Getting Rich Too Late

The key to getting rich is no secret.  It takes disciplined saving and investing over a long period of time.  I frequently give examples such as if you invested $10,000 at age 25 at an assumed rate of 8% and added $500 every subsequent month you would have $2,177,959.01 by age 65 when you retire. Continue reading “Getting Rich Too Late”

Interest Rates: Hot Housing and All-Time High Stock Market

I have often said in the past that if you can understand interest rates, then you can understand just about anything going on in the economy with regard to a macro-scale.  In today’s world, this couldn’t be more true.  Let’s take a look. Mr. Smith wants to buy a house.  He has $250,000 for aContinue reading “Interest Rates: Hot Housing and All-Time High Stock Market”

Optimism and Pessimism in the Stock Market

From time to time my friends will ask me about my investments in the stock market when they see headlines about the market.  For example I once had a friend ask me how I felt about stocks losing 2% for the week due to fiscal cliff worries.  If you have read even a few ofContinue reading “Optimism and Pessimism in the Stock Market”

The Cash Secured Put

We recently took a look at the covered call strategy and how it can be used to not only generate monthly income but also sell out of stock positions if your shares get called away.  If your shares get called away there is still a way to collect your monthly options premiums and get backContinue reading “The Cash Secured Put”

The Covered Call

The covered call strategy is a great strategy for many investors of both beginner and expert skill level.  In most scenarios investors can make money in sideways, falling, and rising markets.  I personally have used the covered call strategy countless times to take advantage of market fluctuations.  I have talked previously about covered calls whenContinue reading “The Covered Call”

Why I Love Dividends

A well run company with a fair valued stock price that pays a dividend is a beautiful thing.  One reason I love dividends is that regardless of the stock price, you will receive the same dividend payment.  For example, let’s say you invested $10,000 in JP Morgan (JPM) at a stock price of $100.00.  YouContinue reading “Why I Love Dividends”

Buying A Stream of Profit

There are many perspectives from which people can view investing money.  A lot of people view investing as buying stocks or real estate and hoping that the value of their shares or properties goes up over time.  Many of my friends believe that the only way to get rich through investing is to purchase aContinue reading “Buying A Stream of Profit”

Stock Market Drops Are Opportunities

Many investors would cringe if they woke up one morning to find that the S&P500 was down 3-4%.  On several occasions during the 2008-2009 bear market, the S&P500 was down more than 5%.  These kinds of down days were almost considered normal at the time in fact.  However, if you have a long time-horizon andContinue reading “Stock Market Drops Are Opportunities”

Shorting Stocks

Nearly everyone knows the mantra of buy low and sell high.  This is a great way to make money when asset prices are rising.  Many mistakenly believe that this is the only way to make money.  On the contrary, you will find there are countless ways to make money in the world, and there isContinue reading “Shorting Stocks”