Best Option Trading Strategy for a Portfolio Paycheck

There’s an option trading strategy that’s practically a hidden reservoir of monthly income generation lying in your own investment portfolio’s proverbial ‘backyard.’ Becoming aware of this strategy and learning how to use it empowers you to start generating real income from your portfolio, quickly. While you may not have known about this great opportunity to put your portfolio to work, increasing …

Ten Retirement Lessons From the Smartest People I Know

I recently happened on a thought-provoking article by, Paul Merriman, in Advisor Perspectives. He called it “Ten Retirement Lessons from the Smartest People I Know”. From my unique vantage point as a financial advisor, financial radio talk show host and financial mentor to thousands, I too have the good fortune of knowing and watching a lot of really smart people. …

Is running out of retirement money a fate worse than death?

Imagine this – the year is 2040. You are 80 years old, in reasonably good health, and you have just spent your last penny of retirement savings. You have no other sources of income. For the rest of your life, you will rely on government handouts and the charity of others. Sit with that image for a moment and then …

What to do with your 401(k) or 403(b) if you leave your job

A while back, I had the radio on in the car, listening to an investment show on the radio: “Hi. My name is Ron. I am a first time caller.” “Hi, Ron. What can I help you with?” “I was laid off from my employer due to downsizing. I was wondering whether to leave my 401(k) where it is or …

Protect against inflation or preserve capital?

A man is lying in his hospital bed, surrounded by friends and family, reflecting on his recent near death experience. “I always thought it’d be the ulcer that killed me. I did everything the doctors told me. I drank the cream, ate the butter, drank the milk. And now I have a heart attack!” This was a scene from the …

Step #5 – Retirement Preparedness Checklist: Create Enough Cash Flow to Cover Retirement Expenses

Think about this. Most companies don’t go bankrupt because they are not profitable. They don’t go bankrupt because the value of their assets has declined. They go bankrupt because they do not have sufficient cash flow to pay their creditors and employees. A company can lose money, on paper, but stay in business indefinitely so long as it has sufficient …

Step #4—Retirement Preparedness Checklist: Put Away 12 Months of Expenses in an Emergency Fund

Harold Wilson, former British Prime Minister joked, “I am an optimist, but I’m an optimist who carries a raincoat.” You probably already have some cash stored away for the inevitable rainy day. Indeed, you should have savings for those one-time, non-recurring expenses that come up—a water heater replacement, a roof repair, the auto insurance deductible—but this savings should actually be …

Step #2 – Retirement Preparedness Checklist: Insure Risks You Cannot Afford to Take

One of my clients, a physician, when discussing insurance, said to me, “We’re all just one step away from the banana peel.” She would know better than most. While it’s not particularly pleasant to think about becoming sick or needing assistance, healthcare and long-term care costs pose very real risks to your retirement nest egg. Can you afford to chance …

Step #1 – Retirement Preparedness Checklist: Create Personal Financial Statements

No self-respecting Chief Financial Officer would dream of trying to run a company without a constantly updated set of financial statements. Neither should you. That is why the first step, in our Retirement Preparedness Checklist, is to create personal financial statements. The Purpose of Personal Financial Statements Personal financial statements serve several very important functions: 1) they tell you where …

The Retirement Preparedness Checklist

Heavyweight champion and prolific pitchman, George Foreman, said, “The question isn’t at what age I want to retire, it’s at what income.” Before you turn in the keys to your office for good, you need to make sure you are prepared financially for life without a paycheck. Use this handy Retirement Preparedness Checklist and correlating worksheets to make sure you …