If the market moves up then It’s better to put your money to work sooner rather than later.
Using ProLeverage℠, you can put your future retirement contributions to work right now.
Yale professors Ian Ayres and Barry Nalebuff have published several research papers on how using leverage can benefit retirement savings.
“By employing leverage to gain more exposure to stocks when young, individuals can achieve better diversification across time. Using stock data going back to 1871, we show that buying stock on margin when young combined with more conservative investments when older stochastically dominates standard investment strategies—both traditional life-cycle investments and 100%-stock investments. The expected retirement wealth is 90% higher compared to life-cycle funds and 19% higher compared to 100% stock investments. The expected gain would allow workers to retire almost six years earlier or extend their
standard of living during retirement by 27 years.”
Ayres, I., & Nalebuff, B. (2008). LIFE-CYCLE INVESTING AND LEVERAGE: BUYING STOCK ON MARGIN CAN REDUCE RETIREMENT RISK. NBER WORKING PAPER SERIES.
The expected gain would allow workers to retire almost six years earlier or extend their standard of living during retirement by 27 years
ARM Financial uses ProLeverage to tailor leveraged strategies to each client’s particular needs. We use leverage wisely. Leverage is a powerful tool because it amplifies losses as well as gains. Our flagship strategy, INDEX+, is an investment product with a proven track record that is 90% likely to do better than the market over any 5 year period and 99% likely to do better than the market in recessions and crises. INDEX+ allocates investments automatically across the S&P500 and US Treasury Bond Futures. It balances this leveraged allocation to hedge against a crisis, which provides peace of mind during uncertain times.
Leveraging stocks and bonds can improve returns and reduce risk in uncertain times.
Past investment performance is not necessarily indicative of future investment performance. Futures are not appropriate for every investor. Futures involve the risk of substantial loss.