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Investment & Life

Investment & Life. Investment Option and Strategies. Agenda. Case Study Investment Strategies formulation LZ Products Q&A 401K, Real Estate, investment mistake, and etc. case. Tuition/Living Cost will inflated at 7% annually Current tuition/living cost for BA $ 280,000

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Investment & Life

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  1. Investment & Life Investment Option and Strategies

  2. Agenda Case Study Investment Strategies formulation LZ Products Q&A 401K, Real Estate, investment mistake, and etc

  3. case Tuition/Living Cost will inflated at 7% annually Current tuition/living cost for BA $280,000 本剧故事，纯属虚构，如有雷同，实属巧合。

  4. Case #1 Sean have 5 years boy and smart Within 15 years, boy will go to Stanford Sean have $300,000 Budget for his kid Now Sean already is 60.

  5. Case #2 • John and his wife are having their second child. They plan to send their kids to Stanford, but not sure if they will have enough money to do it. Only thing they have is both of John and his wife have jobs, which paid them about $200,000 annually. They are young… • John’s family has cost as following: • Income tax: $60,000 • Daily Cost: $24,000 • Kids Related: $20,000 • Mortgage: $60,000 • 401K: $30,000 • Others: $5,000

  6. Case Study • Case #1: (Return Rate) • Inflation 7% • Sustainable • Practical • Low risk • Case #2: (NPVCash FlowCalculation) • Cash Flow/(Rr-Rg) : $1,000/(7%-5%)=$50,000 • Cash Flow Return Rate >7% • Annual Growth Rate >5% • With 10% sustainable return: >$91,000

  7. Strategic Investment Process Risk Return Cash Flow Example Summary Take Away Top 100 Hedge Fund in the market

  8. Strategies Formulation Process • StrategicLevel • Macro and/or Micro Econ Analysis • Market and Scenario Analysis • BusinessEvaluation/Operation Assessment • Tactic Level • Riskand/or Return Analysis • Operation Simulation (Crystal Ball/ War Game) • Operation Design • Financial Lab • Demo/Performance Tracking • Product finalization • Product Promotion • Business Operation

  9. Risk • Risk vs. Rich… • Symptoms • Catching up inflation… • Opportunity Cost… • Solutions: • Investment Size • Time Frame • Life time event • Profit Withdraw • Unavoidable even without invest in anything

  10. Return Full Capacity Potential… Reasonable Return… Goal Orientated Rate… Mortgagee Rate… WSJ Prime Rate… Libor… Banking Interest Rate… Income Tax Rate…

  11. Cash Flow Fluctuation Wiped out Balance Duration Loss Reserve Cash I/O

  12. Option Strategy Example Writing straddle hedging via Long butterfly Following writing Call/Put Long spread

  13. Strategies Formula Holding Capacity 1/3 (FC Gain 52%) Loss Reserve 5% (5 years) Base Rate WSJ/Libor/Mortgage Income Rate 20-80 Return Expectation 500 to 1000 Over LIBOR Total Return 1500 to 2000 BP

  14. Summary Sustainable Tri-directional Affordable Marketable Practical

  15. Take Away • Target • Over 10% gain • Sustainable • Min Balance below $100,000 • Min Duration within 5 years • Within one market: Mission Impossible • Solutions: Combination of Stock, Option, Future, ETF, Index, Commodities, Forex, Real Estate, and etc. • General Principle • Taking Care of Risk • Clear Exit Strategies

  16. Top 100 Hedging Fund Top tier: 15%-123% Average: 5%-20% Balance: $100,000 Duration: 5 Years

  17. LZ Capital Products Targeted Customers

  18. Products From LZ Capital • Generic Accounts • Flex-D • Return Expectation: 6-9% Over Libor • Guaranteed Rate: WSJ Prime Rate • Plus 20% of Profit Sharing • Min Balance: No requirement • Min Duration: 1 Year • Magic-I • Return Expectation: 10-15% Over Libor • Base Rate: 30 years Fixed Mortgagee Rate • 50% of Gain up to 5% as Loss Reserve • 80% of Gain unlimited as Income • Min Balance: $25,000 • Min Duration: 1 Year • Customized Accounts • CSA(Customized Single Account) • Min Balance: $50,000 • Min Duration: 1 Year • CCA (Customized Comprehensive Account) • Mortgage (Interest Focus) • 401K(Retirement Focus) • Brokerage (1 Year Return Focus)

  19. Customized Single Account Following the Email From LZ Capital It is slave account You have total control of cash flow LZ Capital fully control of trading Account operating regarding to Agreement Income Tax arrangement

  20. How LZ Capital Fit Into Your Money Looking for sustainable 10%+ gain… $150,000+ in your 401K… Accessible Home equity… Mortgage and other loans… Extra Cash… Commitment for a whole year…

  21. Q & A Goals vs. Plans… Strategic vs. tactic mistakes… Risk vs. Return… Exiting vs. entering Strategies… Liquidatability vs. Duration… Balance vs. Return… Optimization vs. Opportunities… NPV method… Moving evaluation approaches… Possibility mindset… Avoidability of the game…

  22. Qualification to Playing Strategies Macro Econ Micro Econ Tech Analysis Fundamental Analysis Derivatives 3 to 5 years trading Experiences Market Research/Business analytics Political vs. Econ

  23. Personal Investment Options • Highly Liquidable Equity • Stock • Future • ETF • Derivative • Moderately Liquidable Equity • Real Estate • Commodity • Stamp • Wine • Liquor • Low Liquidable Equity • Antique • Etc.

  24. Real Estate Market • It is Commodity, Saving in most, Investment in some degree • Natures: • Took many years to build up the value • Took few years to crash • Low liquidation • Risk to be leveraged about 5 time • Major Function • Great saving tool to against inflation • Key G/L factors • Mortgage Interest Rate • Tax Benefits • Cash Flowing • Transaction Cost • Key is Exit rather than Enter

  25. Housing Recovery Roadmap Macro/Micro Econ Job (Unemployment, Available, Job vs. Population) Housing Trading New Permit Application (Qualy and Quanti) New Housing Invent (<5 Month) Payroll (Quanti and Quali) Job Distribution Housing Trading Environment Loan Requirement (Down payment, Rate, and etc.) Other Tactical Index…

  26. Real Estate Investment Key Factor • Risk • Price downside • Interest Rate Fluctuation • Property tax, management, maintenance, and other costs • Return • Sustainable Rent Income and/or Saving • Tax advantage (Limitation) • Cash Flow • Leveraging mortgage • Net Present Value Measurement

  27. 401K • Benefits: ($5,000, $5,000-$8,500) • Companies’ Match ($5,000) • Tax Benefits (30%-50%) • Annual Cap ($15,000) • Total Value of 401K % of Benefit % of Active Inv • $50,000 20% 33% • $100,000 10% 16% • $150,000 7% 11% • Entering & Exiting • Entering biweekly or monthly basis • No Exiting Strategies • Actable Transactions • Take Loan Out ($50,000) • Allocate to Money market fund • Adjustment of Portfolio (100% of Active Investment) • Self direct IRA, IRA Loan, Trust, and etc. • Takeaway • Market fluctuation before your retirement way over the benefits • 10% sustainable return over all scenarios will change the game • You must do something

  28. Stock and Derivatives • Traditional Strategies • Buy and Hold • Diversification • Alternative focus • Pricing Pattern • Short and Hold • Crossing Time • Crossing Markets • Individual Stocks are typical “击鼓传花GAME”

  29. SP500 Since 1928

  30. SP-500 Since 1970

  31. DJ Since 1902

  32. DJ Since 1992

  33. $1 Million Powerful Cash • Real Estate: $300K cash to secure $1M Investment • Gain Rate 9% Amount $90K • $500,000 401K • Gain Rate 11% Amount $55K • $200,000 Equity and/or Derivatives • Gain Rate 15% Amount $30K • Annual income $175,000

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