Get Rich - Stay Rich - Investing for Monthly Income

Archive for the ‘Investing Strategy’ Category

Know the Rules of Investing

In a recent interview, Tony Robbins stated he has coached a successful trader for more than 20 years. The person he is talking about is Paul Tudor Jones, one of the most successful investors of all time and owner of the Boston Red Sox baseball team. Robbins found Jones, and other wealthy, successful people like him, were constantly looking to learn more about money. He stated:

It isn’t about the money! That’s why I call it ‘MONEY: Master the Game, his latest book.’ It is a game. A lot of people get offended by that, like ‘Oh my God! How could he call it a game?’ It is. “The wealthiest people in the world know it’s a game, and the reason they succeed is they know it’s a game. They know there’s certain rules. If you know the rules, you can win and if you don’t you’re gonna lose. Rather than be pissed about it, learn. “

I agree in being successful requires knowing the rules of the game. In my perspective, the rules are the trading plan – designing a strategy and knowing when to enter and exit a trade. At Get Rich Investments, we focus on producing income each month. To be consistent, e follow a set of rules we have learned from over 20 years of investing. The markets are always changing due to events, direction trends and volatility, This is why our income strategy incorporates several options to be successful. These strategies allow our members to be agile and to profit regardless of market sentiment and volatility.

Some investors are comfortable earning a 3-4% dividend yield to meet their income needs. If you seek more return, then join our income plan to earn 10-15% in income each year. We focus on world class stocks with nice dividend payments. But we juice our returns by collecting option income in addition to dividends. This strategy works with all sizes of account amounts- you don’t need a million to started. And, the sooner you get compounded your returns the more income you can create each month.

You can create 100s of monthly income checks using monthly dividend stocks.

Start learning the rules of successful investing.  Subscribe to the Monthly Income Plan.

How to Earn a Potential 134% Return with a 16% Dividend Yield

We strive to create monthly income by investing with several strategies. One long-term play for our monthly dividend stock portfolio is Center Coast Brookfield MLP & Energy Infrastructure Fund (CEN). While the energy sector has been soft in the past year, this has brought the energy stock prices down with it. This stock has a great monthly dividend with some significant price upside too.

This CEF trades around $7.80, which is close to the NAV. The big win is you get a 16% dividend with monthly distributions. This means you get all of your capital back in 4.5 years and still own the stock. According to Yahoo Finance, analyst have a 12-month price target of $17 on this stock. This is an increase of 118% on price alone. Therefore, your total return is projected to be 117% plus 16% dividend that equals 134%!

You should not fear the talk of return of capital. A distribution received from the Fund’s investments in MLPs generally are comprised of income and return of capital. The Fund’s dividend distribution policy is intended to provide monthly distributions to its common shareholders at a rate that over time is similar to the distribution rate the Fund receives from the MLPs in which it invests, without offset for the expenses of the Fund.

The Fund seeks a high level of total return with an emphasis on distributions to shareholders through investing in MLPs and energy infrastructure companies. Under normal market conditions, the Fund will invest at least 80% of its Managed Assets in securities of MLPs and energy infrastructure companies. The Fund may invest up to 20% of its Managed Assets in unregistered or restricted securities, including securities issued by private companies. The Fund may invest up to 10% of its Managed Assets in securities of issuers located outside of North America.

Regardless of the recent market swings, our outlook for the asset class remains favorable. To start, the corporate and financing maturation process that has contributed to sector-specific price volatility over the last several quarters appears to be largely behind us. Since the beginning of 2018 there have been over 15 simplification transactions resulting in generally healthier, lower risk companies in the sector, lower financial leverage, better distribution coverage, self-funding of capital expenditure and improved governance. This leaves us with less than 10% of the current market cap in structures with legacy corporate structures. In addition, public equity issuance is expected to significantly decrease, due to the transition to self-funding business models, reducing sector reliance on external equity capital markets. Sector fundamentals also remain robust as the energy industry set new records for production and transportation of U.S. hydrocarbons in 2018. The U.S. grew crude oil production by almost 20% in 2018 and is now the largest oil-producing country in the world—recently surpassing both Russia and Saudi Arabia—with output at 11.7 million barrels per day (MMb/d). Natural gas production is also at an all-time high after growing approximately 15% in 2018. Moreover, exports of U.S. crude oil, natural gas, and natural gas liquids (NGLs) hit record levels in 2018 and together grew by approximately 40% in 2018. We expect exports of U.S. hydrocarbons to continue to grow and expect that new projects will further add to our nation’s export capacity. One study estimates there will be almost $800 billion of new energy infrastructure investment through 2035 – with much of it expected to be centered around export activity on the U.S. Gulf Coast. Our optimism is somewhat blunted by geopolitical risks globally, and in particular, the worsening trade relationship between the U.S. and China.

At Get Rich Investments, this is the type of opportunities we want to create long-term passive income. I am a buyer here and you should consider adding this one to your income portfolio. We always have a diversified group of monthly dividend stocks to minimize market risk.

Join the Monthly Income Newsletter voted the best value for option income trading

Follow us on Twitter – @GetRichStayRich

Are You Prepared for Retirement?

Americans dream of achieving their financial goals…

They want to buy their own home, pay off credit-card debt, build an emergency fund, and one day be able to retire comfortably.

According to a recent survey of 1,000 U.S. adults conducted by LendEDU – an online marketplace for financial services – retirement is one of the top priorities for Americans… But more than a third don’t think they’ll achieve it.

What Americans want most
According to LendEDU’s survey, these are the most important financial goals for Americans (more common answers at the top)…

  1. Buying a house or apartment
  2. Retirement
  3. Paying off credit-card debt
  4. Building an emergency fund

While one out of five respondents said retirement is their top financial goal, 39% of people believe they will never achieve it. As LendEDU notes, the trend changes depending on age…

When it came to the age of those respondents that lacked confidence in being able to retire, 52% were over the age of 54, 30% were between the ages of 45 and 54, and 15% fell between the ages of 35 to 44.

Doubts over the reality of being able to retire increased among respondents who are approaching retirement age. Millennials surveyed weren’t thinking about retirement as much as Baby Boomers. Instead, younger respondents predominately said buying a house or apartment is their top priority.

Here is your FIRE Plan

Increasing income in more traditional ways, such as through raises and new job opportunities, may have the greatest effect on how much someone saves for early retirement. They suggest staying competitive in the job market or asking for raises, but not necessarily juggling numerous jobs and burning out.

At Get Rich Investments, we strive to create monthly income from monthly dividend stocks, ETFs, CEFs, covered call trades and other investments. It is best to diversify your holding using multiple approaches.

Join the Monthly Income Newsletter voted the best value for monthly income.

Follow us on Twitter – @GetRichStayRich

What Option Open Interest Means to the Trader

Option open interest is the number of options contracts open in a specific option series.  Open interest serves as a measure of option liquidity in the underlying option series.  The higher the open interest, the tighter the bid/ask spreads will be so slippage in trades will be lower.  When looking at option series, you want to be sure open interest is at least 5,000 and that the bid/ask spreads are no larger than 20 point apart.

When net buying or selling occurs in the underlying security, the open interest will show this change in the same direction of trader moves.  Increases in call open interest indicate the underlying is advancing up while increases in put open interest indicate more selling pressure.

Here are some rules on how to interpret open interest levels for OTM calls and puts in relation to the stock’s price movement:

  • Growing OI in Calls – confirms strength of stock’s advance
  • Declining OI in Calls – bearish divergence of stock’s advance
  • Flat OI in Calls – slightly bearish as no additional support for stock advance
  • Growing OI in Puts – confirmation of stock’s decline
  • Declining OI in Puts – slightly bullish as no additional support for stock decline
  • Flat OI in Puts – slightly bullish as it is not confirming decline

The growing interest in OTM and ATM options will confirm the stocks continued movement in the same direction.  Basically, this means the traders who have
been right are still buying more options for continuing the same direction.  In comparison, when open interest falls it indicates that traders are leaving the trade so it will likely end the current movement.  Traders are taking their money off the table.

Join the Monthly Income Newsletter voted the best value for option income trading

Follow us on Twitter – @GetRichStayRich

The Magic Number to Save for Retirement

Financial advisors always dodge the question of how much to save for retirement. There are research papers that contradict each other. They suggest there is no magic number for all or “it depends” or “it’s complicated.” I don’t buy this malarkey from the industry. Here is what I suggest and how I fund my accounts.

Don’t give up hope. From most research there’s a pretty useful rule of thumb for all people: Count on your fingers and … Save 10% — now.

Between you and your employer, set aside at least 10% of your paycheck. If your employer contributes 3%, then your share is at least 7%. If the company kicks in 5%, then you save at least 5%. If your employer does nothing, set aside at least 10% of each paycheck on your own.

Of course, there will be times when you’re between jobs or you need your money for a pre-retirement-age emergency. In those cases, you can put your money in a Roth individual retirement account (IRA) account. That way, you can take your contributions out without penalty. (There are also Roth 401(k) accounts, though they have more complicated withdrawal rules.) Don’t let the fact that you might need money someday keep you from saving for retirement now.

At Get Rich, we follow a monthly stock dividend plan where we get monthly dividends. We invest in 10 to 30 different stocks, notes and CEFs to diversify our holdings. To prevent yourself from running out of money in the golden years, reinvest 10% of your dividends back into your accounts. Therefore, if you are living on the dividends, you get a pay raise each month! And, your capital can leave a legacy for your family forever. Lastly, it is passive income that can be created regardless of where you live and play.

Subscribe today to start your monthly income plan.

Join the Monthly Income Newsletter voted the best value for option income trading

Follow us on Twitter – @GetRichStayRich

Financial Independence, Retire Early with Passive Monthly Income

Many people are becoming part of the FIRE movement, which stands for “Financial Independence, Retire Early.” Americans across the country are dreaming of leaving the traditional workplace in their 30s and 40s by investing enough assets in the first decade or two of their careers so they can rely on this nest egg and its investment returns the rest of their lives. Financial independence, to many of these individuals, is the ability to leave a stressful job for a less lucrative one, even if it means making a few sacrifices along the way.

These participants use passive income to help them get to their goal, especially monthly dividend stocks and other income producing investments. They’re typically less risky than investing in individual company stocks but it takes longer to see growth. There is definitely no one solution that you should be in this proportion of stocks and bonds, nor should someone try to time the market. Be comfortable getting there slower through using compounding income.

Taxes are also an important component to planning for FIRE, and individuals looking for financial independence should leverage numerous retirement savings and investment vehicles instead of just one type. Some workers may want to take advantage of the high contribution limits of a 401(k) plan ($19,000 in 2019) as well as a Roth individual retirement account, which is funded with after-tax dollars and then grows and is withdrawn tax-free.

Increasing income in more traditional ways, such as through raises and new job opportunities, may have the greatest effect on how much someone saves for early retirement. They suggest staying competitive in the job market or asking for raises, but not necessarily juggling numerous jobs and burning out.

At Get Rich Investments, we strive to create monthly income from monthly dividend stocks, ETFs, CEFs, covered call trades and other investments. It is best to diversify your holding using multiple approaches.

Join the Monthly Income Newsletter voted the best value for monthly income.

Follow us on Twitter – @GetRichStayRich

Three Steps to Early Retirement as a Millionaire

Notwithstanding a strong U.S. economy, only 25% of Americans say they feel financially prepared for retirement, according to a report just issued by the Certified Financial Planner Board of Standards. : Close to 80% of participants surveyed say they are not reassured that they have the best retirement savings strategies available to them. The good news is, three simple steps can help people build wealth and retire early.

While anyone can benefit from these action steps, they can be particularly powerful for financial independence and early retirement.

1. Pay yourself first

The single most important decision you’re going to make is to pay yourself first. This means, when you earn a paycheck, the first person who gets paid is you. Most people don’t do this even if they have employer matching funds. They focus on paying bills and other personal expenses without considering saving money.

2. Invest your savings

To be clear, simply saving a lot of money doesn’t make you rich. You have to have this money invested for growth. You cannot put this money in a money market or a CD, where it grows at 1% or 2%. You’ll never build wealth that way. We have created an investing plan to purchase monthly dividend stocks. These investments pay you a dividend check every month. Even better, we focus on yields above 10% to beat the market. How would you like 5, 10 or 30 checks coming to you each month?

3. Compound your wealth

When you receive your monthly income, reinvest a portion into new monthly dividend stocks. This grows your wealth over time, increases your income each month and offsets the impact of inflation. Also, this creates a lasting legacy as you are living from the dividends and not touching your capital.

The earlier you start, the better, thanks to the power of compound interest, which can cause your wealth to snowball over time. Yes, early retirement is possible as your monthly income exceeds your living expenses.

Create your legacy by joining our Monthly Income Plan today.

Want To Create A Second Income?

Get Rich Investments, an online leader in helping individuals to create income producing investments, has a newsletter to guide investors seeking a second income.  This is one of the most valuable tools for investors to learn how to create monthly income from stocks and option strategies.

Does the idea of using an income investing strategy to create a second income every month on your funds appeal to you?  Get Rich Investments has created the Get Rich Monthly Income Plan to teach individuals how to create multiple streams of investing income.  This is a low-cost newsletter providing the following services:

    1. A list of “monthly dividend stocks” that pay dividends month after month. These investments can pay more than 10% annually (focus on several 15% yields) and can sometimes be purchased at a discount to net asset value.
    2. A list of covered call trades consisting of high quality stocks such as the S&P 5-star research rating of the best stocks that are recommended as strong buys. These lists are updated each week with select trades added daily.
    3. Low risk investments to minimize market risk and to prevent your portfolio from taking a big lost in such uncertain market environments like we are experiencing today.
    4. We have created a strategy called the Blanket Put that will protect your investment from market downturns. The Blanket Put is your safety blanket to protect your portfolio from market downturns. This is worth the membership fee by itself.
    5. Access to multiple education resources to better learn how to be a more successful investor. Trades don’t end when you make a stock buy, sell a call, or complete the trade. Here we want members to be educated about how to manage a trade and when to take action.

The Get Rich Monthly Income Plan diversifies risk by seeking multiple streams of income. You can create monthly income by: covered call trades, monthly dividend stocks and dividends from owning high quality, conservative stocks. That is multiple streams of income from this simple list as we focus on “cash flow” to the investor to improve your quality of life. This is a true passive side hustle for income.

We have more than 20 years experience in the markets including trading covered calls and monthly income investments.  In addition, we have Masters in Business Administration (MBA) from a top business school and other experience in corporate finance and strategy.  We have authored several books including the original Get Rich – Stay Rich: Investing for Monthly Income that is currently on sale at Amazon and other bookstores around the world. It is important to you that your monthly income is in qualified, experienced investor hands who can be trusted to deliver the best trades.

Learn more about investing for income.

How to Determine Stock Price Trend for Call Writing

A stock can go up, go down or hold it’s trading price in a tight channel. For the covered call trader, you can look at this by different levels such goes up a little, goes up a lot, goes down a little and goes up a lot. The writer makes money if the stock goes up a little and a lot. The call writer will also make money if the stock hold it’s price and maybe if the stock goes down a little. The greatest concern to call writers is if the stock goes downs a lot. This is where a call writer can lose a significant amount of capital.

To determine what trend the stock is in before buying, look for these three trends on the stock chart:

Uptrending: the stock is in an uptrend when it is making higher high and high lows. The stock price will be rising higher from left to right on the chart.

Downtrending: the stock is in a downtrend when is is making lower highs and lower lows. The stock price will be moving lower from left to right on the chart.

Channeling- the stock is trading in a sideways range between price support and resistance levels. If you draw a line above the recent highs and below the recent lows it will be two horizontal parallel lines.

There are some charts that are so volatile that they cannot be characterized at all. The simple rule is if you can’t determine the stock price trend then pass on this stock as a covered call candidate. You do not need to be an expert at reading stock charts to be successful. If you can get the trend direction correct then you will have more consistent trading profits.

Learn more about call writing.

Join the Monthly Income Newsletter voted the best value for option income trading

Follow us on Twitter – @GetRichStayRich

You Can Help End Poverty

A 20% Dividend Yield from Small Caps with Monthly Dividends

Small-caps have been on a tear in Q2 clearly outperforming its larger counterparts. President Trump’s protectionist agenda and the resultant trade war fears started weighing on large-cap stocks that have considerable international exposure. And the domestically focused pint-sized stocks soared

In additions to trade tensions, there were some other factors that played their roles in pushing pint-sized stocks higher. The U.S. economy has been on steady ground. This gave a boost to small-cap equities. Apart from this, upbeat earnings sent small caps rallying in recent times.

And what could be better than a high dividend feature attached to this segment? The fund yields about 20.45% annually.

The UBS ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN (SMHD) is linked to the monthly compounded 2x leveraged performance of the Solactive US Small Cap High Dividend Index, less investor fees.

This is a relatively new ETN released in late 2018. It does carry risk being in the small cap area, being leveraged and with such a high yield. However, it can offer diversification to a high yield portfolio especially since it tracks small caps that usually don’t produce yield. It is trading 30% below its stock price high for the year.

Leveraged ETNs have interest-rate risk since they implicitly borrow at short-term interest rates to finance their leverage. A significant part of their high dividends results from the carry that is generated when the dividends paid by the securities in the indices upon which the ETNs are based exceed the implicit borrowing rate. While typically called dividends, the payments from ETNs are technically distributions of interest payments on the ETN note based on the dividends paid by the underlying securities that comprise the index, pursuant to the terms of the indenture.

As with all investments, you should be conservative with the total percent of your portfolio allocated to high risk. I like to have a few high yield stocks rounding out my monthly income plan. SMHD is in my personal portfolio as I believe the dividend is sustainable. Over time, the yield will compensate for the increased volatility and risk.

I am working on creating several new portfolios. The one most exciting is the monthly income stocks as a income resource to reach financial independence with passive (side hustle) income. I will hae more to come on this opportunity.

Join the Monthly Income Newsletter voted the best value for option income trading

Follow us on Twitter – @GetRichStayRich

Free Traffic Generation
Subscribe for FREE Trades

Subscribe for FREE Trades

* indicates required
/ ( mm / dd )
Archives