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This week on Money and Investing, Mitch Olarenshaw and I break down the strategy behind Cash Flow on Demand — a proven system for generating consistent income from the sharemarket with lower risk.
1. The cash flow on demand strategy
This income strategy has been our flagship approach at Australian Investment Education for nearly 25 years. It’s built around three key elements: selecting the right asset, generating income, and managing risk. The aim is to deliver regular cash flow, similar to rental income, but using shares and exchange-traded funds (ETFs).
2. Asset selection with structure
The first step is buying assets such as shares or ETFs in standardised lots of 100. Asset selection is guided by three types of analysis:
- Technical analysis helps identify entry points based on price movements.
- Fundamental analysis explains why markets are moving using real-world events.
- Quantitative tools match each asset to the investor’s risk profile, using proprietary measures of volatility.
3. Creating income without dividends
Rather than waiting for dividends twice a year, income is generated more frequently by selling options over the assets held. This can be done weekly, fortnightly or monthly. When used properly, this strategy is considered lower risk than holding shares outright — a view supported by the ASX.
4. Risk management is non-negotiable
Protecting your capital is key. Tools like stop losses, diversification, staged market entry, and protective options are used to manage downside risk. It’s not just about making money — it’s about keeping it.
For example, a $50,000 portfolio might be split across five different shares or a mix of shares and ETFs like QQQ for US exposure or CBA and BHP for domestic holdings. The strategy stays the same — asset, income, and risk — but the implementation adjusts based on your goals and risk appetite.
5. Client results that speak for themselves
Jason in Melbourne generated around $200,000 profit in a year, delivering over 25%. Tony on the Gold Coast achieved a roughly 28% return trading U.S. markets. These are real numbers from everyday people using the same strategy discussed in this episode.
6. Education comes first
This strategy isn’t about taking wild punts. It’s about understanding how to use the market to your advantage. We offer free training to help you get started and understand the details. If you want to run the strategy yourself, get help doing it, or have it done for you — there’s a way to get involved.
For more Info about Money and Investing you can go to the podcast; The Wealth Playbook: Your Ultimate Guide to Financial Security; and, The Wealth Playbook by Andrew Baxter – Audiobook which is on Audible.
Disclaimer: Wealth Magnet Pty Ltd (ABN 52 618 868 830) trading as Australian Investment Education is a Corporate Authorised Representative (CAR no. 1255231) of Grange Financial Services Pty Ltd (AFSL No. 488609).
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
