Options Strategies for Reducing Risk
Options for the Long-Term Investor
Customized Portfolio Management
Kirk2

Kirk Stafford
President & CEO

Kirk Stafford is the founder and portfolio manager for Desert Rose Capital Management, Inc. He has had a passion for economics, most types of investments, business and personal finances for over 25 years.

His early grasp of business and finances allowed him to start The Stafford Corporation, a successful business that, combined with successful real estate and securities investments, allowed him to retire at age 32.

Kirk’s passion for exchange traded options began in 1997 when he encountered conservative techniques for their use. He became intrigued with their uses and began actively using them in his personal accounts and the accounts of family members. Kirk is a voracious reader and has spent thousands of hours specializing in the understanding and uses of options, currencies and futures markets.

After feeling that he was not mentally ready to retire, Kirk decided to combine his talents and knowledge in the areas of finance and investing to help serve the needs of others. He went to work for a major national investment advisory firm as a financial adviser. While there, his knowledge in the areas of insurance, risk management and estate planning was strengthened. During that time, he began developing what we refer to as an ‘Integrated Options Portfolio’ which, at its heart, consists of substituting the direct ownership of shares of stock and fixed income investments with a combination of exchange traded options and more conservative assets. This combination is designed to reduce risk, increase performance and provide greater potential growth.

The importance and significance of the ‘Integrated Options Portfolio’ compelled Kirk to allow his strategy and methods to be accessible to a greater number of people. With this purpose in mind, Desert Rose Capital Management, Inc. was founded in July, 2010 to give access to this knowledge and service to other advisers and their clients.

History

Desert Rose Capital Management (“DRCM”) was founded as a result of the development of the Integrated Options Portfolio by Kirk Stafford.

After running a successful service-based business for several years and having success in both his real estate and stock investments, Kirk retired at the age of 32. During his retirement, Kirk’s lifelong passion for investing intensified even more. Rather than fish or golf like other retirees, Kirk found himself immersed in the world of stocks, bonds, options and currencies.

After a few years of being retired, Kirk felt he needed to do something more with his life. So, he followed his passion and went to work for a big, national investment advisory firm. He never imagined recommending any of the options strategies that he personally used with the public due to the risk, complexities and/or mediocre results that known option strategies entailed.

One day, while reviewing various option pages, Kirk had an “aha” moment for using options in a way that he had never before seen nor heard.

It occurred to him that rather than purchase the underlying stocks outright—he could instead purchase recently available, long-term call options on those same stocks at a fraction of the cost. He could then put the balance into CD’s or any number of other fixed income instruments that could offset the costs of the options.

In this manner, he could greatly reduce the risks of stock ownership, earn extra interest and still participate in the entire upside of the stock or stock fund through the options. Because of his knowledge of options and investing, he instantly knew the great significance that this might have for the average investor.

Naturally, Kirk assumed that other managers must have been using this strategy already. To his surprise, he realized that few, if any, were investing in this manner.

Over the course of the next couple years, Kirk had a couple of other significant “aha” moments, including how to structure and better incorporate fixed income assets for less risk and better performance. These improvements helped form what is now known as the Integrated Options Portfolio (IOP).

The full benefits of an IOP are best realized through customization to each specific client under the direction of professionals. Kirk formed Desert Rose Capital Management, Inc. in 2010 with the purpose of bringing these benefits into the hands of trained financial professionals, who could then take the IOP into the lives of their clients.

Mission

Our mission is to improve the lives of our advisors and their clients. We will do this through education, professional guidance and by preserving and increasing their client’s capital resources through diligent money management.

We believe that true investing at its core is all about helping and serving and improving the lives of others through the goods and services that are produced, the jobs that are created, and innovation.

Charitable Contributions

At Desert Rose Capital Management, Inc., we are committed to the well being of all our clients and their futures.

We believe that true investing improves the lives of others through the efficient use of financial capital. This capital provides the resources necessary to produce quality goods at great prices. This benefits the consumer, creates the right jobs, generates tax revenues for public needs and normally rewards those that have invested with increased resources (profits), creating a “win/win” environment for everyone involved. Disciplined investing, proper budgeting and balance in other aspects of our lives typically produces an abundance that enriches our lives and the lives of those around us.

>> Some of the greatest joys that we have had in life have been helping to improve the lives of others and seeing the peace and joy that it brings to them.

We all know that one of the greatest deterrents to an individual’s retirement success is procrastination. Putting off saving for retirement due to short term needs and wants can be devastating. As the saying goes, “Tomorrow never comes”. A good budget and discipline are good cures for the ills of procrastination. What people discover is that they are able to survive just fine and actually enjoy life more, when they know that they are taking care of their retirement.

We have found that the saying, “Tomorrow never comes” is also true as it pertains to charitable giving. It is just too easy to put off giving of our time and resources until we have more time, money, etc. The fact is, you will never feel like you have plenty of time or money. Like retirement, one of the best cures for procrastination is a wise budget for giving that creates a healthy balance.

At Desert Rose Capital Management, Inc., we try to “practice what we preach” and have decided to contribute 5% of all our net revenues (after paying any solicitor or referral fees) to the charities listed below that are making a real difference in the world. We believe their causes are very much in line with our ideas on the proper use of money. Each one has a tremendous story to tell, is completely tax deductible (consult your tax advisor) and has zero or nearly zero administration costs. This puts the full value of the contribution to work for its intended purpose.

We encourage you to click on their links and see how they are making a difference in the world.

© Desert Rose Capital 2018. All rights reserved.
Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in loss. We do not provide financial planning services to individual investors. View Full Disclosure Here

Desert Rose Capital Management
800-700-0509
13965 W Chinden Blvd Ste. 208
Boise, ID 83713