Let’s take a closer look at the real numbers. In 2014 to max out your 401K and IRA. A single investor will have a negative cash flow of $1916.67, and worst of all, you cannot touch that money until you are 65 years old. That could cost you close to $20,000 in management fees with investment returns of lower than 8% based on the old speculation module. But I know we can do better than this; in fact, much better. If you apply your capital to the Arbitrage Strategy—first, your money will never be frozen and you can have access to it whenever you want and not 30 years from now. Second, given the investment terms of a CD at 2%, a loan at a 5% and a preferred share yielding 8%, you will have a positive monthly cash flow of $172.68—producing free capital now so you can afford the lifestyle you deserve today! Unlike the 401K and IRA strategy that needs a lifetime to work in your favor, the Arbitrageur Investing System will help you reap the rewards of all your hard work now rather than later. Which do you prefer: pay the bank $2,000 a month for a chance to play later at 65, or have it pay you $200 now so you can enjoy the present without having to dream about the future?   Inside the Arbitrageur Investing System, I will take you by the hand and show you step-by-step how to achieve these financial returns. We will go from module one, describing how to raise investment capital, all the way to module four, where you will be able to create your very own income portfolio, just as I did. This system includes practical examples and case studies with an interactive and customizable calculator. Which will do all the hard math for you so you do not have to, thus meeting all your individual investment needs, conditions, and terms.   In module one, you will learn the 7 ways to raise investment capital from scratch. Plus, you will learn how to adjust your tolerance for risk according to your personal profile.   In module two, you will learn how to invest under a corporate structure in order to maximize your returns while simultaneously minimizing your taxes.   In module three, you will learn how to invest like Buffett. And pull the same exact $300,000,000 trade he pulled on Bank of America and Goldman Sachs. Here, you will learn how to beat the investment bankers at their own game.   In module four, you will learn all the technicalities and fundamentals of investing, including tools and calculators that will do and adjust the math of the system to your own particular investment situation—from trading in complex investment instruments like ETFs all the way to knowing how to operate on margin.

1. The Arbitrageur Investing System
The Truth Behind Investing
arbitrageportfolio.net

2. Agenda
• Introduction.
• Qualifications.
• The Psychology of Investing.
• Average Cost Down and Diversification.
• How the Professionals Invest.
• The Ones Who Can Beat the Market.
• Why Are We Paying Those Fees?
• Wall Street’s Invisible Game.
• Fees on Top of Fees (Funds of Funds).
• Breaking the 4% Rule.
• How to Accelerate your Retirement Age (from 65 to less than 35).
• How to Invest Outside 401Ks and IRAs.
• Investing like the VCs, Bankers, Buffett, and the Government (Preferred
Shares).
• How to Double Your Money and Investing Performance in a Single Bank
Transaction.
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3. Why are you here?
• You want to double your investing performance.
• You want to learn how to invest outside 401Ks and IRAs.
• You want to accelerate your retirement age from 65 to less than 35.
• You want to achieve your financial independence to start enjoying the
lifestyle you so deserve.
arbitrageportfolio.net

4. How are we going to achieve this?
• With a truly passive income portfolio.
• Passive income IS:
• Owning assets that make your money work for you.
• Passive income is NOT:
• Writing a book or owning a website. That is called “residual income.”
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5. What will this mean for you?
Travel
Family
Lifestyle
Freedom
Source: MorgueFile
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6. Why should you listen to me?
• About me:
• Author.
• Investor.
• Engineer.

7. Why should you listen to me?
Performance
“People should not talk about investing if they are not
willing to show their actual holdings and performance.”
Holdings
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8. Who is this course NOT for?
• Speculators.
• People with extreme amounts of bad debt.
• People looking for a get-rich-quick scheme.
• Non-Action Takers (lizard brains, wantrepreneurs).
• People with over half-a-million dollars of net worth.
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9. Who is this course FOR?
• Avid income investors.
• Smart and educated people.
• Action Takers (Entrepreneurs).
• People looking to lower their retirement age.
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10. The art vs. the science of investing
• In reality psychology, MINDSET is more important than the investing math.
Source: Aron Eden
Source: Pat Zaby
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11. The art vs. the science of investing
Source: J.P. Morgan Asset Management
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12. What does this mean for you?
Source: Behavior Gap
Source: Davis Advisors
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13. What do you believe?
“Buy low, sell high” (average cost down).
“The only free lunch” (diversification).
Source: MOAA
Source: Rebalance IRA
Source: Behavior Gap
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14. WRONG
THAT IS NOT HOW THE PROFESSIONALS OPERATE
Source: UBS Wealth Management Americas
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15. What do they really believe?
Source: Bloomberg News
Source: Reuters News
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16. What is really happening?
Source: J.P. Morgan Asset Management
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17. What is really happening?
Source: J.P. Morgan Asset Management
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18. What is really happening?
Source: J.P. Morgan Asset Management
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19. What is really happening?
Source: UBS Wealth Management Americas
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20. But do they beat the S&P 500?
Source: J.P. Morgan Asset Management
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21. No! They do not beat the market
Source: J.P. Morgan Asset Management
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22. What they want are your fees
Source: Rebalance IRA
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23. What they want are your fees
Source: Personal Capital
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24. What are you paying for?
Source: J.P. Morgan Asset Management
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25. Not all funds are created equal
Who Routinely Trounces the Stock Market? Try 2 Out of 2,862 Funds (0.07%).
Source: The New York Times
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26. Beating the market is an insider’s game
Source: Amazon
Who do you work for, this guy (the client) or Salomon Brothers?
You work for me; I pay your bonus.
Commissions (commish) determine what you are told, what you
will know, and how much you can find out.
Future stock prices are difficult, if not impossible, to predict . . .
there is lots of time to ride out the peaks and valleys of
investment cycles when you have a lifetime of earnings from
employment ahead of you.
Every time you decide to get out of the market or get in, the
investors you buy from or sell to are professionals. Of course,
the pros are not always right, but how confident are you that
you will be right more often than they will be?
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27. But there is a new flavor on the street
• Funds of funds
• Age target funds
• Automated investment service (robot trading)
FEES ON TOP OF FEES
Source: Associated Newspapers
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28. How much are you paying?
Source: The Wall Street Journal
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29. How much are you paying?
Source: Betterment
Time Typical DIY-WSJ Wealthfront Betterment
0.71% 0.02% 0.01%
+ index cost 0.02% 0.02%
Monthly $ 59.17 $ 22.92 $ 17.17
Yearly $ 710.00 $ 275.00 $ 206.00
30 Years * 6.39% $ 60,138.38 $ 23,293.03 $ 17,448.60
Source: Wealthfront
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30. Do they beat the market?
Source: Betterment
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31. Do they beat the market?
Source: Wealthfront
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32. What have we learned so far?
• To come back from a 50% loss you have to make a 100% gain.
• You are your own worst enemy (behavior/mindset).
• What the pros really think about diversification and average cost down.
• Only 0.07% of funds beat the market.
• Advisors are only out for themselves.
• Bankers are only after your fees.
• Stock prices are impossible to predict.
• Trying to time the market is a fool's errand.
Average Annualized Performance
S&P500 7.40%-9.2%
Funds 7.20%
Funds of Funds *6.39% 4.57%-7.00%-7.60%
Retail Investor 2.50%
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33. Is this OK with you?
Are you going to keep waiting until 65? Are you going to start now?
Source: MorgueFile
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34. What is the problem with the rat race?
Source: Ramit Sethi
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35. Will it work? The 4% Rule
Source: J.P. Morgan Asset Management
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36. Will it work? The 4% Rule
Source: J.P. Morgan Asset Management
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37. Will it work? The 4% Rule
Source: J.P. Morgan Asset Management
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38. Will it work? The 4% Rule
Source: J.P. Morgan Asset Management
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39. The flaws of the 4% rule
Source: Vanguard
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40. The flaws of the 4% rule
4% 8%
Source: Hershey Source: Freepik
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41. How do we get that 8%?
Source: J.P. Morgan Asset Management
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42. Preferred shares
Source: CNBC
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43. What are preferred shares?
Source: The Wall Street Journal
Source: Source: Mortgage News Daily Ironwood Capital
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44. The 8% yield
Source: The Wall Street Journal
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45. Why preferred?
JPM-PRB C-PRP WFC-PRT
Source: SEC
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46. Why preferred? The start-up fever
Source: Wilson Sonsini Goodrich & Rosati
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47. What is the risk?
Source: SEC BML-PRI WFC-PRJ
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48. What is the risk?
Source: Financial Services Technology
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49. Investing like Buffett
Source: Google Finance / Reuters
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50. At 35 or 65?
Source: Fun Eye Test
65? 35?
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51. At 35 or 65?
65? 35?
Source: Wedding by Color
Source: Tesla
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52. Introducing the Arbitrageur Investing System:
An Advanced and Proven Step-by-Step
System for Income Investing: Capable of
Doubling Your Money in a Single Bank
Transaction–Finally Making Your
Money Work for You!
arbitrageportfolio.net

53. How does it work?
arbitrageportfolio.net

54. How does it work?
CD
Loan
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55. The net interest margin trade
Source: FRED
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56. Lowering your retirement age
Source: Vanguard
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57. Lowering your retirement with performance
Average Annualized Performance
Preferred Shares ~8.00%
S&P500 7.40%-9.40%
Funds 7.20%
Funds of Funds *6.39% 4.57%-7.00%-7.60%
Retail Investor 2.50%
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58. The cash flow algorithm
Mgmt. Cost: $17,448.60
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59. The Step-by-Step System
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60. Module 1: The Capital
• Foreword about how the system came to be.
• The seven ways of raising investment capital.
• Risk descriptions and investing classifications.
• The difference between building wealth and being rich.
• Reading guidelines and explanations for better understanding.
arbitrageportfolio.net

61. Module 2: The Corporation
• How to create your own corporation.
• Which corporate structure to select.
• The importance of protecting the corporate veil.
• The tax efficient way of investing via a separate legal entity.
• The difference between a Limited Liability Company and the C & S-type
corporations.
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62. Module 3: Commercial Arbitrage
• How to structure a commercial loan.
• How to create a commercial certificate of deposit (CD).
• How to double your money in a single bank transaction.
• What commercial arbitrage (net interest margin investing) really is.
• Wall Street's biggest secret: the difference between computing and
amortizing interest rates.
• Step-by-step description of how to execute the same trades Warren Buffett
pulled on Bank of America and Goldman Sachs.
• How banks actually make money and how you can do it as well, including
interactive and highly customizable spreadsheets together with an investing
profit calculator.
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63. Module 4: Income Portfolio
• The Rule of 72.
• How to make your money work for you.
• The rules of trading: when to buy and when to sell.
• A highly customizable dividend coverage calculator.
• Social lending best practices, also called peer-to-peer lending (P2P).
• A list of my ten personal favorite investing instruments and resources.
• The correct asset allocation (ETFs, CEFs, Single Equities, and Bonds).
• How to trade like a professional by using the "golden rules" of trading on margin.
• The Arbitrageur's proprietary equation that tests equity statistics to predict their future
performance.
• The importance of investing for income (interests, dividends, royalties, and
distributions) without speculation.
• What Jesse Lauriston, "famous stock operator," thought about the Dow, S&P500,
diversification, and dollar cost averaging.
• What it really means to be diversified, "internal vs. external diversification," showing
you the right allocation guidelines.
• Arbitrage investing fundamentals and technical analysis; explanation of the technical
aspects of moving averages and market volumes, plus the fundamental importance
of free cash flow and net asset value.
arbitrageportfolio.net

64. No need to be an Einstein
Source: John Kapeleris
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65. What are your options?
• You can figure it out yourself and try to fill in the gaps.
• You can keep paying fees on top of fees inside the rat race.
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66. START CALLING YOUR OWN SHOTS!
Source: NY Post http://www.arbitrageportfolio.net/
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67. Thank You!
http://www.arbitrageportfolio.net/
arbitrageportfolio.net