The bull market has been rampant in the past 10 years that our wealth gets accelerated function exponentially.
This leads us to think that wealth can only move in one direction and it leads to that much easier to achieve financial independence by pro-rating your financial model accordingly.
The risk is decluttered as one grows a sense of safety net thinking their model works that no one else could ever think of in the past.
Let’s illustrate it with the 3 examples.
This is a lottery system that’s being rigged openly by the government with the odds going against the favor of the buyer.
Despite knowing the odds, there are queues everywhere for dreamers to struck that once in a lifetime deal, provided they are extremely lucky.
The smart person who thinks the bull market favor the system anyway decide to take the “premium” and pocket the money. Anyway, everyone’s a winner in the bull market unless proven otherwise right?
That’s definitely a solid passive income, receiving week after week, until the day your luck runs out.
Everyone hates the word when it comes to insurance.
It doesn’t has a vibe as much as Singaporepools and you cannot shout “huat” as loud as much as you wanted the money.
Of course, it’s a risk tool, more than what half the population thinks as a wealth tool.
Insurance company typically gets bigger over time as underwriter keeps coming up with new products that attracts new buyers.
This is also the reason why Warren Buffett likes the insurance industry so much.
Their main attractive point isn’t necessary from the deal of the premiums they collect but rather the float in advance for claims to be paid later on, if there is that is. An insurer’s float is the true mechanism of the company’s survivability.
Speak of that present value of money.
Selling Put Options
Derivatives is an interesting play to those who understand the product.
It isn’t for the faint hearted or beginners because it appears a lot easier to common folks than what it should be.
It combines a flexibility concept of both the Singapore pools and Insurance advantageous point that you can be part of it.
It sells on the idea of consistent passive income which attracts many people because you can get ideas that are frequent in nature.
Because the timeframe is also usually short, annualized returns are usually extrapolated in nature.
Many strategies are proven a winner in the bull market until it’s proven otherwise.
We are way due for a nice reset in the ecosystem of our community.
Thanks for reading.
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