Why Risk Management for Monthly Passive Income is Important

When you join Investing Accelerator, you’re learning how to think about long-term investing and monthly income strategies — not just the mechanics, but how decisions actually get made.

Most people assume the most important lessons are:

Picking the right stocks

Choosing the right time to deploy a monthly income strategy

Those matters.

But what almost everyone overlooks is the most important piece of the puzzle:

Risk management.

Every strategy — whether you learned it inside Investing Accelerator or elsewhere — needs a risk management framework that matches that strategy.

The more advanced an options strategy becomes, the more customized the tools and risk controls need to be.

That’s where most investors get into trouble.

In 2025, we reviewed and discussed 35 monthly income trades (one trade a week) as part of our educational examples.

Approximately 80% of those positions reached their intended outcome without adjustment

Roughly 20% required active risk management

When a trade doesn’t go as planned, does that mean you automatically realize a loss and move on?

No.

One of the defining features of options is flexibility.

You can redesign risk and reward by:

Extending expiration

Adjusting strike prices

Changing the underlying security

Used correctly, these tools can improve the probability of a favorable outcome — but they also introduce new risks that must be understood and managed.

That’s why risk management is not an afterthought. It’s the strategy.

For educational illustration only:

If someone had applied the same weekly, rules-based approach discussed in our materials to a dedicated, hypothetical monthly income portfolio during 2025, the modeled result would have been approximately +33% before fees, taxes, and execution differences.

Past performance does not guarantee future results.

Cheers,

Eric

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Eric Seto

Chartered Professional Accountant (CPA)

Chartered Investment Manager (CIM)

Founder of 5MinInvesting.com

In January, my goal is to help 25 people without a financial background to master investing through Investing Accelerator.

Investing Accelerator is designed for people without a financial background.

The goal is to achieve 30% return per year.

In the first phase, you will learn long term investing and targeting 30% for tax free compound growth. This will help accelerate your overall wealth.

In the second phase, you will learn monthly passive income to provide a more predictable cash flow (target 30% per year) which can cover your expenses. This will help accelerate your retirement goals.

Here's a step by step guide on how to join Investing Accelerator for free: https://www.skool.com/invest-retire-community-1699/how-to-join-investing-accelerator-for-free

If you are interested, then let's hop on a call to see if you can benefit from the strategies in Investing Accelerator and get target 30% per year.

During the call, we will map out exactly how you can achieve target 30%, what you are lacking, how you can improve.

If you have any questions about the program, you can ask during the call as well.

Schedule a call here: https://bit.ly/48mJlgR

Remember to go to the Classroom tab for additional investing resources.

Disclaimer: This communication is provided for educational and informational purposes only and does not constitute investment advice, a recommendation, or an offer to invest in any fund or strategy. No advisory relationship is formed by receipt of this content. Any references to strategies or markets are general in nature and do not reflect the performance of any client account or investment product.

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