Over the years we have developed an approach to cash flow generation that requires a different perspective on how to participate in the markets.  We use specifically filtered, Large Cap, domestic stocks to generate monthly income for portfolios desiring to take advantage of the natural ebbs and flow of market moves.  We are able to accomplish this while maintaining quality diversification consistent with Ecclesiastes 11 and without taking on disproportionate risk.  The strategy we use is generally considered to be the conservative approach for income generation using equities.We generally use this strategy coupled with the Buy and Hold Strategy, Capital Preservation and/or Life Insurance. If you would like more information on these offerings feel free to contact us at 888-641-5533 or click here.

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In order to explain this strategy we use the analogy of a commercial real estate rental property.  The property is purchased with two things in mind.  One is the potential for growth and the other is for income generation.  In order to keep income flowing, renters are moved in and out of the property to keep the property occupancy at an optimal level.  Over the years the property will generate income, as long as it is managed properly, even if the value of the real estate market drops during that same period of time.  The owner/manager of the property knows that if they continue to manage it properly then income can continue to be generated while waiting for the market values to return.In the US market we have the ability to purchase stocks while at the same time selling another the ability to purchase it from us for about the same price we just paid.  In order for them to have the ability to purchase it from us, they are willing to pay a fee at the time of purchase.  We've created parameters that specifically filter out stocks that do not meet our stringent criteria, so what we have left are the stocks generally considered to be more stable.  We then go through each of these to identify the stocks positioned for projected growth over the coming month.  Once these are identified, then we look to see the amount of income we can generate from selling another the ability to buy this stock from us.  If we can find stocks that fit our stringent criteria that can generate an immediate cash flow of 1.5 to 2% for that month, then we go ahead and take the position for our clients.This 2% per month target, when achieved does not necessarily mean the accounts will go up by that same amount.  The value of the portfolio is connected to the underlying stock and can decline rather than act as we expected, thus causing the value of the account to go down as well.  The advantage is that if 2% is garnered at the purchase of that stock, then there is an immediate equivalent protection in the event of a decline in that stock.With our stringent filtering initially and heavy critiquing of the chart before entry, we are able to diminish the risk of stocks going south.  Even with this diligence, we cannot alleviate all risk of a downward move.In the event of a downward move, we have specific strategies we use to create the monthly income stream from that position, even while it is down.  For example, if ABC stock was purchased at $25/share and it declined to $20/share then that is a loss of $5/share in stock value.  If over that same period of time $3 of income was generated on that position, then for you it would only be down $2/share.  This dampens the effects of negative market swings, thus reducing the risk for you.We have found it to be a very effective method of management through some of the most challenging years the market has seen in a generation.  We believe it offers a nice alternative to the Buy and Hold Strategy or the Capital Preservation Strategy.  We maintain diversification through predetermined parameters we've put in place to keep us consistent with the principle of diversification found in Ecclesiastes 11.Our clients who use this strategy usually couple it with our Buy and Hold Strategy, Principle Protection Strategy and/or Life Insurance.  If you would like more information on these offerings feel free to contact us at 307-586-5449 or click here.