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401k rollover - "final" portfolio building
#11
(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.
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#12
(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.  

That seems to be a recurring theme in this thread, so thank you.
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#13
(02-15-2019, 12:09 PM)DividendGarden 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.  

That seems to be a recurring theme in this thread, so thank you.

Just remember. There's always a bear market somewhere.  Big Grin
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#14
(02-15-2019, 12:09 PM)DividendGarden 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.  

That seems to be a recurring theme in this thread, so thank you.
Sounds so easy until you are sitting on your life's savings in 100% cash and some of your faves are running significantly higher.  Makes you feel like you really missed the bus.  I immediately started buying small purchases of S&P 500 index on every dip for a month or more so I wouldn't completely miss out.  I figured if that's a terrible long-term idea, then buying individual stocks I knew were overpriced now, would not likely turn out so pleasant either.  The market dipped hard in DEC but it's not like my individual blue chips did much better. Because I owned large positions in AAPL and HD they did somewhat worse overall actually.
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#15
(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.
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#16
(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.
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