope``
It may be admirable to buy and hold through the ups and downs, but is it necessary? When you buy and hold you're essentially buying and hoping the price goes up. The 8% Rule improves on this method by only buying assets that are going up. If nothing is going up, the strategy holds traditional safe haven assets (I.e. cash and treasuries)
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Advanced Number Crunching
The 8% Rule uses a unique algorithm paired with a sophisticated investment platform to determine the best monthly allocation for high returns while avoiding large losses.
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Systematic; not emotion-driven
This is a rules-based strategy that doesn't get caught up in the day-to-day movements of the market. Simply follow the strategy and your money will grow quickly and steadily while avoiding large losses.
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Full control of your money
Don’t hand your money over to a financial planner or money manager who gets paid based on how much money they bring in. The 8% Rule allows you to be your own money manager with no fees based on your account size.
WHO IT'S FOR
Those looking to beat market returns
The 8% Rule strategy has returned 12.5% per year and has never dropped more than 9.6% (no bear markets). It has beat the S&P 4-to-1 over the last 30 years with fewer and more shallow pullbacks.
Those seeking financial independence/retirement
If you’re seeking financial independence or retirement, using The 8% Rule strategy will reduce the amount of time until you can “retire” by cutting your retirement/FI number in HALF (assuming you’re currently using The 4% rule). This can cut years or even decades off your working career.
Those already retired
If you’re retired and would like to pull more money from your investment account, this is for you. The 8% Rule allows you to withdraw twice as much as typical methods like the 4% rule.
Those who want to control their own money
Retain full control of your money and grow it quickly and safely with The 8% Rule.
NOTE: You’ll need 5-10 minutes per month to manage the money you have invested in The 8% Rule strategy. If you don’t have that amount of time, the strategy is not for you.
Ask Us a Question!
We want to see you succeed! Whether you have a question, concern, or simply want to know how this strategy could work for you, e-mail us at Admin@The8PercentRule.com and we’ll respond as soon as we can.
How The 8% Rule can Improve Your Financial Security
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Pursuing Retirement/Financial Independence
By utilizing The 8% Rule you can cut your retirement/FI number in HALF, cutting years off your working career. This is possible because the safe withdrawal rate using this strategy is over 8%. Example: if your monthly spending is $2500, your ``number`` using the 4% rule is $750,000 (2500*12*(100/4)). With The 8% Rule your number is $375,000. How long will it take you to save an additional $375,000?
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Already Retired
You can safely withdraw 8% per year of the money that you allocate towards The 8% Rule strategy; twice as much as the standard 4% rule. Example: if you have $100,000 to invest, the 4% rule will give you $4000/year whereas The 8% Rule will give you $8000/year - an extra $333 each month!
How to Follow The 8% Rule
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1
Try it out!
Sign up below for a subscription to The 8% Rule strategy.
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2
Receive an e-mail
We'll send you an e-mail immediately and at the end of every month explaining exactly what to do to follow The 8% Rule.
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3
Take action!
Make the necessary changes in your investment account based on the instructions provided.
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4
Enjoy the profits; enjoy your life
Whether you use The 8% Rule to grow your money quickly and safely or to withdraw a safe 8% per year, now you can sit back and relax until the end of the month.
Subscribe to The 8% Rule
$129/month $67/month (subscriber special)
$999/year $497/year (subscriber special)
- You will get an e-mail with the current 8% Rule allocation immediately after subscribing and every month thereafter (check your junk folder!)
- Start beating the market with much less volatility
- Cut your retirement/FI number in HALF
- Start withdrawing a safe 8% per year
- Cancel any time. No questions asked and no cancellation fees.
E-mail us: Admin@The8PercentRule.com
We want you to try The 8% Rule but only if it makes sense for you! Please e-mail us with any questions or concerns you have. We'll get back to you as soon as possible.
We also offer customized investment plans and strategies; e-mail Admin@The8PercentRule.com for more information.
FAQs
How much money do I need to utilize The 8% Rule strategy?
We recommend having at least $2,000 to invest in this strategy to use it effectively, but with many brokerages now offering fractional shares, this can be as little as $50-100. If your brokerage charges commissions you may want to have at least a few thousand dollars to offset the transaction costs. However, most brokerages now offer fee-free trades, so we highly recommend seeking out one of them (for example, Fidelity offers both commission-free trades and fractional shares).
How does The 8% Rule strategy work?
The strategy is built to invest in assets that have upward momentum and reallocates on a monthly basis. This way the strategy captures most of the up trends and avoids most of the down trends. If nothing is trending up the strategy invests in “safety assets” (i.e. cash, treasuries, gold).
How do I implement The 8% Rule strategy?
We make it simple. Immediately when you subscribe and every month thereafter, we will send you an e-mail describing exactly what The 8% Rule strategy is recommending. You simply have to make the necessary changes in your investment account.
What are the drawbacks of this strategy?
No strategy is perfect. There are two main drawbacks of this strategy, both of which we consider acceptable.
The first is potential under-performance during bull markets. If stocks are racing higher, this strategy will not keep up over every timeframe. But, as can be seen in the annual returns table, very often it will outperform even when stocks are doing very well. And remember, the strategy focuses on avoiding losses so you’ll keep more of your gains!
Second is tax implications. We are not financial advisers or tax professionals and can therefore not give personalized advice. However, since the strategy rotates between assets based on what is trending up, there will be realized short-term capital gains/losses with this strategy. Short-term capital gains are taxed less favorably than long-term capital gains, so it’s up to the individual to decide if this strategy is right for them. Again, we can’t give personalized advice, but preferably a strategy like this is implemented in a tax-advantaged account such as an IRA, 401(k), 403(b), or even Health Savings Account.
I have another question.
E-mail us anytime at admin@the8percentrule.com.