Investment & LifeInvestment Option and Strategies

Case Study Investment Strategies formulation LZ Products Q&A 401K, Real Estate, investment mistake, and

etc

Agenda

Tuition/Living Cost will inflated at 7% annually

Current tuition/living cost for BA $280,000 本剧故事，纯属虚构，如有雷同，实属巧合。

case

Sean have 5 years boy and smart Within 15 years, boy will go to Stanford Sean have $300,000 Budget for his kid Now Sean already is 60.

Case #1

John and his wife are having their second child. They plan to send their kids to Stanford, but not sure if they will have enough money to do it. Only thing they have is both of John and his wife have jobs, which paid them about $200,000 annually. They are young…

John’s family has cost as following: Income tax: $60,000 Daily Cost: $24,000 Kids Related:$20,000 Mortgage: $60,000 401K: $30,000 Others: $5,000

Case #2

Case #1: (Return Rate) Inflation 7% Sustainable Practical Low risk

Case #2: (NPV Cash Flow Calculation) Cash Flow/(Rr-Rg) : $1,000/(7%-5%)=$50,000 Cash Flow Return Rate >7% Annual Growth Rate >5% With 10% sustainable return: >$91,000

Case Study

Process Risk Return Cash Flow Example Summary Take Away Top 100 Hedge Fund in the market

Strategic Investment

Strategic Level Macro and/or Micro Econ Analysis Market and Scenario Analysis Business Evaluation/Operation Assessment

Tactic Level Risk and/or Return Analysis Operation Simulation (Crystal Ball/ War Game) Operation Design Financial Lab Demo/Performance Tracking Product finalization Product Promotion Business Operation

Strategies Formulation Process

Risk vs. Rich… Symptoms

Catching up inflation… Opportunity Cost…

Solutions: Investment Size Time Frame Life time event Profit Withdraw

Unavoidable even without invest in anything

Risk

Full Capacity Potential… Reasonable Return… Goal Orientated Rate… Mortgagee Rate… WSJ Prime Rate… Libor… Banking Interest Rate… Income Tax Rate…

Return

Fluctuation Wiped out Balance Duration Loss Reserve Cash I/O

Cash Flow

Writing straddle hedging via Long butterfly Following writing Call/Put Long spread

Option Strategy Example

- + -

Call -- +

Put

Holding Capacity 1/3 (FC Gain 52%) Loss Reserve 5% (5 years) Base Rate WSJ/Libor/Mortgage Income Rate 20-80 Return Expectation 500 to 1000 Over

LIBOR Total Return 1500 to 2000 BP

Strategies Formula

Sustainable Tri-directional Affordable Marketable Practical

Summary

Target Over 10% gain Sustainable Min Balance below $100,000 Min Duration within 5 years

Within one market: Mission Impossible• Solutions: Combination of Stock, Option, Future, ETF, Index,

Commodities, Forex, Real Estate, and etc. General Principle

Taking Care of Risk Clear Exit Strategies

Take Away

Top tier: 15%-123% Average: 5%-20% Balance: $100,000 Duration: 5 Years

Top 100 Hedging Fund

Products Targeted Customers

LZ Capital

0 10 20 30 40 50 60 700

20

40

60

80

100

120TOP100A CCA SCA Maic-I Flex-D Generic Accounts

Flex-D Return Expectation: 6-9% Over Libor

Guaranteed Rate: WSJ Prime Rate Plus 20% of Profit Sharing

Min Balance: No requirement Min Duration: 1 Year

Magic-I Return Expectation: 10-15% Over Libor

Base Rate: 30 years Fixed Mortgagee Rate 50% of Gain up to 5% as Loss Reserve 80% of Gain unlimited as Income

Min Balance: $25,000 Min Duration: 1 Year

Customized Accounts CSA(Customized Single Account)

Min Balance: $50,000 Min Duration: 1 Year

CCA (Customized Comprehensive Account) Mortgage (Interest Focus) 401K(Retirement Focus) Brokerage (1 Year Return Focus)

Products From LZ Capital

Following the Email From LZ Capital It is slave account You have total control of cash flow LZ Capital fully control of trading Account operating regarding to Agreement Income Tax arrangement

Customized Single Account

Looking for sustainable 10%+ gain… $150,000+ in your 401K… Accessible Home equity… Mortgage and other loans… Extra Cash… Commitment for a whole year…

How LZ Capital Fit Into Your Money

Goals vs. Plans… Strategic vs. tactic mistakes… Risk vs. Return… Exiting vs. entering Strategies… Liquidatability vs. Duration… Balance vs. Return… Optimization vs. Opportunities… NPV method… Moving evaluation approaches… Possibility mindset… Avoidability of the game…

Q & A

Macro Econ Micro Econ Tech Analysis Fundamental Analysis Derivatives 3 to 5 years trading Experiences Market Research/Business analytics Political vs. Econ

Qualification to Playing Strategies

Highly Liquidable Equity Stock Future ETF Derivative

Moderately Liquidable Equity Real Estate Commodity Stamp Wine Liquor

Low Liquidable Equity Antique

Etc.

Personal Investment Options

It is Commodity, Saving in most, Investment in some degree Natures:

Took many years to build up the value Took few years to crash Low liquidation Risk to be leveraged about 5 time

Major Function Great saving tool to against inflation

Key G/L factors Mortgage Interest Rate Tax Benefits Cash Flowing Transaction Cost Key is Exit rather than Enter

Real Estate Market

Macro/Micro Econ Job (Unemployment, Available, Job vs. Population) Housing Trading New Permit Application (Qualy and Quanti) New Housing Invent (<5 Month) Payroll (Quanti and Quali) Job Distribution Housing Trading Environment Loan Requirement (Down payment, Rate, and etc.) Other Tactical Index…

Housing Recovery Roadmap

Risk Price downside Interest Rate Fluctuation Property tax, management, maintenance, and other costs

Return Sustainable Rent Income and/or Saving Tax advantage (Limitation)

Cash Flow Leveraging mortgage Net Present Value Measurement

Real Estate Investment Key Factor

Benefits: ($5,000, $5,000-$8,500) Companies’ Match ($5,000) Tax Benefits (30%-50%) Annual Cap ($15,000)

Total Value of 401K % of Benefit % of Active Inv $50,000 20% 33% $100,000 10% 16% $150,000 7% 11%

Entering & Exiting Entering biweekly or monthly basis No Exiting Strategies

Actable Transactions Take Loan Out ($50,000) Allocate to Money market fund Adjustment of Portfolio (100% of Active Investment) Self direct IRA, IRA Loan, Trust, and etc.

Takeaway Market fluctuation before your retirement way over the benefits 10% sustainable return over all scenarios will change the game You must do something

401K

Traditional Strategies Buy and Hold Diversification

Alternative focus Pricing Pattern Short and Hold Crossing Time Crossing Markets

Individual Stocks are typical “击鼓传花GAME”

Stock and Derivatives

SP500 Since 1928

SP-500 Since 1970

DJ Since 1902

DJ Since 1992

Real Estate: $300K cash to secure $1M Investment Gain Rate 9% Amount $90K

$500,000 401K Gain Rate 11% Amount $55K

$200,000 Equity and/or Derivatives Gain Rate 15% Amount $30K

Annual income $175,000

$1 Million Powerful Cash