Frequently Asked Questions
These are some of the questions people most frequently ask us:
1. How much does InvestWaves Cost?
- Wave 1 is a freebie. We DO ask for your email, and you agree that we can contact you from time to time. Other than that, it’s all yours for the asking. However....
- Wave 2 is an awesome value! For just $10 a month you get a more nimble, responsive wave signal. This means the potential to exit a falling market faster to avoid more losses, and earlier entry signals with the green wave to help capture more gains coming off of a bottom. In addition, we can send you text alerts so you never have to worry about missing a wave change!
2. Isn’t this relatively cheap for a service of this kind?
3. Could you not waste my time and actually answer #2?
Yes – OK, sorry, I couldn’t resist.
Advisors charge anywhere from 0.75% up to 2.5% of assets under management (AUM in industry parlance) for actually giving you investment advice.
When you read the book that comes as a perk with the annual subscription, you will see that, according to an industry veteran who cannot be named (yet), most of the advice you get for that fee is bunk. Besides, InvestWaves does NOT offer advice – we are offering an amazingly powerful tool.
As such we don’t have to pay all of the monstrous fees, etc., that are required if you are giving advice. Check around and you can find many subscription services offering investment tools. But they are WAY more expensive – and more complex.
We believe that InvestWaves provides an extraordinary value, and we did that on purpose. Good investment tools shouldn’t be out of reach of anyone because of price.
4. What’s the difference between Wave 1 and Wave 2.
You mean besides the awesome perks we are giving you for subscribing to Wave 2?
Wave 1 is based on a longer term broad based system. It is designed primarily to show you the broad market trend overall. Staying on the right side of the broad trend can help keep your account from being obliterated in a massively falling market like we saw in 2000 – 2002 and again in 2008. As you can see from the chart, avoiding those losses can translate into superior performance vs just riding out the markets. Wave 1 can go 18 to 24 months or more without changing.
Wave 2 is a quicker, more responsive system. It is designed to get you out of a declining market sooner, and back into a rising market quicker. It is also more susceptible to ‘whipsaws’, which is when you get consecutive, conflicting wave signals. You can see that in the chart here, where early on Wave 1 actually outperformed Wave 2 for a brief period due to the whipsaw. However, Wave 2 went positive much earlier in 2009, allowing us the opportunity for bigger gains and more than made up for the earlier loss.
Because it will generate more signals, we include a texting service to alert you to the changes. No need to visit the website every day to see if the Wave has changed. So, more responsive, quicker signals, great perks, all for an extremely reasonable (cheap) price.
5. How do I use InvestWaves with my investments?
InvestWaves is a tool that can keep you on the right side of the markets. It is easier to find winning stocks, mutual funds, etc. If the majority of them are rising in price. Alternately, it is very hard to find a stock or mutual fund that is rising in price when the majority of them are falling.
No matter where you have your investments, InvestWaves can help you.
6. Can you give some examples?
Here are just a few ways to use InvestWaves:
i. Say you have your IRA with an online brokerage, and are picking your own stocks. With InvestWaves, you might choose to build a watchlist, and only buy when the Wave is green, indicating a generally rising market. When the Wave changes to red, you might consider liquidating your holdings. In the chart we use to show the potential power of InvestWaves, we were 100% invested in the SP500 Index during the Green Wave, and 100% in cash during a Red Wave.
ii. What if you have an account with a broker? You have our sympathy... Even so, if they call to offer a security purchase during a red wave, take that as a sign to maybe look for another broker...
iii. If you have your investments with a mutual fund company, most offer MoneyMarket accounts that you can exchange into without fees or charges, as long as you follow their rules. (Some have restrictions on how often you can do this). You might switch between your favorite fund during a green wave, and the MoneyMarket during a red wave.
7. Can I use InvestWaves with my 401(k) or other self directed retirement account?
This is one of the BEST ways to use InvestWaves!
When the wave is green, you could choose to be in the equity/stock options provided by your plan. When the wave is red, most providers offer a ‘Stable Value’, or other type of guaranteed or ‘safer’ option that you may prefer to move into during a declining market. These are easy to spot. They often have the lowest performance numbers, but never go negative.
8. So what is the value of using InvestWaves?
Let’s use an average management fee of 1.5%, and our favorite account size of $100,000.
We will forget the fact (see the book) that you are pretty much wasting your money with ‘those guys’, and assume they are actually doing a GREAT job for you.
You will pay $1,500 a year in fees more or less because the amount you pay changes with your account value.
We don’t really need to project into the future, do we?
In this example InvestWaves saved you $1,400 in fees alone. And if it helped you sidestep a declining market, the amount you avoid in losses can be priceless.
InvestWaves Wave 2 is a powerful tool that can help you BEAT the standard advisory model, at a mere fraction of the cost.
READY TO GET STARTED?
Broad Market Signals
General Finance Content
Basic Email Notifications
Faster Market Signals
Frequent Market Commentary
Improved Email Notifications
SMS Text Notifications
Premium 1-on-1 Access
Dynamic Market Graphs
Specific Sector Signals