Would you like to receive monster-sized checks, drive a different car for every day of the week and own multiple estates across the globe; all while underperforming the market? I know…I know…sounds too good to be true, right?

1. How to Underperform
the Market and Get Paid
Like a Rock Star

2. Would you like to receive monster-sized
checks, drive a different car for every day of
the week and own multiple estates across
the globe; all while underperforming the
market?
I know…I know…sounds too good to be true,
right?

3. But it isn’t. You see, a small fraternity called
fund managers can actually afford to live this
way. Best of all, you help fund their lavish
lifestyle.
Doesn’t sound fair, does it?

4. Well, without your support it wouldn’t be
possible. They live in the lap of luxury, raking in
(your) money from (their underserved) fees.
It’s no secret; most mutual funds and hedge
funds underperform the market. In fact,
according to a study conducted by Motley
Fool in 2013, only ten of ten thousand actively
managed mutual funds were able to beat the
S&P 500 consistently over the past decade.

5. Now, I’m no mathematician, but it seems like
the odds of finding a top-notch money
manager… is just as good as having a perfect
March Madness bracket. OK, maybe it’s a
little better, but I think you get the picture.
Year after year, these funds print
money…well, not really…they just take yours.

6. Here’s what they’re all about:
First, everything is relative in this business. A
good or bad year is determined by how a fund
performs relative to its benchmark, in many
cases, it’s the S&P 500 index.
According to SPIVA (S&P Indices Versus Active
Funds), in 2013, 56% of large-company funds
and 68% of small-company funds failed to beat
their benchmarks. Year after year, it’s the same
old song and dance.

7. Check out this chart taken from
the SPIVA( US YEAR-END 2013 REPORT), the
full report can be downloaded at:
http://us.spindices.com/resource-
center/thought-leadership/spiva/

9. Now, a fund can have an “up” year; however,
it’s all relative. For example, if the “market”
is up 20% and the fund is up 10%, the fund is
underperforming. However, they can always
advertise their performance in a positive
way.
On the other hand, if the “market” is down
10%… and the fund is down 8%, the fund is
outperforming. Again, this can be twisted
into being a positive.

10. What if the majority of funds do poorly?
Well in that case, they can compare
themselves to their peers, not the
benchmark.
As you can see, everything can be spun into a
positive. They are graded on a
curve…unfortunately, the real-world doesn’t
work that way.

11. Bottom line, if you simply bought a product that
resembled the S&P 500 index, you’d beat the
majority of mutual funds out there. I know, it
sounds crazy, but it’s true.
You’d think with all those advanced degrees in a
room, an army of analysts at their disposal and
countless hours of research, that these funds
would have an edge.
I know it seems unbelievable but facts are facts!

12. But it gets worse.
The average mutual fund will charge you around
1.25% – 2.5% in fees, this covers the
management fee, administrative costs,
marketing and advertising fees.
That’s right folks… next time you see your
mutual fund featured in a TV commercial, make
sure to brag to all your friends, because it was
your money that helped pay for the spot.

13. Also, keep in mind that transaction costs from
trading are not included in the “expense ratio.”
Not only that, but some funds will even charge a
loading fee (aka the f**k you fee).
This fee rewards the stockbroker who
recommended the mutual fund to you; after all,
they have to get in on the piece of the action.
Why would they recommend something to you
if there wasn’t anything for them to gain?

14. Now, when you join a health club, you pay a
membership, in return you have access to
their equipment and the tools needed to get
in shape.
When you sign up for a mutual fund, you are
charged a fee to pay the manager and their
staff, in return, you’re promised nothing
back.

15. In other words, your hard earned money
goes towards feeding their lavish lifestyles.
The game is simple, the more money
invested in the fund, the more money they
make in fees.
Of course, this requires marketing and
salesmanship to get the job done.

16. Nevertheless, everything is devised to sound
sophisticated and necessary. I know, because
I was once on their side. Working as a
stockbroker, I learned first-hand that a lot of
this business was simply founded on good ol’
fashioned sales and marketing.
Believe me; it didn’t take long for me to cut
ties with this dark side of the biz.

17. At the end of the day, the majority of these
funds offer the sizzle but not the steak.
Ironically, having your money invested in
these funds give off the impression that
you’re responsible and smart.
After all, you’re delegating duties to
“professionals” who know their stuff. But
let’s face it, we know this isn’t true. They
underperform while nickel and diming you in
fees.

18. So what gives?
The majority of investors are scared to take
on the responsibility of taking financial
matters into their own hands. If their money
manger underperforms, they can use them
as a scapegoat.
However, if they take control… it’s all on
them. Of course, this can be very
intimidating at first.

19. But you know what?
No one is going to care more about your money
than you. A money manager is going to get paid
no matter what.
Ultimately, their goal isn’t outperforming the
market; it’s to stay level with their peers (other
money managers). As long as they can add
AUM (assets under management) and collect
fees, they are doing their job…AKA well for
themselves.

20. How About Hedge Funds?
Sadly, hedge funds are even bigger fee vacuums.
In Sinon Lack’s book, The Hedge Fund
Mirage, he offered some incredible statistics
pertaining to hedge fund performance and fees.
For example, from 1998 to 2010, hedge fund
managers earned $370 billion in fees. However,
their investors earned a whopping $70 billion in
investment returns.

21. In the summer of 2013, Bloomberg
Businessweek, wrote a piece titled: Hedge
Funds Are for Suckers, debunking the myth
that hedge fund market wizards consistently
outperform the market.
As mentioned earlier, this isn’t breaking
news…it’s been well documented for years.

23. Advantages You Have:
1) Mutual funds are generally fully invested
at all times; they are competing against
their peers, not the market.
On the other hand, you have no
competition. With that said, you don’t
have to be invested all the time.

24. Often times, being in cash, is the best market
position for you to be in, but not for them
since their business model is to invest your
money so they can get paid.
In addition, you can be more selective with
your investment decisions.

25. 2) Using options to generate better
opportunities and success. The probability of
a stock price rising is 50/50; however, with
options you can structure positions that skew
the odds more in your favor.
In addition, options are leveraged, meaning
you can use less capital to achieve better
returns. Not only that, structured option
strategies allow you to define your risk and
hedge core investment positions.

26. Best of all, you don’t need a specific market
condition in order to invest with options. In
fact, they can be used during periods of high
or low volatility, bull and bear markets…as
well as choppy and sideways markets.
Now, do you want to delegate your finances
to funds, which underperform and hammer
you with undeserved fees? Of course, it’s
going to take some courage on your side to
end this vicious cycle.

27. For years, I’ve helped investors take this
monumental step, showing them methods
and strategies that could potentially lead
them to financial freedom.
I understand that not everyone has the same
time to devote to their investments.

28. That’s why I’ve created specific courses for
investors who are strapped for time. I believe
through the right investor education, you’ll
gain enough confidence to take control of
your financial future.
That’s why I frequently send out emails to
subscribers that highlight: trading
opportunities, timely market analysis, free
reports, video lessons and much more.

29. In addition, I’m always available to answer
questions via Facebook or Twitter…you can
even email me directly.
In the end, I’d like to maintain a lively and
active community, where we all learn from
each other. After all, these funds aren’t
helping our cause.

30. Now, I’d love to hear your thoughts on how
we can stop these fee thirsty funds and their
shenanigans, in the comments section below.
Also, make sure to sign up to receive my
mega-valuable emails about investing and
the financial markets. In addition, I’ll send
you my latest free report.