Category: Investments
Investing for Interest 119: The Magic of Corporate Bonds
I want 30-year bonds that yield over 6%. Unfortunately, I must look beyond 30-year Treasury Bonds, which currently pay 4.5%. But where do I look? How do I find high-yield bonds that are also reliable and low-risk? It’s time to venture into the world of corporate bonds. I’m new to the world of corporate bonds,…
How to Become a Part-Time Options Trader #4: Trading Long Strangles
Do you want to become an options trader but have limited resources? In this case, I recommend trading long strangles for passive income. Trading long strangles differs from selling covered calls because you buy options contracts. It is much cheaper to purchase a call than to sell a covered call. Today, I want to walk…
Covered Calls vs. Cash-Secured Puts 2: The Best Strategy for Intermediates
Options trading can be an exciting hobby, but the stakes are high. As we mature as options traders, we must refine and improve our skill sets. I wrote “Covered Calls vs. Cash-Secured Puts” roughly a year again, so it’s time to dig a little deeper. How do you pick stocks that give great returns? How…
How to Become a Part-Time Options Trader #3: Selling Covered Calls
Now that you have prepared yourself mentally (#1) and saved a nest egg (#2), it’s time to jump into the options market. First, you must decide which technique you want to try. An excellent place to start is selling covered calls for passive income. This strategy presents little risk, but does require a lot of…
How to Become a Part-Time Options Trader #2: Building Your Nest Egg
Options trading is a capital-intensive operation, meaning you’ll need a ton of money to fund your trading. Money is perhaps the reason why most people don’t trade options. Today, I want to walk you through how to build an options trading brokerage account from scratch. During this article, I will use a nasty word that…
How to Become a Part-Time Options Trader #1: Why Trade Options?
There is a lot of money to make in the world of options trading, but you could also lose a ton of money. Sometimes, it feels like a flip of a coin. I have traded options part-time for over two years and have learned much about this profession. That’s right; some people do this for…
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…
