Over the last several years there has been a lot of focus on providing investors with a higher degree of protection by increasing the oversight of industry regulators. One very important term that sets advisors apart, is whether or not they are considered to be a fiduciary.
What is a Covered Call? Learn the Pros and Cons
Before diving into the complexities of a covered call trade and how it can be used to generate portfolio income lets first define what an option contract is and what it means to each party involved. There are two main types of options, call options and put options. A call option is a contract that gives the holder (buyer) the right, but not the obligation, to buy a security at a specified price for a certain period of time.
Option Premiums Part IV: Interest Rates
In the Snider Investment Method, we sell options for a premium, which is the amount we receive for selling someone the right to purchase our shares at a particular price over a given period of time. This is the final part of the series, with each article explaining a different component that helps determine the premium of a stock option. The last article discussed stock price and how price movements cause premiums to increase or decrease. This final piece will focus on interest rates and its effect on option premiums.
Divorce and Retirement
A divorce attorney recently shared this joke with me:
Shortly after celebrating their 60th wedding anniversary, Bob and Mary file for divorce. When their friends ask why they waited so long, they reply, “We were waiting for the kids to be dead.”
What can I say; divorce attorneys aren’t known for their sense of humor. However, the joke brings to light an interesting trend that has emerged over the past couple of decades – couples divorcing later in life, also called, “gray divorce.” Marriage has typically been considered a lifetime commitment, but with the average life expectancy more than 30 years longer than it was a century ago, a lifetime is proving to be too long for a growing number of seniors. From 1990-2009, the divorce rate for those over the age of 50 doubled.
Time to hit the books
“You can blame the corrupt markets, evil hedge funds, or the big bad banks for your financial woes. You can even blame yours truly. Off-loading the blame may feel good at the time but it’s not going to build up your IRA or send your kids to college. Your finances are your responsibility and the best way to protect and grow your money isn’t a hot stock tip; it’s education.” I recently read this in an article on Breakout, a financial blog located on Yahoo.com and I couldn’t agree more.
Simple Resolutions for the New Year
With the each New Year we reflect upon the challenges we faced during the previous year while making resolutions for the next. Many of these resolutions I hear from family and friends are often either financial or health related goals as these seem to be the two areas in our lives that always seem as though they could be improved. I think the problem with most of the resolutions I hear made this time of year is that they are far too ambitions and often never end up being fulfilled. With this in mind I’ve compiled a list of simple financial do’s and don’ts for the coming year that can help you get your finances in order.
New Years Reflections
I recently read an article by Dave Carusso, CFP®, 20 Financial Planning Questions That You Need an Answer To!, which really hit home and I immediately thought about all of our clients and friends at Snider Advisors. The premise of the article was to answer a list of 20 questions that he viewed as things every person should know about themselves. The list ranges from questions about financial planning matters, to the “big picture” in life that everyone should reflect on as we enter the New Year. Hopefully the questions listed below will help you realize what is most important in your life right now:
