Accelerate Your Wealth

My name is Chuck Whitman and I build great traders that lead great lives. Traders I've trained have generated in excess of a billion dollars in revenue and are found at some of the largest proprietary trading firms and hedge funds in the United States. Accelerate your wealth with the WAM dividend accelerator. 

Every investing and trading strategy has risk, the WAM Dividend Accelerator has a another potential risk that must be seriously considered before engaging in the strategy and that is you must work with a tax professional that understands your specific tax circumstances to understand if this strategy is right for you and how you should manage it. What is the WAM Dividend Accelerator strategy? The WAM Dividend Accelerator Strategy is a strategy that invests in dividend paying stocks with hedge mobile options and identify stocks that pay a combined return of 25% or greater per year in dividends and collected option premiums. 

Nine reasons to invest in the WAM Dividend Accelerator strategy. One, you can invest in a strategy that can produce 20% A year or greater returns for years after the investment. Some of these investments you could literally hold 20, 30 years, even a lifetime, even pass on to your kids. Two, you invest in a strategy that makes money and five out of six market environments, including making 20% a year or greater in years in which the stock makes nothing. So what are the six market environments? Up fast, up slow, sideways choppy, sideways quiet, down slow, down fast. Those are the six environments. The WAM Dividend Accelerator can make money in five of the six environments, the only environment it will lose in is down fast. That's right, you heard me, it can actually make money down slow, it can make money when the stock actually goes down, provided it doesn't go down too far, but five of the six environments, it makes money. Three, you could invest in a tax advantaged strategy. Now this is dependent on your situation, it's dependent on your structure, it's dependent on your country. So you have to check this out for yourself, but invest it in the right way and in the right situation, these are stocks that you will hold longer than a year. So they are treated as long term capital gains and if you do it right, you might hold the stock for forever and never sell it. So therefore never pay any taxes on the stock. So but again, it depends on the structure you create and your status. Number four, you're investing in liquid investments. I cannot emphasize this point enough, these investments that you invest in, many of these you can be out in one to three days tops, and a lot of cases you could be out in a few minutes. Compare this with other cash flow strategies. Most cash flow strategies are illiquid, they're great, but they aren't liquid, you can't get out of them tomorrow. You own a business that pays you, well you can't sell that tomorrow. You own real estate that pays your rents, you can't get out of that tomorrow. You own something like Property Tax Notes or things of this nature, you can't sell those tomorrow. Bonds are something you could sell tomorrow if they were treasuries, but even some corporate bonds are hard to sell, not this strategy. This strategy is liquid where you can get the money if you need to. Five, if you set up the account in a margined account and specifically in a portfolio margined account, you don't even have to put up very much money to fund the strategy. So the amount of the returns when you make 20% or greater in a year, it could be substantially bigger if you look at return on margin. Six you can borrow against the stocks if you need capital, your stocks are liquid banks are happy, clearing firms are happy to loan you money against them. You could also, if you have it in a margin account, you can actually take a withdrawal and just make sure you have enough money to fund the margin. Seven, oh seven's is a good one, but you're going to have to wait, yeah. Okay eight, you gain cashflow without dealing with all the pains in the ass of a lot of other structures. The pains and acid of real estate, having to buy it and clear title and have title insurance and deal with tenants that are a pain in the ass and damage. Owning businesses, having to deal with employees and regulations and regulatory agencies. This strategy is hassle free. And finally number nine, the time. For a strategy to qualify for infinite wealth, you have to be able to do it in 10 hours a month or less or two hours a week or less. Well the WAM Dividend Accelerator can be done in one to two hours a week tops, so you can totally do this while you have a job, you can totally do this or you're retired, just having a great time. You can do this while you're chasing your passions and living in your mission doesn't take long. 

Alright, so I want to share with you a story about how it all started. Now in my early days as a trader, I was heavily influenced by my dad and traders I was around that love trading commodities. So the 80s was the great boom, the 70s and 80s with the great heyday of commodities and commodities made many many traders millionaires. So I was around a lot of these people that made it made or lost lots of money and commodities, many of them became millionaires and commodities. So I was drawn to that. Just think of the movie Trading Places, it's  one of my all time favorite movies, was about commodities. That was when I was in high school. Okay, so I was just because of my circumstance, I was kind of a perma bear. The crash happened in 1987 and that was a big deal to me. I was 18 years old during the crash in 87 and I was on the exchange floor at the Chicago Board of Trade and I saw the chaos, I saw the fear, I saw wonderment like was the market even going to open tomorrow? Was the world coming to an end? I didn't know I was only 18. But I was in the midst of it. I never forgot that. 1987 seemed like 1929. So then as the stock market started to rally out, I knew people that made millions being short in 87. I had an attitude of being kind of a perma bear. I was always kind of bearish. I learned a lot from that, because that was a massive mistake. I missed out on one of the great decades of stock growth because I was attached to being a perma bear. Right. So for years, I watched the market go up, and I wasn't invested. But all that started to really change in 2008. Now, one of the reasons I was always a perma bear was I looked at this chart right here and this chart basically shows the differential between the dividend yield on the s&p 500 versus the two year bond and what you can see is all through the 90s, all through the 90s, the dividend yield was really low, and the two year yield was really high, so it had a big negative differential. So quite simply, like why would I invest in a stock that pays 1% dividends or 2% dividends if I could invest in a two year bond that paid me 6, 7, 8 percent risk free, right? So the stocks need to make at least that and then some to account for the risk. So oftentimes, I just didn't see the logic. But when we got into 2008, we got into 2009, look what happened. It was the first time in my career that this ratio flipped the other way. Were stocks were paying significantly more in dividends than bonds were paying, Treasuries are paying. So that got me thinking that stocks are actually cheap. 

Okay, so what did I do? In '08 and '09, I decided I went out and I started doing scans and I started looking at dividend paying stocks, and I was able to come up with a list of 10 stocks, all wih dividend yields greater than 10% per year that were trading at 33% discounts to the net current asset value, and they all had annual option premiums as defined by the 30 day 30 Delta call of greater than 25%. So I started looking at these and I'm like these are cheap. So we actually bought, I went to my partners and we put up $6 million between the three of us to do three separate investments. We bought this basket, we put $2 million in this basket of 10 dividend paying stocks, we put $2 million into closed and corporate bond fund or sorry, closed in Muni funds, and we put $2 million into closed and corporate bond funds and all of them were the muni funds were yielding over 15%, munis were yielding over 15% a year, essentially tax advantaged and the corporate bond funds were all yielding over 25% a year. Some of them were yielding 40-45% a year in corporate bonds, that's how crazy everything was. So I went to my partners, we put together $6 million and off we went, we bought $6 million, including $2 million of these stocks. Now the crazy thing was was that right after we did that, the first week, the first week, we were down well over a million dollars. We at one point we had a $1.7 million drawdown on the $6 million that we invested and my partner's came to me and they're like, Are we okay, like, are we good? And I was always known for having great planning. I was a great strategist and planner and trading. So they're like, what's the plan? What are we doing? And I was like, I don't know, I didn't know. I knew these things were cheap, I could see the valuations, but I did not do a good enough job of creating my plan. So I'm like, I need to step away and I need to think about this, I need to get really clear about what I'm doing. Because this is a good example where you can buy something cheap, and it just gets cheaper and you could get killed buying something cheap watching it get cheaper. Alright, so what I did is I stepped back and I thought about okay, why did we do this in the first place? All of these things, we invested in all these things we put money in, we did it for the yield. We did for the yield. So the price went up, that would be great, but I'm looking at it going okay, I'm making 35% or more in each of these stocks, I'm making 15% or more in Munis and making 25% or more in corporates, these are all about yield. So I thought about this and I'm like, Okay, I need to think of this differently. I can't think about the price. I just have to look at the yield. 

So I want to share with you an analogy. So imagine you buy an apartment building for a million bucks and this apartment building nets $200,000 per year after expenses, so you get a 20% return. At this rate of return it'll take you 3.6 years to get your money back. When you buy this apartment building, are you out demanding or you're ordering an appraisal every week? No, you're not. One, because it's expensive and time consuming to get an appraisal, but to you did't invest in apartment building for it to go up in value, you invested in it for the 20% return. So if the property goes down 50% You don't really care. Of course,  you don't want the whole thing to disappear, but you don't really care because you're getting 20% a year on your capital. Might not like it, but you don't really care, you're getting a 20%. I want you to compare this where if I bought a spec home, if I bought a spec home for a million dollars that has no return, it has no yield, right? In fact, surprise, a burn rate. I'm paying interest potentially to the bank, while I'm paying property taxes and insurance to keep it up. So when I do a spec home, the only way I make money is to sell it for more than a million dollars and motivated as quickly as I can. But the apartment building, I have 200,000 year coming in every year, when you go look at some of the really wealthiest people, they own lots of real estate that just cash flow. So just cash flows, and they don't really care about the value of the building until their depreciation expires. They just hold it, they hold it for a long, long time. So I want you to see is my thought about this and I'm like I'm invested in this for yield, not for price, I don't really care if the price goes down, I'm still getting my 15 by 35%, my 15% my 25% I don't care. That created a powerful frame for me and that gave me clarity of what was an investment in what was a trade. An investment is something you put money into for yield, a trade is something that you only make money through appreciation and selling higher. So this is a radically different view, most people get in investments is something they hold for a long time. That's not the case here. Investment is something that pays you yield. So if you own Amazon, and you've owned Amazon for 10 years, you have a trade on, I don't care what you say, Amazon doesn't pay you anything. The only way you're gonna make money is to sell Amazon for more than what you bought it, you have a trade not an investment. Once you get clear about this, this is a powerful frame for how to think about everything, every opportunity that comes your way, everything that you have in your portfolio. 

Now one of the things that we're always doing with our students is we want them to become infinitely wealthy and infinitely wealthy is when our passive income is greater than our monthly expenses. When this is a case, we never have to work, when This is the case, we work on things that we wanted to. When this is the case, we set our schedule the way that we want, we have ultimate freedom. I talk about  being rich, and there's being wealthy, Rich is having a lot of cash. You could have 10 million in cash and you're rich, but you're not wealthy. Why? Because if you don't invest that 10 million, every month, you're becoming poorer. I see a 50,000 a month and living expenses. Well, month one you have 10 million month two, you have 9,950,000, month three of 9,900,000, you're getting poorer.So you have cash you can deploy but you're getting poorer. Now when you're wealthy, you have cashflow constantly coming in and the great thing is so when I look at Person A with 10 million, I may have Person B and person B might only have 4 million, but they're invested in cash flow assets that pay them a million dollars a year in cash flow, let's just say 1.2 million to keep it easy. Or every month I have 100,000 coming in, 100,000 coming in, 100,000 coming in. So if they spend 50,000 a month while they had 100 coming in, they spent 50, They still a $50,000 more going into savings. So at the end of month one, there now 4,050,000, month two, they're at 4.1 million, Month three they're at 4.1 5 million, they're getting wealthier, they can't even spend it all, this is wealth. Okay, so what I want to share with you is there's a powerful frame here, it's really important to understand. We want to do things that give us large hits of cash appreciation, and that cash builds a war chest of capital, just like the 10 million. You make 10 million you've got a war chest of capital, then what you do is you become opportunistic as to when you buy cashflow. So one of the things I always say is cashflow is not a consistent endeavor, it is an opportunistic endeavor. You can't just buy cashflow whenever you want you need to wait people get into trouble because they buy bad cashflow, expensive cashflow, they're investing to get 4% 5% and then something happens in the market and it's a loss and they don't have a cushion to ride it out. So opportunistic means that we just wait for certain conditions in no certain conditions, we deploy our capital and when we do this, and we set ourselves up to be wealthy. When we do this, we set ourselves up to be in long term investments that cash flow for years and years to come. 

Well in the WAM Dividend Accelerator, that's what I did back in 2009. I deployed the capital because everything was super cheap and then that created a basket of cashflow that could pay me for years. Now full disclosure, I was still in my trading firm and when I sold out of my trading firm in 2013, I had to leave all that behind. It's kind of a bummer because just for example, one of the stocks I invested in in our portfolio was a stock called Ashlynn and you can see I invested in Ashlyn on January 30 2009 and roughly $4 I think it was 408 to be exact. Okay, so look here on the right, this is just done on January 2, we bought it cheaper, but if we'd bought it at $5.39, and you bought 100 shares that stock in 2001 in September of 2001 is $86.35 and right now, it's much higher. It's like last time I looked it was $95. Okay, so you had a stock that went from $4 to in this case at $86. In addition, it had a 10% dividend yield, which by the way, shortly after we bought it, they halved it, they cut it in half, but over time that recovered and if you look now the annual dividend yield is 21% a year, just the dividend yield because dividends have grown over that 12 year period. That's one of the things rich people do. They buy great companies when they're depressed for the dividend and then over time they've raised the dividend, the company keeps making more and more money the dividend grows and so a 5% dividend, a 10% dividend, like in this case grows to be a 21% dividend every year. Okay, so pays a 21% dividend yield, but then we're also trading calls against this position and in this position in September 21, the current dividend yield plus call premiums were 188% a year, 188% and the average annual return over that 12 year period was 103%. How would you like to be in an investment that made 100% every year. Now that wasn't exactly every year, it went up and down. But it had years it made 150 200%, it had years it made 20%, but on average is making 100% a year. That's just one of the names and that was one of the best ones for sure, but it was just one of the 10 we'll look at that you don't you don't need many that are that good to do really, really well and then this is a stock 2024, 15 years later, you can still be holding it but nominal. 

Okay, so and this investing versus trading, I wants you to think about this. Many people who say their investors are just traders and if you are a buy and hold investor, which there's a lot of them out there, I haven't one of our masterminds, we have a student who is a buy and hold trader and I said to them, I said, you know, it's when you're buying an old trader, which you really are as a trader, it's in hope mode, you have no plan, and you're just hoping it goes up and hoping it does not go down. Buy and hold is not a plan. It's not a strategy. Great traders have a plan and they execute that plan. So we want our money working for us, we want to have the velocity of money on our hand and are working in our favor. So we're examining all of our investments, we're examining all our trades, and they need to be performing or we go find something else. All right. So I'll show you a really powerful schematic here and then we're gonna move on. This schematic basically shows that if you can understand economic cycles, this gives you a roadmap of how to think about investing and trading, how think about your investments in your overall portfolio. Okay, so when we're in a period of growth, you want to invest in things that appreciate because they can have a massive increase. How many stories do you know whether it's crypto or its stock prices like Nvidia or its business valuations, sports team valuations, whatever the case is, you go back and you look since 2011, even since COVID, they've exploded because we've been in a period of growth. Now, when we go into recession, like we did in '08 and '09, or we did during COVID, the value of assets can fall really, really fast. So when we're in a growth, stage appreciation, the value of assets keeps going up and up and as such cash flow rate of returns go down. There's a premise here, it's really important to understand, valuations can go up and down and up and down, but cash flow actually remains relatively constant. So if we go into a recession, I want you to think about how often do you see a landlord cut rent? You don't, it's very, very rare that a landlord reduces rent, if they if the economy is struggling, what do they do? Well, if you renew your lease, or you sign with us, we'll give you three months free, we'll give you a signing bonus of two months or something like that. But notice what they're doing is they're not changing the headline rent, they're just adding bonuses. So rents in a recession tend to stay up and then when we go through growth, rents often get raised, but they don't, they won't necessarily go up anywhere near the rate of appreciation. So in this formula, in this formula, if we buy a condo for 300,000, and it pays 60,000. In rent, this is a 20% rate of return. Now I want you to look at it, if we go into recession and that condo goes down by half, goes down to 150,000, well, the rents are still 60,000. So if you could buy it at 150, instead of 300, your rate of return is now 40%, your rents are the same, but the assets cheaper, it's now 40% rate of return. So if you can buy it at 150, now you have a 40% rate of return and then if you hold it for another several years, you can raise the rents. Then when you raise the rents, you can see your rate of return goes to 56%. So this model is the model of how you want to think about when you hit the gas and buy things for appreciation and when you switch and you think about buying for cash flow, you want to buy cash flow, and recessions buy appreciation and growth. 

I want to show you an example of a sample portfolio that was put on in March of 2020. Now, when you look at March of 2020, you might say well, that's like an optimization and I could see why he would say that, but actually if you follow us and you follow my partner Mark, my partner Mark called the bottom of the market and march 24 of 2024 in his service. Clearly documented and a series of techniques and indicators we use show that the market was getting deeply, deeply oversold in late March of 2020, which was in a fantastic environment to begin putting names like these on, so this was a list, this was a portfolio of six names, Exxon Mobil, Chevron, Nucor, Walgreens, 3M and Realty Income Corp. So these are all strong dividend names, and they were all they were all considered to be dividend kings. In other words, these were stocks that they increased the dividend every year and you can see it here in the case Exxon Mobil, 37 years Chevron 33 years, new Corp, 47 years, Walgreens 44 years, 3M 62 years, and Realty Group 25 years. These are called dividend aristocrats. So these are stocks that every dividend every dividend investor loves. Alright, so we look at this and we're gonna go through this quickly, but essentially what you can see is if you'd put $600,000 into this portfolio in 2020, you would have had a return of over $714,000. since then. You would have had an average annual return of 27% a year and if you looked at your current dividend yield plus annual call premiums, it's 43% a year. So this portfolio if the stocks go sideways, in theory, you'd make 43% a year. Now, in practice, it always ends up being a little less than this, we use it as a target, but it's still amazing. 43% in the year that when the stocks go nowhere. So here's another example of a position that we've had on which is a Newmont Mining, we put this on a couple years ago, and we put this on is a way, we're very bullish gold, we put this on as a way to be invested while we waited for the gold theme to take off. So we've been invested in this since October 21 2022. We got long at $42.34 and essentially this Newmont has returned essentially 14% a year since 2022 and we are long one of the top gold miners in the world for when gold really does take off and is starting to in the gold miners really take off and they're starting to this could be a phenomenal, phenomenal investment. So we use the WAM Dividend Accelerator in several different ways. For you, if you have a stock that you maybe bought very early on, or was gifted to you and inheritance or you had stock options where you worked at a big company and you got granted stock at a low basis. This strategy is amazing and this is something I've had several students that I started working with them and we pulled out a stock like this and they started making 100, 200, $400,000 a year just off of stocks, they already had that were just sitting there. How would you like to find something? How would you like to find 150 grand a year that you didn't even know was there, that you didn't have to do virtually, hardly anything, right in one or two hours a week in this case with one name, it's simple. It's not even an hour a week, it's like 10 minutes a week, and you can pick up 150 200 grand a year. So if you have a little basis and a stock and you are interested in this, I highly recommend one, you look at the course, or two you can just reach out to me and we can help talk you through it. 

So there we go. The nine reasons I told you, I would give you number seven. What's number seven? Check this out. We're looking at these investments that can produce 20% a year or greater for years to come. What if I told you you could have an infinite return? What if I told you you have infinite return, how would that work? You'd put the money in the strategy, you'd have these returns at 20, 25, 40, 50%, but then at a certain point, what we would do is we would utilize a specific option strategy and we take all your money out. We's take all the money that you use to buy the stock, we'd remove it all so all you would have is cashflow. You'd have dividends and option premiums coming in, but no money out. So instead of making 25% a year you make infinite and take that original money and you go invest it somewhere else. It's totally possible. totally doable, we show you how to do it. So what day is it? Yeah, it's Tuesday. It's not just any Tuesday. It's Trader Tip Tuesday. That's why you're tuning in for Trader Tip Tuesday, where every Tuesday I come to you with techniques, like the WAM Dividend Accelerator, that help you take your trading, help you take your investing and help take your life to an elite level. I'll see you next Tuesday. Oh, I almost forgot we have a special gift for you. I want to give you the eight Irrefutable Laws of investing success. A lot of these principles that we talked about today and Trader Tip Tuesday are in the eight Irrefutable Laws. If you look in the comments below, you'll see a link, you can click on that link to get your version of the eight Irrefutable Laws. Use these laws whenever you think about investing and it will totally raise your game. Thanks again for watching.