Ian King recently released a presentation concerning something he is calling The 20 Minute Retirement Solution.
He promises to help put you on the path to your dream retirement by only dedicating 20 minutes once per year using his “set it and forget” approach to retirement planning.
In this piece, we go over his retirement planning approach examining its merits to enable you to understand how it is meant to work.
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What is The 20 Minute Retirement Solution (The Pitch)
The 20 Minute Retirement Solution is a presentation by Ian King that he uses to talk new members into joining his premium investment research service, Automatic Fortunes. He does it by promising to help people reach their retirement goals.
But before he gets to that, he starts his pitch by lambasting what he considers “the worst retirement advice – ever.” This is the conventional retirement planning advice that he says does nothing to protect your money and offers very little returns.
King points out that many Americans missed out on the bull market that ran from 2009 and 2020 before the market crash. He says that while the market was roaring, the average investor earned a return of 1.9%, which was mediocre. He attributes this to two things:
The first is investing in Mutual Funds. He points out that they consistently underperform and quotes research done by the S&P Dow Jones:
“Every year, the S&P Dow Jones Indices release what they call the ‘Scorecard’ — research that compares the performance of all actively managed mutual funds.
According to the most recent Scorecard…
Eighty-five percent of mutual funds do worse than the overall market.”
He calls out professional money managers who run these funds saying that it is outrageous that they even get paid for their work.
The second reason is what he considers as “the worst retirement investment”: Investing in a passive index fund.
He calls out Jack Bogle and Warren Buffet who’s been quoted saying that passive index funds are a great way to invest. Why is King against the idea of passive investing? To quote him:
“Because the idea of hitching your retirement to a massive index fund like the S&P 500 … may be the worst investment idea ever.
It leaves you vulnerable to massive downturns…
While offering relatively little in the way of gains.”
He goes on to say:
“The problem is…
When things turned bad — these “passive” investors quickly become “active” — stampeding to the exits … selling out en masse…
In fact, in the first four months of 2020…
Investors pulled $22 billion from this index fund…
An incredibly active outflow of money from a supposedly passive S&P 500 Index fund.
And as all these passive investors panicked and began redeeming shares…
The only way for the funds to cover these redemptions is to sell out their shares…
Which helped make the downturn deeper and uglier.”
He then points out his main concern with them, saying:
“But the worst thing about investing in the S&P…
Is that it’s forcing index investors to leave a TON of money on the table.
Because many of the biggest stocks this year were NOT in the S&P 500.”
His explanation for this is that the criteria for a stock to be added to the S&P locks out some of the best-performing stocks. In 2020, he gives examples of companies like Moderna, Zoom, and Tesla (although it was added in December) that passive investors of the S&P index missed out on.
To further illustrate his point, he quotes research by Wharton finance professor Dr. Jeremy Siegel that was published in 2017 that concluded that 82% of the stocks that are removed from the index go on to outperform the stocks that take their places.
What solution does Ian King propose?
Since passive index funds and mutual funds are out of the question, how does King want his followers to prepare for their retirement?
His solution is for you to create a personal “retirement index.” But he says that you don’t have to create one and may even use his. This is where his 20 Minute Retirement Solution comes in:
“Ignore all the advice … the mutual funds … the index funds…
And create your own, personal ‘retirement index.’
Which is exactly what my 20-Minute Retirement Solution could do for you.
You don’t need to invest in 500 stocks … or even 100…
That might work if you have 30 years until retirement…
But if you’re close enough to retirement to be worried about getting there…
Then you only need five stocks in your personal retirement index to help reach your goals.”
He says that he has created a portfolio of five stocks that form his “retirement index.” He chose to go with five picks because he was drawing inspiration from the most successful investors in the market. He says that successful investors always concentrate their money on a “small handful of stocks,” which do better than the rest of the stocks in their portfolios.
If you want to learn more about his five picks, you should read his report titled The 20 Minute Retirement Solution — 5 Stocks for a Wealthy Retirement. To get your hands on it, you have to sign up for his newsletter (more on this later).
How he picks his five stocks
To identify the companies he adds to his portfolio, King looks for the ones that satisfy his “five profit factors” namely:
- World-changing trends. He looks for, and I quote, “stocks with tipping-point innovations… world-changing technologies that will have an impact across all industries.” He gives the example of the electric car maker, Tesla.
- Price acceleration. He ensures that a stock is going up before he gets in because when a stock fails to move, people will not be excited by it.
- He acknowledges that this is the most challenging thing to pull off. However, he says that it is at the core of his strategy – when a stock is doing well, he waits for it to have a pullback (a temporary dip in price) that enables him to jump in before momentum shifts back up.
- Market cap. He focuses on mid- to large-cap stocks that are likely to grow at an exponential rate but that are likely to attract institutional investors. They typically have a market cap of $2 to $10 billion for mid-caps and over $10 billion for large caps.
- The X-factor. He looks for companies with something that is being overlooked by Main Street and Wall Street investors that is likely to trigger substantial growth.
Who is Ian King?
Ian King got into the world of finance at the age of 19 and back then he was working for Merrill Lynch. He then rose through the ranks and by the age of 25, he was managing a group of 20 traders.
He went on to work as the head trader of a hedge fund called Peahi Capital, where he witnessed the Global Financial Crisis of 2008. Ian says that as other hedge funds dropped over 50% and other investors were in panic mode, his hedge fund recorded an annualized return of 261%.
He developed the first cryptocurrency media product of its kind for Investopedia Academy.
He left Wall Street at the age of 35 and started investing personally before he got into newsletter editing. He works for Banyan Hill Publishing where he edits Next Wave Crypto Fortunes and Automatic Fortunes.
His insights have been featured on Seeking Alpha, Zero Hedge, Investopedia, and Fox Business News.
What is Automatic Fortunes (The Newsletter)
Automatic Fortunes is Ian King’s premium research newsletter that gives his followers access to his research as well as the investment opportunities he uncovers each month.
In the presentation, he says this about the kind of opportunities he shares:
“I use the same market insights and stock-picking acumen that made my former hedge fund so successful…
To deliver market-beating results for everyday investors.”
If you want to gain access to his 20-Minute Retirement Solution, you have to sign up for the newsletter. But in addition to that, here is what you get when you join:
- The monthly Automatic Fortunes newsletter. It contains a detailed, fast-reading market analysis by Ian delivered to your inbox. He provides you with a write-up of every recommendation, and each monthly issue comes with one.
- Access to the model portfolio. With access to the portfolio, you can track every recommendation. The portfolio also has every stock on Ian’s buy list.
- Weekly alerts and updates. Ian keeps you in the loop of everything important happening in the market; moves that can impact your positions.
- 24/7 access to the private encrypted website. Through it, you will have access to all the portfolio updates, special reports, and alerts from Ian.
If you join the newsletter through the sign-up sheet after the presentation, you will receive a couple of special reports with interesting opportunities for free. They are:
- 5 Toxic Stocks to Dump Now
- Buy This Millennial App Now
- The Driverless Car Race Is Here: Grab Over 100% Gains Now
- How to Make a Fintech Fortune
- The Company Leading the Big Data Money Boom
- The Company Leading the $12 Trillion 5G Revolution.
He previously promoted it in his presentation about The Big Rip.
How much does it cost to sign up for Automatic Fortunes?
The annual subscription fee is $47
Does Automatic Fortunes have a refund policy?
Yes. You can cancel your membership for a full refund any time within 12 months, which is the duration of your subscription.
Closing Remarks on The 20 Minute Retirement Solution
When Ian King released “The 20 Minute Retirement Solution,” he wanted to convince us to sign up for his newsletter, Automatic Fortunes.
In the process of promoting the newsletter, he shares his insights into how he thinks you should approach retirement planning. He goes against the grain by discouraging investors from investing in mutual funds and passive index funds, which are widely considered relatively safe and more likely to earn returns. He faults them for underperforming during the good times and doing badly during a market crash.
He proposes that the best approach is to wrangle up five high-performing stocks and investing in them. That’s where he comes in with his 20-minute retirement solution – he has already put together five stocks that he expects to do well. And here’s the catch: If you want to know which stocks he has in his retirement plan, you have to sign up for his newsletter.
Before you go…
Want to see my no.1 recommendation for making money online?
This made us 6-figures in the last 3 months: