cover-image

Education

Arta Presents: Level Up!

Education

August 04, 2023

Arta gets you access to financial opportunities that help you to plan and enjoy your financial future like the ultra-wealthy do – but with less complexity and lower fees.

We call this your digital family office.

Let’s take a look at 3 family office services Arta eanbles, in order to help you level up your financial strategies.

  • Line of Credit

  • Options

  • Insurance

Line of Credit

Let’s start with a trick super-wealthy folks use: a Line of Credit.

When ultra-rich folks need cash fast — like to buy a house or make a large tax payment — what they don’t do is sell their assets.

They borrow it from their Line of Credit!

So their assets can continue to grow!

Arta can help you with a Line of Credit, secured by the public stocks and bonds in your portfolio.

Because this type of collateral is so liquid, you get very low interest rates on the money you borrow!

Arta enables you to pay it back as fast or as slow as you like! Plus, Arta charges no fees!

If you decide that it's right for you, you can open your line of credit for free so you have it handy in case you want it. You won't pay interest unless you use it.

A Line of Credit is a great example of a financial superpower Arta can grant you based off of the stock you already have. Another way to level up is by using Options.

Options

Options are agreements for the right to buy or sell stock at a certain price at a certain time.

You can sell someone the right to be first in line to buy your stock at the agreed price, if they choose. That choice — or call option — has value! Which they pay you for.

Arta uses options to level up your financial sophistication in two powerful ways. The first is called Income Stream Options.

Income Stream Options

Income Stream Options create an income stream from your stocks while you seek to sell them at a higher price.

Say you have a stock you want to sell — like if you’ve acquired a lot of stock as compensation from your company — but you want to sell it at a certain higher price.

You might want to do this because you need to diversify out of this stock. Income Stream Options will help you be systematic and disciplined about this. 

You can tell Arta that price, and it will sell an option to someone to buy it at or above that certain price in the future.

You earn a little cash from selling the option.

If the stock doesn’t rise to the agreed upon price, the person who bought the option will let it expire.

You keep your stock, but earn a little cash from selling someone the option.

If the stock goes above the agreed upon price, they will probably buy it — because they’ll be getting it below market price and will earn a little profit.

In this scenario, you sell your stock at the higher price you wanted, plus you earned cash from selling someone the option.

In both scenarios you make money!

Basically, you trade giving away a little potential upside for a guaranteed cash income stream. But this works out for you, because you were willing to sell that stock anyway.

Ultra-rich folks do a lot of this — but it’s a lot of work, so they pay professionals to do it for them. Arta’s tech can do it easily, so you get it for free!

Smart Hedging Options

Another way Arta levels you up with options is by Smart Hedging.

It gives you downside protection for free!

Pick a stock you’re ok selling, and a price you’re willing to sell it at to protect against losses that you don’t want.

For example, if one stock represents a large portion of your portfolio, you could face a lot of harm if the stock falls below a certain price.

All you need to do is choose that floor price

Arta will buy options at that price, so you’re guaranteed to never lose more than that.

Arta will then sell options at a higher price, and use that cash to pay for the lower priced floor options.

So that means if the stock rises to the higher price, those stocks will be sold – which is great, because you were okay with selling them anyway!

Smart Hedging works for you if you want to lock-in financial stability — like if you’re going through a major life change, switching jobs, buying property or having children.

It’s a pretty sophisticated strategy, in the biz we call it a “zero premium collar option strategy”. 

Ultra-rich folks pay pros to do it for them, but Arta levels you up for free!

Last, but not least, the ultra-rich even use insurance to grow their wealth.

Sam, can you enlighten us?

Insurance

Of course! While you’ve probably heard about the common types of insurance:

There is a type of insurance you probably don’t know about, but the super-wealthy love to use to generate tax-advantaged wealth.

In the biz it has all kinds of complicated names, like variable universal permanent life insurance, but at Arta we bring you all the benefits in a much simpler package that we call WealthGen Insurance.

Wealth Gen Insurance

Unlike common term life insurance, it never expires — as long as you pay the premiums — and it has a tax-advantaged investment account bolted onto it. It’s basically a ROTH IRA with life insurance – without the limits and restrictions of a ROTH IRA.

You make regular payments, called premiums, but they are divided into an insurance portion and an investment portion.

With the investment portion, you can invest in lots of assets: stocks, bonds, mutual funds and the like. For qualified investors, it can even invest in private placements like private equity or private credit. And it grows tax free!

Although early withdrawals will be taxed, you can access this money when you're alive via a tax free policy loan. Or when it becomes inheritance for your family, this is income tax free for them too.

And, because it holds assets, you can borrow money to pay the premiums - just like you use a mortgage to buy a house.

Anyway, I could go on and on, but that’s another level-up used by the super-wealthy that Arta gets you access to.

OK! That’s a quick overview of how Arta levels up your financial powers, you can learn more in the Arta app here.

See you next time!

BECOME A
MEMBER

Disclosures

See important disclosures here.


Share

Get the latest market trends and investment insights

WEALTH PLATFORM

Overview

Private Investments

Public Markets

Cash Management

Structured Investments

Family Office Services

Direct Indexing

Wealthgen Insurance

Pricing

WHO IT'S FOR

Member Stories

PARTNER

Overview

Get In Touch

contact@artafinance.com

Important Disclosure Information

Arta Finance Wealth Management LLC ("Arta") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Arta’s affiliates include Arta Finance Insurance LLC which offers insurance brokering services, Arta Finance Club which offers tax and estate planning educational services, and Arta Wealth Management Pte. Ltd. which is regulated by the Monetary Authority of Singapore (“MAS”) and provides licensed investment products and services in Singapore. Clearing and custody of all securities are provided by Pershing LLC. For additional legal and privacy related information related to Arta Finance, please visit https://artafinance.com/legal-privacy-terms. For additional disclosures related to Arta Finance, please visit https://artafinance.com/disclosures.

The information displayed on this website is for informational purposes only and is not an offer or solicitation to purchase or sell securities. Arta Finance believes information presented is accurate at the time of publishing, but may not be updated regularly. Investing involves risks, including the potential for principal loss. Past performance is no guarantee of future results.

The investments discussed herein may be unsuitable for investors depending on their specific investment objectives as well as financial and tax position. Investors should independently evaluate each investment discussed in the context of their own objectives, risk profile and circumstances before deciding to invest with Arta Finance. There is no guarantee that the strategies and services offered by Arta Finance will be successful or outperform other strategies and services. Investors should seek the advice of a tax professional before making any investment. Registration with the Securities and Exchange Commission (SEC) as a registered investment adviser does not imply a certain level of skill or training.

All opinions expressed herein constitute the author or quoted individual(s)’s judgment as of the date of this document and are subject to change without notice. Statements made are not facts, including statements regarding trends, market conditions and the experience or expertise of the author or quoted individual(s) are based on current expectations, estimates, opinions and/or beliefs. Opinions expressed by other members on Arta Insider should not be viewed as investment recommendations from Arta Finance. Testimonials and Endorsements were provided at the request of Arta Finance. Arta Finance is not affiliated with and does not purport to own or control any third-party content linked herein.

The summary provided for queries entered in this website are generated by an experimental feature of Google Gemini. While we strive for accuracy, the information may not always reflect the most current or complete details available. Please verify all critical information directly by reviewing the source materials provided in the query results.

Copyright Arta Finance 2024. All rights reserved