I recently sat down to have a chat with Greg Robinson, owner of FIRE Revolution, and investment specialist to talk about his coaching programme for people looking to generate a high income yield from their savings and pensions.
I’m a pretty typical middle-aged man who got sick of the corporate grind and decided to try and find a way of taking back control of my life. That was about a dozen years ago, after I’d spent one to many nights working away and realised that I didn’t want to live that way anymore. I realised that I needed to find a way of generating an income from my savings that would allow me to give up my IT career and spend more time at home. So, after much research and many false starts, I came across an investment strategy that was popular in the US but virtually unknown here that allowed regular investors to consistently pull money out of the stock market without having to bet on the future direction of shares. Once I’d figured out how to implement it, I achieved my aim of becoming financially free.
After a few years I started to write about my experiences and that led to a new career of running FCA regulated newsletters and investment services based around the strategy. Nowadays, I’ve taken that a step further and I now run group coaching sessions where I teach novice investors how to implement these exciting techniques so that they can also generate a decent low-risk yield from their investments.
FIRE Revolution is the name of the strategy that I teach to my clients. FIRE stands for Financial Independence Retire Early and the revolution is the strategy that can help folks achieve their financial freedom. It utilises techniques that are well known to the financial elite — and savvy private investors in the US — but are not particularly well known here in the UK. I run a 13-week group coaching programme that mixes online video content with weekly videoconference meetups to teach regular Joes all aspects of the approach so that by the end of it they are also ready to pull regular dividend-type payments from some of the biggest and safest companies in the world. We then follow that up with a further three months of ongoing support and meetups.
The investment strategy is based upon identifying big boring dividend-paying blue-chip stocks. The sort of shares that call the FTSE 100 home and have a track record of paying out regular and safe dividends. There is nothing particularly unique about targeting these stocks as the basis for an income portfolio but we add a twist by using a special technique to give us the chance to buy the shares for cheaper than they are currently trading at. And the great thing is that you get paid a premium for implementing this ‘buy low’ approach. Then once we have acquired the shares we collect any dividends due and can also implement the second unique part of the process. That involves a technique which gives us the chance to sell our shares for an agreed price within a given timeframe. And again, we get paid a premium for implementing this ‘sell high’ strategy. So, as well as any dividends we also collect income from the ‘buy low’ and ‘sell high’ strategies and any uplift in the share price.
The five step process forms the basis of the revolution which is essentially the process that I just outlined. We find suitable dividend-yielding shares, use options to allow us to buy the shares ‘on the cheap’, eventually buy the shares and collect the dividends, and then use more options to allow us to exit the position and finally sell the shares at the agreed price. The whole process can take six months or longer, but once it’s complete we simply rinse and repeat. Round and round with multiple concurrent positions to gain suitable diversification. And that’s why I call it the revolution.
Absolutely. We have clients from all walks of life going through the programme and they all come to embrace the concepts we teach. I would say that you need to have an interest in investing and a desire to learn a new skill but a long as you have reasonable numeric skills its perfectly possible for anybody to implement.
I would say it’s primarily suitable for two groups of people. Firstly, people of a certain age who have worked hard all their lives and acquired a reasonable nest egg but do not know the best way to invest it in order to generate a liveable income. They may well have invested in property in the past, bought funds recommended by a financial advisor, or even traded some shares in their own accounts. They know that they need to be ‘doing something’ with their savings but are often unsure as to what that is.
The other group are younger people who realise that they need to start investing their capital in order to have any chance of building up a large enough war chest to ever have any chance of retiring. They are lucky enough to have time on their side and income strategies work great guns for them as all that income can be fed back into their investment accounts to be reinvested. It’s amazing what the power of compounding can do if you just start saving and investing at a young enough age. However, whatever age they are, my clients tend to be smart, self-motivated folks who want to take control of their own financial futures and not rely on someone else.
The programme itself requires a commitment of about half a day week but you can be split that up however it suits you. We run the weekly meetup at a set time, but they are all recorded so if a client misses one it’s no problem to catch up at their leisure. And I’m always available for questions and general support.
And then once someone is up and running with a live account the workload is very manageable even for those people that are still working. It’s certainly not day-trading and people can manage with the equivalent of a day or two a month spread out pretty much as they see fit. That’s one of the real advantages of the approach. It fits in around your life rather than the other way around.
If anyone would like to know more, they can jump onto the website at www.fire-revolution.co.uk where they can read more about the strategy and coaching programme, check out our model portfolio, download a free report, or book a clarity call direct with myself.