Sure Ways to Make Money in the Stock Market ETFS, Mutual Funds, & Covered Calls

Updated: Feb 20, 2021

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Move your Money

Do you have all of your money just sitting around in a savings account somewhere? The first tip is to get it out NOW before it slowly rots under the pressure of inflation.

1. Start with Mutual Funds

If you want a passive place to drop your cash, start with a mutual fund. A mutual fund is a managed investment fund which funnels all the money from investors into investment securities. Basically, it’s like a basket of stocks, government-backed securities, debt instruments like bonds and mortgages, and money market instruments.

Over time, your initial investment will grow, allowing you to keep up or beat that pesky inflation eating away at your savings.

While it’s good to have some cash in savings in case of an emergency, you’ll want to put the rest of your money into something which yields a lot more.

As of October 2020, some of the mutual funds worth looking into are

1. Primecap Odyssey Growth (POGRX) 5-year return of about 13%

2. Vanguard Dividend Growth Fund Investor Shares (VDIGX) 5-year return of about 11%

3. T. Rowe Price Small Cap Growth Equity Fund (PRDSK) 5 year return of about 10%

If you want to open a mutual with lower fees, you’ll want to open one that’s passive rather than active (which is actively managed by a fund manager). Most passive mutual funds are cheaper than active ones. Once you’ve decided what kind of mutual fund you want, you’ll want to open an account with the broker for the fund by going to their website and opening an account. There are a few different types of mutual funds that specialize in different areas, such as sector-specific investments or international investments.

You can really get lost in the options so if you can’t decide but you’re more of a middle-of-the-road kind of person, then keep it simple and go with a balanced fund.

2. ETFs

An ETF, or an exchange traded fund, is similar to how classic mutual funds work except they’re traded on the stock market just as if it were an individual stock. The way it works is you open a brokerage account with say, WeBull or Robinhood (here's a referral link to get a free stock), you can then search for ETF’s and just buy them. It’s that simple. Really. You don’t need to register with a mutual fund broker and configure your portfolio, which is such a hassle. You instead buy the number of ETF shares that you feel comfortable with and then hold onto them. It’s more hands-on than mutual funds since now you’re buying or selling the ETFs in your account. I don’t know about you, but we like having control over what’s in our portfolio.

Some Of Our Favorite ETFS

1. S&P 500 ETF Trust (SPY)

2. Dow Jones Industrial Average ETF Trust (DIA)

These ETFs kinda just copy the growth of the S&P500 and DOW30, which are basically the top 500 and top 30 stocks in the US. When you buy an ETF, it’s like buying a basket of all these top US companies at once. So if you are a little wishy-washy on which stocks to buy, why not just buy a little of all of them? It’s like going to your favorite ice cream store and just sampling a little bit of each flavor.

Okay, let’s take a look at some of the growth of these ETFs.

The first one is SPY. As of October 1st, 2020, the 1-year growth is about 12%, 5-year return is 74%, and if you bought SPY ETFs in 1994, you would see a 650% return.

If you bought 1000 of SPY shares during that time, it would have cost you $50,000 and if you held onto them for 26 years, you would have about $330,000 right now.

We've heard of some people totally freaking out over buying anything remotely resembling stocks because they’ve been “burned” in the past. If you start buying right before the point a pullback occurs where the market drops, of course, you’ll feel like you’ve been burned.

But one of the key things to remember is to look at the big picture.

If you bought SPY in August of 2000, you’ll feel like you got burned but if you held them out until today, your ETF shares would have tripled in value. And what happened during the early 2000’s? The dot com bubble burst; one of the largest drops any stock index has ever seen in the history of the market. In the big picture, these dips look nearly negligible.

One of the nice things about SPY is that it also pays dividends, which means you’ll get a little extra free cash. You can then use that free money to buy MORE shares of SPY, which will compound your returns over time and make your portfolio growth look like a J curve! Seriously. Another note about some ETFs, like SPY, is that they typically have investment derivatives like OPTIONS. This leads to my final point and how I got financially free.

3. Options

An option is just an agreement to buy or sell 100 shares of stock.

That agreement has value and that’s pretty much what we do. We basically sell these “agreements” or contracts to people to buy our shares, OR we sell these “agreements” to buy other people’s shares

We do this EVERY WEEK and it makes hundreds and thousands of dollars on a Monday morning. It’s definitely more active than your average buy-and-hold ETF or just buying a mutual fund. But if done correctly, the annual returns can easily outpace owning SPY or dropping your hard-earned cash into a mutual fund.

Selling options is what brought us out of having to work a full-time job. We started out small, and with the discipline of continuously putting a little bit of my income into my portfolio each month and selling options, the returns made from selling these options are now paying all of my bills.

We’re actually having a special promotion right now if you want to start your membership today to start creating an additional income stream by selling options. . In our program, we teach how you can easily make a couple of hundred to thousands of dollars each month, just by spending 5-15 minutes on your phone. The first step is always the scariest, but we want to help you get to financial freedom, so you can pursue your life passions, and spend more time with friends and family. With that said, I hope you’ll take the time to INVEST your money sooner rather than later.