The strategies are built to invest in assets that are going up and reallocate on a monthly basis. This way the strategies capture most of the up trends and avoid most of the down trends. If nothing is going up the strategies invest in “safety” (i.e. cash, treasuries, gold). How quickly the strategy switches to safety and to what extent depends upon the particular strategy. The 7% Annuity, for example, is our safest strategy and will tend to move to safety quickly and with relatively high allocations compared to our other more aggressive strategies.

We make it simple. Immediately when you subscribe and every month thereafter, we will send you an e-mail describing exactly what the strategy is recommending. We even include a helpful calculator to tell you exactly what to buy based on your account size and risk tolerance. You simply have to make the necessary changes in your investment account.

No strategy is perfect. There are two main drawbacks of this strategy, both of which we find to be acceptable and manageable.

The first is potential under-performance during bull markets. If stocks are racing higher, this strategy may not keep up in every calendar year. 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, there are tax implications to be considered with this strategy. Since the strategy rotates between assets based on what is going up, there will be short-term capital gains 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.

E-mail us anytime at admin@the8percentrule.com.