In yesterday post, I stated that  using the approach I describe below earns Rosi and me the income we live on as risk-free as possible. In over 50 years of investing, I have found this to yield the best results.

We do this daily, Monday through Friday, and live on that income. Doing so on a daily basis became possible only recently. On October 11, less than 10 minutes, I carried out the necessary steps in a hospital reception room.

The only way to do better than that is to do something illegal.

Here are the steps.

Using the approach I describe below earns Rosi and me the income we live on. In over 50 years of investing, I have found this to yield the best results.

How risky is it?

The connected risk is tied to the failure of the most robust economy in over 100 years – the American economy. Now, how risky is that? Confucius said: “Study the past if you would define the future.”

The example below shows how we do it.

We primarily post investment issues and only occasionally depart.

This is such a post.

I recently met a pharmacologist (not a pharmacist) who told me that he takes aspirin daily. The benefits are significant. If you are over 50, consider it whether you’re a man or a woman.

It’s crucial to consult your pharmacist before starting a daily aspirin regimen. They will assess whether it’s safe given your current medications and health conditions and determine the appropriate dosage for you.

Be well and stay well.

Milan

It is better to have as much cash as possible to allow buying as many shares of SPY as possible to enable selling puts and calls but leaving enough money aside to buy groceries, pay the rent, budget for holidays, for anything else you might want to buy and for emergencies.

While this approach may contradict the 50/50 asset allocation concept, it can generate a higher income.

How good is this approach?

Most investors in the stock market lose.

In his book, The Big Short, Michael Lewis states: “The willingness of a Wall Street investment bank to pay me hundreds of thousands of dollars to dispense investment advice to grown-ups remains a mystery to me to this day. I was twenty-four years old, with no experience of, or interest in guessing which stocks and bonds would rise and which would fall. Believe me when I tell you that I hadn’t the first clue. I’d never taken an accounting course, never run a business, never even had savings of my own to manage.”

J. P. Morgan Chase CEO Jaime Diamon had an income of $36 million in 2023!

A general surgeon has an annual income of $400 thousand. A general surgeon needs 90 years to earn what Dimon earns in one. (36 million divided by 400 thousand)

And who pays the Wall Street incomes? Look in the mirror.

To minimize these expenses,

On October 1, we published an article titled Making 16% annually using derivatives. Yesterday, one of our members asked how we select the strike price and premium. We are grateful for this important question.

A strike price just out of the money produces the best returns. So, if SPY trades at $569.28, that is at the money, and just out of the money is $570.

And how do we select the premium?

Making 16% annually using derivatives

The link below leads to a relevant Forbes article by William Baldwin, updated on Dec 14, 2020.

In yesterday’s post, we wrote about the importance of saving in order to continue our lifestyle into retirement.

SAVING THE RIGHT AMOUNT

The earlier in life we begin regular saving, the smaller the percentage of our income needed in our retirement fund in order to continue our working years’ lifestyle into retirement.

The ultimate size of that fund is a product of three variables:

1. the percentage of our income which we save
2. the return on investment we get on our savings
3. the length of the saving period

Here is a test.

Is any one of these three more important than the other two?

If so, which one?

Let us assume an annual income of 70,000 dollars, 10% of which we save into our retirement fund and are able to invest at 6% annually.

In the following table, we increase each variable separately, by a third.

You and your spouse might not be in the same age group as the couple above but let us hope ou get there.

77% of adults want to age in their homes. There is a number of issues connected with that, such as climbing stairs, narrow doors, which might not be able to manage a wheelchair, and more. We talk about childproofing a home. We also need to look at ageproofing our house. 25% of older adults fall in their homes every year.

Here, we delve into the financial aspects of aging. It’s crucial to have the necessary resources and manage them effectively. For instance, round-the-clock home care can cost between $ 25,000 and $30,000 a month. That is a significant financial commitment that requires careful planning.

The average age in North America is almost 40 years.  In some African countries, the average age is 17! What should North Americans do?

Greetings, everyone,

You will enjoy the presentation which follows. 

Modern Investment For September 18, 2024

The presentation is about 30 minutes long, and you could learn something valuable from watching it.

Contact me if you have questions.

I send my best personal regards,

Milan 😃