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Strategies & Market Trends : cash flow investing for retirement

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To: tyc:> who wrote (40)7/25/2011 10:03:40 PM
From: Paxb2uRead Replies (1) of 94
 
In the decline of the past I was 80% cash so I was not concerned either. I'm more of a trader than an investor. I have to admit I have not been much invested in the past 2 years either. I've been about 25% in on the avg. With that 25% I have made a measly 2 1/2 % to 3 % per year on entire portfolio, but with minimal risk. I am old in investing terms, and therefore take minimal risks. I guess I really don't have to have the income either. Therefore(in bullish mkt) I wait for a good buy (technically speaking) and then try to ride it up a ways and then sell the calls.

As far as continuing the same cash flow in a bear mkt, it won't be done. The premium goes down and therefore u can make ur % but that % won't be the same amount of cash. The % u make is based on the underlying equity value, and that will most probably be decreasing also. So, to use ur 8%, (example)8% of a $100 is less than 8% of a $1000. ---Peace
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