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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (8518)	10/5/1999 5:36:00 AM
From: Kathleen capps	Respond to of 78523

Paul, Your message was just about the best I've ever read on SI. Thanks for posting it. I'm going to print it out and hang it over the computer. It goes a long way in explaining why I ultimately do better (i.e. total return) with my husbands IRA than with my own. Kathleen

To: Paul Senior who wrote (8518)	10/5/1999 5:54:00 PM
From: Allen Furlan	Read Replies (1) \| Respond to of 78523

Paul, interesting views on investing for our parents. I am a senior but invested for my Dad for several years when he was in his 90's and only had his lifetime savings of about $40,000 and social security to live on. (You can live on that in Cleveland where rent in a decent apartment is $250 and you can afford to go bowling 3 times a week besides). My approach was to buy value stocks with options and to write covered slightly in the money calls Overall I was able to generate 6-7 thousand per year without depleting his capital. That is why I like to invest in stocks with options, for example my last two trades include ali and avl, both with options that permitted me to enter with approximately 20% downside protection but limited upside. I still think such form of investing is worthy of consideration especially when a bear market is still a distinct possibility. Of course an investment in a go go fund would have been many times better during the past bull market, but the risks would have been intolerable.