Cheapo Groovo

Another $206 Selling Puts and Calls

IRA Account
Regular Account

Boxing in my long stock position and making $298!

I also sold a June $26 put on UCO - oil could fall further due to the global slowdown.

The high dividend / covered call strategy in action

This Poll Shows Why People Are Poor

Deuteronomy 15:11 "For the poor will never cease to be in the land; therefore I command you, saying, 'You shall freely open your hand to your brother, to your needy and poor in your land.'

Swag_poll_7_29

First, let me say that you can make money in stocks whether they go higher or lower.  Secondly, I never understood why people are so eager to pay the payroll (social security) tax. That is 7.65% of your income and people under 40 will never see what they paid in. Finally, blowing your money or keeping it in an account that pays less than 1% means you are going backwards financially. 

Use the bond market to predict stock market direction

These days, the motto is "risk on, risk off".

So when you see 10yr and 30yr US Treasury Bonds rise in price (fall in yield), stocks will ultimaetly sell off. Flight to safety play.

Look at Portugal, Spain, and Italy bond yields. When they rise, stocks will ultimately sell off. Risk aversion play. Notice how the WSJ fails to give investors complete data!

Here are some facts for those of you who follow the mindless chatter on CNBC or any stock market blog:

Amounts outstanding on the global bond market increased by 5% in 2010 to a record $95 trillion. Government bonds accounted for 43% of the value outstanding at the end of 2010, up from 39% a year earlier.  The US was the largest market with 39% of the total followed by Japan (20%). The considerable growth means that at the end of 2010 it was much larger than the global equity market which had a market capitalization of around $55 trillion.

Covered Call Tutorial #investing #options #income

One of my best alternative income streams is selling covered calls. If you are unfamiliar with this strategy, the best tutorial I found is born to sell.

Another $56 in dividend income!

04/09/2012

Dividend

PFF

ISHARES TR S&P U S PFD STK

$56.21

Get all my high dividend stock picks by ordering my Learn To Earn Seminars!

Behind The March Non-Farm Payroll Number

"Real income declined month-over-month in the latest report, which is very much at odds with the job creation figures unless that job creation reflects extraordinarily low-paying jobs. Real disposable income growth has now dropped to just 0.3% year-over-year, which is lower than the rate that is typically observed even in recessions." It wasn't quite clear what was going on until I read a comment by David Rosenberg, who noted that much of the recent growth in payrolls has been in "55 years and over" cohort.

Since the recession "ended" in June 2009, total non-farm payrolls in the U.S. have grown by 1.84 million jobs. However, if we look at workers 55 years of age and over, we find that employment in that group has increased by 2.96 million jobs. In contrast, employment among workers under age 55 has actually contracted by 1.12 million jobs.

Combine this with the bursting of two Fed--induced bubbles - one in stocks and one in housing, and the over-55 cohort has suffered an assault on its financial security: a difficult trifecta that includes the loss of interest income, the loss of portfolio value, and the loss of home equity. All of these have combined to provoke a delay in retirement plans and a need for these individuals to re-enter the labor force.

Another $41 in dividend income!

Get all my high dividend stock picks by ordering my Learn To Earn Seminars!

03/30/2012  01:47:05

ORDINARY DIVIDEND (REM)

41.47

Bad Money Advice from Mainstream Media

1. Use you debit card not your credit card. Bad move because your credit card has a $50 fraud limit on it. Your debit card can be stolen or cloned and your account drained! There is no federal or state protections on debit cards! Just make sure you pay off that credit card each month.
2. Convert your traditional IRA into a Roth IRA. Bad move because on a $1000,000 account, you'll owe $30,000 in taxes. Where are you going to come up with the $30,000?
3. Don't cancel your credit cards with annual fees because that will hurt your credit score. The lady I saw on Clark Howard this morning paid $400 in annual fees to 6 different banks. She should just cancel those cards and hook up with a credit union or start paying cash.