I'm half way there almost 500k in assets at 29. Any ways I can do it faster? I was thinking of doing side jobs or working another job after work.
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1 Million by 35?
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I'd put it in large cap stocks and write 6 month covered calls for just a little out of the money. This will practically guarantee you a 7% to 15% return including dividends. No, you won't get a 17% return like we all did last year, but you most likely will not see much of a loss either, depending on the value of the large caps you choose. I am starting to do this myself with some of our portfolio. It feels safer than just buying and holding an index fund.
And bonds....bonds scare me MUCH more than holding a value company like Microsoft, Coke, Merck...
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Originally posted by KTP View PostI'd put it in large cap stocks and write 6 month covered calls for just a little out of the money. This will practically guarantee you a 7% to 15% return including dividends.
Then you'd still lose 25-35%.
There is no such thing as a 'practical guarantee' in the market.
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Originally posted by jpg7n16 View PostUnless of course the market falls 30-40% again.
Then you'd still lose 25-35%.
There is no such thing as a 'practical guarantee' in the market.
What if you put it in bonds and interest rates spike to 1980s levels and your bonds lose 30% principal value?
The only sort of safe place to put it is in 5 year CDs, where you *just* might break even against inflation.
The suggestion of large caps and covered calls is pretty conservative, while still taking advantage of a bit of positive potential. In the last few downturns, the large caps have mostly all sprung back, staying at the 25% to 35% loss range for less than a couple of months at most. Especially true of value large caps paying dividend (with exceptions like C, GM, etc., but the case could be made that they were not really value stocks to begin with).
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Originally posted by KTP View PostOk, I will play that game too!
What if you put it in bonds and interest rates spike to 1980s levels and your bonds lose 30% principal value?
And I would begin investing in bonds at that time.
Like you, I feel that stocks are the best investment out there. But I don't claim that a simple options strategy will 'practically guarantee' you double digit returns. Especially not one that limits your upside and not your downside.
Originally posted by KTP View PostI'd put it in large cap stocks and write 6 month covered calls for just a little out of the money. This will practically guarantee you a 7% to 15% return including dividends.
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Originally posted by jpg7n16 View PostThen it's a good thing I never claimed that bonds were 'practically guaranteed' to return anything.
And I would begin investing in bonds at that time.
Like you, I feel that stocks are the best investment out there. But I don't claim that a simple options strategy will 'practically guarantee' you double digit returns. Especially not one that limits your upside and not your downside.
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Break down of assets:
30's Somethings Finance: 1st Post!
You guys are funny, i dont do anything illegal to gain my money..
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