The big news today is the tech market being down by hundreds of billions. NVIDIA lost at least $500 billion in market cap today and my IWM calls are up in value by 50% and was very tempted to roll them into March but I’m going to hold strong. If I didn’t already have a…
Category: Investments
Play Time Over, Time To Make Money On IWM
Following up on this post regarding my plan to sell covered call options on IWM from back in November, I had written I would wait until the new administration had been sworn in and that’s now done so it’s time to make money. Since November I have been accumulating IWM via buy-write transactions and ended…
A Whopping 7.254% Interest Rate On Municipal Bonds
I’m giddy with excitement. I got an email from Fidelity on some new municipal bonds offering a whopping tax equivalent yield of 7.254 percent. The real yield is 4.57 percent but keep in mind that the interest is free from state and federal income taxes so the adjusted yield is equivalent to about 7.25 percent….
My Tax Plan for 2025
It’s December and I finally made some decisions around tax planning for 2025. As your income grows higher and higher, tax planning becomes a core part of your long term strategy. W-2 Income I decided to defer about 1/4 of my income for 2025 in the company deferred compensation plan and I will also be…
Using Swiss Currency To Hedge Your Investment Portfolio
There are many ways to hedge an investment portfolio especially if you have a majority of your investments in the U.S. market and indexes such as the S&P 500. One of my occasional tools is to hedge my portfolio through purchases of FXF or it’s related options. SPY vs FXF Divergences I asked AI to…
Stock Market Frenzy
It’s the dot com bubble all over again! I’ve spent a few days researching topics and opinions on Reddit and other social media and there is quite a bit of stock market exuberance. The S&P seems to be breaking all new highs on a daily basis, bitcoin broke $80000 this week and keeps climbing and…
XPAY, IRMAA, Medicare Premiums & AI
Does the title of this post have you confused? Well bear with me as I explain…. XPAY XPAY is a new ETF that does nothing more than give you your money back. If you invest $10,000 in XPAY, at the end of five years you’ll have gotten all your money back because it will give…
AI: Three Bucket Portfolio Allocations
I’ve been playing with AI again and this time I asked it about various financial retirement scenarios but this one feels worthy of sharing. Background: I asked ChatGPT to allocate the following buckets of money from various retirement accounts from whatever ETFs it thought was best. The table below represents how ChatGPT allocated the funds…
Order of Spend Operations: Taxable; Tax Free; Tax Deferred
Do you remember first learning the order of operations for a math problem such as 3 x (5 + 4) – 12 / 4 = ? The acceptable way to solve that problem is to add the parenthesis first then multiply by 3 so you get 27 then divide 12 by 4 to get 3…
ETF Covered Calls On IWM – Probabilistic Determination
One of my favorite income generating strategies is to write covered calls on index funds. My favorite one to do this on is IWM. But what’s my approach & strategy? I generally like to write covered calls 45 to 75 days out so I decided to share my strategy here for anyone interested however this…