02-15-2019, 01:05 PM
(02-15-2019, 12:51 PM)NilesMike Wrote:(02-15-2019, 11:36 AM)fenders53 Wrote:(02-15-2019, 10:07 AM)ChadR Wrote: The only suggestion I would make is to spread your purchases over a few years. That way you're not buying something at a high price today.
Absolutely agree with Chad. Patience is the only thing that makes this massive rollover project work. I made some mistakes for sure but I also endured the biggest up and down market months in quite some time. This situation is just crying out to sell cash covered puts. Grab some instant income up front that far exceeds dividend payments, wait for the market to force you into some positions that you selected, at prices lower than today. I've made thousands of dollars while trying to build my final core port. The collateral collects 2%+ interest during those months you fail at getting back into stocks. It doesn't get much more conservative for this situation. If you don't like that idea, then I would buy a lot of 25% positions in your very favorite longterm stocks soon, knowing that you are very likely going to be sitting on some losses and averaging down to fix it over time. Finish up the positions with extreme patience because it will take a long time short of a true economic recession.
The selling of puts with strike price that YOU choose is WAY underutilized by most investors.
The benefit is two fold. It makes you wait for your pre-determined price to show up and you get paid to wait.
I am sure they are tired of our cash covered put preaching lol, but when we get too conservative picking our desired entry price, the market still gives us some folding money up front for waiting.... I have no kidding tried over 20 times to buy shares in AEP,XEL,SO and D since fall. I still have zero shares, but the thousands of dollars of premiums collected get me through the pain of missing out on the hundreds of dollars in dividends. It is a very under utilized strategy. I was on the fence until I heard Buffet selling it in a vid.