You've probably read headlines touting the incredible "Trump Bonus Checks."
- The Truth About "Trump Bonus Checks"
- Stop This Threat to Your Income in Its Tracks
- The Best Place to Look For Income Today
- Cash-Secured Puts: Keep the Cash Flowing - Even After You've Sold the Stock
I really do hate to say this, but the government threat to your assets is growing... again.
We've seen it happen in Cyprus, where bank accounts were "raided" to bail-in the country.
We've seen it in Argentina, Poland, Hungary, and other nations where private pensions were nationalized to help the countries' ballooning debts and deteriorating sovereign credit ratings.
I even warned you that the new MyRA accounts could be a shrewd way to get at your savings, and that the IMF was floating the idea of a "capital levy - a one-off tax on private wealth..."
Well, now a French "economist" is using his best seller as a platform to advance a tax "plan" centered on your wallet... Full Story
Believe it or not, before the financial crisis in 2008 that was hardly the case. Going all the way back to 1958, bond yields always outpaced those of stocks.
But thanks to Ben Bernanke and friends, bond yields have been driven into the basement. What's more, the central banks of the world are doing everything in the power to keep them there.
That's why investors are increasingly turning to exchange-traded funds that specialize in dividend stocks as vehicles for income.
This makes good sense for a couple of reasons. First, bond markets aren't very transparent, which makes bond prices difficult to come by, so ordinary investors get ripped off if they buy corporate bonds directly.
Second, in today's markets you will do better in a high-dividend stock ETF--especially one with an international portfolio, than you will in a bond ETF.
Let me show you why that is...
While this is a safe and highly effective strategy, selling covered calls does have a drawback - of a sort.
If the stock you're holding rises in price before the calls you sold expire, you could be forced to sell the shares at the option's designated strike price.
This isn't likely to be a huge problem since you'll be selling your stock at a profit. The problem is that if you no longer own the stock, you won't be getting the dividend.
Fortunately, this problem has an easy solution. It's a strategy called selling "cash-secured puts."
Using cash-secured puts, you can maintain your cash flow while you're waiting to repurchase the actual stock at a price equal to or below where you just sold it.