by CareyAnn Peterson
Have you heard the phrases retirement income, cash-flow investing or creating a retirement paycheck? These types of phrases are buzzing in the investing industry. There has been a shift from buying and holding stock to buying investments that can generate income for your portfolio.
With a buy and hold strategy, you buy an asset in hopes that it will later go up in value and you can sell it at a profit. There are several reasons why this strategy can be particularly scary especially for someone who is trying to live off their retirement portfolio. You may be waiting for a very long time for that stock to appreciate in price and see any returns. Or worse, the asset might decline in price at a time when you need to cash-in for necessary living expenses forcing you to sell at a loss.
While you may get lucky from time to time, there is no way to time the market and know exactly when to buy and sell your assets. Unfortunately, the market is unpredictable and usually our fear and greed keep us from making good investment decisions. One thing we do know for certain is that the stock market is cyclical and throughout your retirement, you will be taking withdrawals during downturns and upturns in the market. This is why there has been a drastic shift to cash-flow investing and buying assets that can write you a monthly paycheck.
Many investors think the most important number is the one printed at the top of their account statement. However, we know that number will constantly fluctuate so it’s more important to focus on the ability of your portfolio to generate enough income for you to live comfortably.
If you would like to learn how Snider Advisors uses covered calls and cash-secured puts to generate income in your portfolio, join us on Wednesday, October 10th at 6:30pm for our Snider Method Introductory Course. During this live, two-hour presentation we will show you our trading techniques, our propriety stock selection criteria, our cash management approach, and give you an inside look on how we trade. Click here to register.