Category: Investments
Using Leverage with Options Trading: Wise, Prize, or Snake Eyes?
You don’t need to use leverage (also known as margin) to trade options, but what would be the point of trading options? Leverage is a double-edged sword: mighty in good times, disastrous in bad times. So, how do you decide when to use leverage and how much to use? The key to using leverage is…
My Three Favorite High-Yield Savings Accounts: Get Paid While You Save
Most Americans realize the importance of saving money—whether they choose to save is a different story. Saving is a mechanism we put into place to protect ourselves from emergencies while also preventing us from using our investment accounts. I always tried to save early in my adult life—to no avail. However, in 2019, I started…
Trading Long Strangles vs. Mortgage REITs: The Most Hardcore of Income
The goal of life is to make money while you sleep; there is simply no other way to get ahead of life expenses. But how do you make passive income? Some people turn to the stock market to earn dividends while they sleep; others use the options market to create large amounts of passive income.…
Life as an Income Investor 2: How to Become a Cool Kid
I always wanted to be a cool kid, but sadly, this wasn’t the case. I never thought I would have the chance to be the coolest kid on the block—but then I became an income investor. Becoming an income investor isn’t about bragging to others about how much money you make. Instead, you get a…
The Options Wheel vs. Business Development Companies: The Most Hardcore of Income
The most essential part of your financial plan is cash flow; without it, your plan will fail. Cash flow allows us to make decisions based on the amount of money “moving” through our hands, not “sitting” in a bank. But how do we increase our cash flow? We can get a promotion at work or…
Dividend Growth Investing vs. Income Investing 2: Current and Retirement Income
Many people consider passive index fund investing the gold standard of stock market investing. The main advantage of index funds is that you don’t have to pick individual stocks to achieve success. The main disadvantage is that you will likely have to sell shares during retirement to generate enough income to survive. This means you…
Selling Cash-Secured Puts vs. Preferred Shares: The Most Hardcore of Income
You’ll have to take risks to become wealthy, but how much risk is enough? The answer depends on many factors, the chief of which is your emotion toward money. I absolutely adore preferred shares; however, I must take a gamble to get the best deals. Selling cash-secured puts is relatively safe, but there is a…
The Dividend Savings Account: M1 Finance Gives Us A New Way to Save and Invest
For years, I stuffed my money in a standard savings account at Wells Fargo, which has a measly 0.01% interest rate. They should be ashamed of themselves. In 2019, I learned about high-yield savings accounts and immediately opened an account at Discover. My favorite high-yield savings account pays 4.10%, an enormous increase from Wells Fargo.…
Selling Covered Calls vs. Closed-End Funds: The Most Hardcore of Income
What’s the difference between being rich and being wealthy? Rich people have assets that don’t necessarily produce income, for example, a house with $1 million in equity. Wealthy people accumulate assets that produce income, for example, a home that rents for $4,000 per month. It takes much more financial sophistication to be wealthy. I am…
Overcoming Your Limiting Beliefs #2: Options Trading
There is nothing quite as feared as options trading. Whenever people think of options traders, they think of stressed-out bankers on the brink of disaster. However, options trading is really quite logical. There are only two directions that the stock market can move: up and down. From there, you set up your desired options strategies…
Stocks, Bonds, & Options in Your 70s: Taking Care of Everyone Else
Let me be 100% honest; we should have money pouring out of our eyeballs in our 70s. By leveraging the power of compounding early in life, we ensure our 70s are plentiful. For example, let’s say my $340,000 portfolio compounded at 10% annually while I added $1,000 per month. In 27 years (I’m 43), I…
Overcoming Your Limiting Beliefs #1: Dividend Investing
Fear can motivate you to do extraordinary things. For me, the fear of being broke motivated me to invest in the stock market. Many times, our fears come from limiting beliefs—thoughts that form through a series of experiences, concepts, and feelings. For example, if everyone around you is poor, you may form a limiting belief…
Trading Long Strangles vs. Dividends: The Best Passive Strategy
Let’s talk about passive income. I love receiving $2,100 per month in dividends; it’s my favorite part of each month. However, I have $250,000+ invested in the markets. Passive income takes a lot of capital to generate a decent income stream. Options trading can help you close the gap in your income, but it comes…
Stocks, Bonds, & Options in Your 60s: Ensuring a Great Retirement
Our 60s should be a time of joy and celebration. In fact, the only stress we should have is from babysitting our grandkids. But these magical times don’t just happen; we must create them. We must build a level of financial sophistication that ensures we can weather any economic storm. This foundation starts by understanding…
Selling Covered Calls vs. Trading Long Strangles 2: Combine Them For More Passive Income
Options trading isn’t for everyone, but that doesn’t mean most people should overlook this incredible opportunity to make passive income. Americans put far too much emphasis on their W-2 jobs while passing over other opportunities to make money. Many times, we exclude other opportunities because of fear of the unknown or the possibility of risk.…
Dividends & Options Trading: A Beginner’s Guide to Passive Income
Why does everyone seem to be obsessed with the stock market? What is all this talk about treasury yields, dividends, and stock prices? The truth is that many people turn to the stock market to generate passive income for today and tomorrow. If you are not in the markets, you and your family could have…
Selling Covered Calls vs. Trading Long Strangles: What Are Your Passive Income Goals?
Why do people decide to trade options? It can be a very dangerous and risky proposition for most traders, so why all of the love? Options trading can be a lucrative wealth generator if you take the time to learn the ropes and create a system that works for you. “The Options Playbook” discusses over…
Build Your Own Target Date Fund: We Can Do Better
Target date funds are all the rage nowadays, especially inside company-sponsored 401k (k) programs. However, I don’t trust them and don’t like them for a few reasons. Let’s review our retirement goals before I get into the target date funds. We want to preserve capital, facilitate growth, and generate income during retirement. That’s why many…
Can You Retire on Dividends? The True Crown Jewel of Your Career
I spent 20 years in the workforce, not knowing what to do with my money. I thought that my 401 (k) was my emergency fund, and I believed that putting money in a standard savings account was enough. I was wrong on all accounts, and my family suffered because of my ignorance. Our household dealt…
King of the Long Strangles: Inside My Favorite Options Trading Strategy
I never imagined becoming a part-time options trader; however, things changed after reading “Rich Dad Poor Dad.” When I turned 18, I became a government employee, signing up for the United States Marine Corps (Ooh Rah!). I did what the government asked of me inside the Corps, paying little attention to my finances. I had…
