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How Impact Capital Funds Fit in Your Portfolio

Are you retired, or getting close?

The average retirement in the U.S. is 18-years long, and starts at age 62. For a couple both age 62, there is a 64% chance of one living to age 85, and a 34% chance of one living until age 90 ! (U.S. Census Bureau, Society of Actuaries).

The widely-cited “4 % Rule” for retirees has been a tried and true Rule of Thumb for decades. Simply stated, a retired investor (or couple) who withdraws 4% per year from their balanced investment portfolio has a minimal risk of running out of money during their decades-long retirement.

Impact Capital Funds are specifically designed to produce a 4% annual distribution and to perform with a low correlation compared to the volatile stock market. This makes the fund a good tool for diversifying your assets while aiming to fulfill the 4% Rule.

Your Impact Capital Fund investment has a medium term holding period of 7-years. The average American retiree will have 2 to 3 seven-year periods during their Golden years. This can make a 7-year investment a good fit for many investors.

Impact Capital Funds does not profit from the interest charged on loans. In fact, we pay out more to our investors than we charge on our portfolio of loans. We effectively pass through all loan interest to our fund investors. Instead, we are organized fundamentally as an investment management company that profits primarily from the 1.25% fee we charge on total assets under management (AUM). Therefore, our incentive is to rapidly grow our AUM by offering a compelling low-interest rate on our refinance loans, and by promoting our unique mission to reduce student loan rates while generating potential college scholarships through investment performance.

The Fund is structured to have most of its expected single-digit return from interest on loans, dividends, and option income. However, the opportunity for further upside is due to potential appreciation by the covered call equity strategy that comprises 25%-45% of the Fund. Using the actual historical returns of the EDIP covered call strategy, the hypothetical total return of the Fund is over 7.5% annualized, net of all fees.

Past performance is not a guarantee of future results.


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