How to start investing at age 55 and retire at 62 with a GREAT TAX FREE monthly income
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- Опубліковано 26 вер 2024
- #expat #philippines #retirement #walkingstreet #angels #philippinevacation
PART 2: • How to start investing...
My name is Kevin. I hope you will enjoy my videos of my great new life of early retirement in Dumaguete in the Philippines. Come along on my island hopping trips to beaches, snorkeling, mountains, waterfalls and other Philippine destinations. I’ll introduce you to friends, so you can learn about dating, finding a place to live, restaurants, and best places to buy groceries.
FB:Kevin Jennalyn
Jennalyn’s channel is: Filipina life with Jennalyn
Email: 2muchtimeonmyhands65@gmail.com
PayPal: www.paypal.me/...
Here are some corrections and additions. Thanks everyone, and please let me know anything else that should be added!
1. As of 2024, if you are under 50 you can contribute $7K and 50+ is $8K
2. You must own the stock 2 days before the date of record or 1 day before the ex dividend date to get the dividend
3. You CAN buy fractional shares from Schwab. They are called slices
4. There is an income limit to contributing to a ROTH: $161K for single and $240K for couples. Google “back door” ROTH for a possible solution to get around that
5. If you do these strategies in a non ROTH, you will be taxed short term capital gains on any premiums and stock sold after holding less than 1 year and long term capital gains on stocks that you owned more than a year
6. I made two videos on the stock strategies that I use about 7 months ago. They explain things a little bit better. Checkout my playlist and scroll down
7. You must have the ROTH for 5 years before you can take money out without a penalty
❤
Fantastic. Thank you. Great job. I’m 53 in upstate New York and you have opened my eyes to a new world of opportunities. I didn’t know where to start. Again. Thank you.
Its never too late to start. You have like 7 more years to contribute the max on Traditional IRA and after u can withdraw w/o 10% penalty. Also you may chooses Roth IRA instead depends your tax/income situation. Lastly the backdoor Roth IRA is a good strategy but in New York (i live in NY) you will have not only federal, but also State@@superpimpdlx
Thanks a lot from a 45yo solo ma!
Thank you. I’m 48 single mom starting out a new life. Your video helping older gen to build retirement is very thoughtful and helpful!
First and foremost, the fact that you are not a financial advisor is a good start. When an individual genuinely wants to support others, worth listening❤
Thank you blue! I just want to bring these 3 things to everyone’s attention: ROTH IRA, dividend reinvesting, and selling covered calls…..I wish someone would have explained all of this to me when I was 42, and starting to make good enough money to do this!
U lost me at the very confusing chart.
@@davetod9169sorry Dave, I made 2 videos about 8 months ago if you want to check out my playlist
When a man doesn’t use Excel or fancy PowerPoint but instead he uses a whiteboard n a tree branch as a pointer. U know, he’s a good guy. Also, all those writing n calculations took a good amount of time n efforts. Yet, he did it. This tells u he truly care n wants to share his knowledge about wealth building. Those who grasp what he’s trying to explain re: options trading. It will change your life. Take care, everyone.
Thank you EC!!! I appreciate your response!!
This is probably the best channel created by an expat in the Philippines 🇵🇭! All the others talk about the same old stuff and it’s obvious that many of those expats are scrambling to make income from UA-cam because they don’t have enough Social Security and retirement benefits to cover the cost of supporting their girlfriend/wife and her family that is most likely,very poor. Personally I’ve never considered my channel nothing more than a hobby and journaling to save videos that interest me.
I have actually learned something very important from watching your channel and have invested in a traditional IRA every year for the tax benefits but a Roth IRA makes so much more sense because as we know. Taxes are just going to increase by the time I retire and start using that money.
As for Covered Calls I like your strategy and could use my self managed retirement accounts to do this with those shares. It’s literally just another way to trade but not always having to sell shares every time and profiting off the contract and risk involved. I wish I had never sold shares the traditional way and always done CC’s. Thank you so much for sharing your experience and knowledge!
Thanks, I am glad you liked it and the channel
I think selling stock options is a great way for retirees to generate additional income. The regular income stream is attractive.
It’s how I have made a living since December 2021😉
I've been selling covered calls over the last 10 years. Learned how to master it & now sell covered calls weekly and earn $1800 week avg. The best advice comes from my father (who taught me how to sell cc) who said "don't get too greedy" and choose a good premium at a profit but don't hunt for the great premiums too often. $1800/week premiums on cc alone is very nice for me, plus the increased value of owned stocks is growing. I'm 60 yrs old now and having fun doing this! Nice, detailed video.
What is a covered call?
I've been spending the past year learning how to trade but never looked into options. I figured it would be too difficult and/or at least let me learn to trade first before dipping into options world. Just wondering, in a bear market, do covered calls still do well? Now I'm really interested in doing this.
Keep the options investing videos going, Thanks.
This took TOO LONG!!! This is the last one of these!
Great job, Kevin. You are genuinely helping us. There is a special place in heaven for you.
Well done Kevin. I’m retired 17 yrs now and retired at age 60 with enough money to make it to social security time.
Thank you John, we appreciate you watching!😉
You're a great teacher Kevin, well done!👏👏👏
Although I think some of your examples are a bit optimistic, sometimes you have to show the positive side of compounding to make people see the light.😊
I can imagine you're exhausted after this one, but perhaps teach the "Poor Man's Covered Call" at some point in the future? It might be a good strategy soon if we go into a declining market.
Personally on Friday I took a huge bet on Friday buying SPY Put Credit Spreads, (expiring from end of February to June 28th), as I think the market will drop after either the Jan or Feb OPEX as the flows start to change then. Jan 17th-18th is the date I've been waiting for to go short for many months now, and it's finally here, now we'll see if I'm right or not!🙃
I'm hoping to head out to check out the Philippines later this year, and I enjoy all your videos, but this was a favourite for me! Well done!🙂
Thanks, I am glad you enjoyed it!
Thanks so much Kevin…you really are a MATH guy….lol. Good stuff
Hahaha, not sure if it’s a curse or a blessing
Hey Kevin, I sent an email, not sure if it came through…Can one trade options on a dividend stock? Do you still get the dividend?
Kevin my End of April 2024 update: My 3 month old Roth with a startup of $15k (7k 2023, 8K 2024 ) ... is now $22,400.... about 49.3 % return so far. Thanks again for the inspiration.
Hope u are having a great USA vacation.
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THAT IS AMAZING!!!! I am going to post PART2 tonight on selling cash secured PUTs. Post this comment on that video, and I will pin it(make it #1)
@@TooMuchTimeonmyHands65 Will do.
Hi, I am new to the channel and starting watching these videos. Could you share how did you do it? I am mostly on dividends stocks and real state in that account, but I am not even near of what you did. Thank you in advance!
@@graceg8834 If you are asking me this question, look at Kevin's' "Part 2" that he uploaded recently. He pinned my comment at the top and within that comment, I replied ... with a brief outline of my strategy.
1000 Thanks Kevin. I know it was a ton of effort put into this video. It is greatly appreciated. Coming to Duma for my first time in March. Hope to meet you.
Thanks again.
Thanks for watching, I appreciate it
Thank you for this! I'm 100% new to stocks, options, etc. So I really appreciate you breaking it down. I am a math/spreadsheets/numbers person. So the numbers excite me. I'm going to listen to this again and take notes and really start learning about this stuff. I'm 45 now...So I should be doing pretty good by 62. Thank you!
Thank you for watching Tanisha! I’m glad you found it helpful, and yes…starting at 45, you should be VERY well off😉
I’m 46 and want to retire at 57. I have a little over 100k in my Roth. I put $500 a month in a low cost dividend index fund and then in December make sure I maxed out the Roth. After watching this I will learn more about option trading. Maybe I can get better gains
It sounds like you are WAY ahead the game! I hope the options help you out
Oh yeah! Gotta go to work here in NC but cant wait to watch later today! TY!
Thanks for watching, I hope you find it helpful!😉
Hi, Kevin! I am Brian of Texas, living in the Phillipines also. I have a Roth IRA with Dividend Stocks, I like your video. You are a kindred soul, I wish you good fortune and everlasting happiness!
Thanks you Brian, I appreciate that 😉
Kevin, watching this was almost as exciting as watching a video with Jennalyn. Thanks for sharing both of them with us.
Hahaha, I know I would rather look at Jennalyn than me too😂
@@TooMuchTimeonmyHands65 Get yourself some of that AI video enhancement stuff. Some of it is quite good, making a man with a need for a shave look like a hot woman! The side-by-side video comparison of that was more impressive than I expected.
@@TooMuchTimeonmyHands65 LOL--how about next time, have Jennalyn also in the video pointing out the areas you are discussing (i.e. Vanna White impersonation), however, I think doing that could make more people confused due to not paying enough attention to what you are saying, but your views for the video will be much higher with most people watching to the end. 😀
BONUS - For single filers, if your 2023 taxable income was $44,625 or less, or $89,250 or less for married couples filing jointly, then you won't owe any income tax on dividends earned. The numbers increase to $47,025 and $94,050, respectively, for 2024. My folks are retired and make amazing income from dividends and they're TAX FREE!
Thanks!
Excellent teaching video. It will help many people. Thanks a million!
Thank you for watching HM! I am glad you liked it😉
Great Job!!! I started watching your channel for info on the Philippines, but this was great information. I watched other youtube videos on covered calls and yours is by far the best. You explained it without all the extra jargon that confuses new investors. Keep up the great work and don't listed to the losers who leave negative comments... they are just miserable.
Really appreciate this. i'm 55 and have been wanting to get into stock options
I will be following your channel👍🏿💯✈
Thanks man! I wish someone had shown me this at 40!!
@@TooMuchTimeonmyHands65 Ditto!
Kevin, Thank you for putting this all together, it was very helpful and your time is appreciated. As others have said, ignore the negative input from people who rarely ever put in the time to help others. You are doing what you are teaching (and not selling anything), and that in itself is commendable.
Thanks Scott!! I’m glad you liked it 😉
Hey Kevin, great video. Thanks for this valuable information. You have reached the exact person that you have intended to reach. I know nothing about saving money through stocks, and this was valuable information. I just turned 53 and I intend on retiring in Southeast Asia when I’m 62. This Roth IRA strategy seems sound and I have the ability to invest the 7500 yearly until 62.
I intend on implementing this strategy this year. I’ll be visiting the Philippines for the first time flying into Cebu next February.
The first of many trips over the next few years, to see exactly where I want to retire.
Hopefully on one of these trips, I can connect with you and share a beer
Thanks for your content!
And by the way, you have one of the most beautiful, exotic Filipinas I have ever seen.
Keep doing what you’re doing brother.
Thanks! I’m glad it was helpful for you 😉. Sure, we can grab a beer or two. Just let me know when you get here. Yes, Jennalyn is a head turner 😀
Thank you Kevin for sharing your thoughts and ideas in this and your previous two videos on the subject. I appreciated it. Wishing you much success.
Thanks Ken!
I wish I had learned this 10 years ago.
I hear ya, but better late than never 😉. I appreciate you watching!
Thanks for taking the time to do this.... Sure helps up guys that have always been confused with this..
Thanks, I am glad it helped 😉
Thank you Kevin
Thanks for watching Steve
Thank you so much for this information. I’m 54 with no retirement, wore my body out for others to make money. I hope you post more information like this. I opened a Roth account as soon as I finished watching.
Not financial advice but you should look into investing into Cryptocurrency. We are currently entering a bull run. Lots of potential gains will be made. But just understand the risk before getting involved.
Keep at it, the options math adds up, it's slow to start but snowballs. Get a good spread sheet to track your options, I found one on another UA-cam channel that lets me track the puts and calls and calculates the return based on the strike price and what the call/put pays. If the return isn't high enough I pass and move onto a different stock on my list that returns more.
Good stuff Kev! I need to get into options again The money that can be made is real!!
You know it works! I have not had a real job since 2021😉. Don’t forget the ROTH
@@TooMuchTimeonmyHands65 You are 100 percent correct Great presentation
Great Video Kevin. Thanks for the info and for putting these videos up.
Glad you liked it!
This is priceless thank you so much 🙏🙏🙏
Thanks Ty!!! I hope it helps you!!😉
VERY INTERESTING ! I learned a LOT , i can see all the work u put into it . Ignore the complainers that dont appreciate others work .
Thanks for watching Nellie! I am glad you found it helpful 😉
Kevin, Not that it matters but PSEC is a BDC not a REIT. Yet both are RIC's (Regulated Investment Company). I love your topic, you are 100% correct on the PSEC mockup. Compounding even with High Yield stocks hold merrit even though many call them Yield traps. I wish I had started investing in BDCs and REITs a long time ago. Only been doing it for 10 years. should hit six figures on anual dividends this year for the first time. Its like printing money.
Thanks for watching, and the correction Alan! I appreciate it😉
Did you start with more or less than the $7,500 mentioned in the video
Following
@@RodNubianKing - I am 59 years old. At the end of 2013 I started dumping my Mutual Funds for BDC's and REIT's. I think if I recall I had about 300k in my 401k. back then I hit 20K dividends. I don't really like to say what my value currently is. But I hit 97.5K in dividens for 2023. I own BDCs -> ARCC, GAIN, MAIN, HTGC, TRIN, FDUS, HRZN, WHF, MNFC, SLRC, BXSL, CGBD, CSWC, FSK, GBDC, MFIC, MRCC, OBDC, OCSL, OFS, PSEC, TCPC, TPVG, TSLX, WHF. I still have a Mutual Fund, CEFs, and REITs. I recomend HTTP://SeekingAlpha.com for research.
Thank you for posting this video. I just been researching this. you gave me clarity and guidance. Please post more videos like this. I would appreciate it.
I don’t know if there will be any more of these Dennis. I was exhausted afterwards 😂
@@TooMuchTimeonmyHands65 Use a spreadsheet--easier, faster and accurate too. Should be simple to set up for the dividend stuff but more involved for the option demonstration.
Thank you so much for doing this. I have wanted someone to walk me through this.
I’m glad to help Yvonne!
Thanks for all the info in the video. Great stuff!!! With all the work you put into the video you deserve the beer now. I will mention that even though you can withdraw from a Roth IRA at 59 1/2 years old that you still need to have had the account open for at least 5 years before you can start taking money out tax free without early withdraw penalties. Just keep that in mind if anyone going to start a Roth IRA.
Thank you for the add on!! Yes, hopefully someone will start at 55, and not need to touch it until 62
What if I have multiple ROTH accounts, how is the 5 year period determined? I opened my ROTH with Schwab couple of years ago but moved it to RH recently. Does the original account open date with Schwab counts for the 5 year period? This month I have to put away another 7.5K into my Roth for 2024, but I am thinking I open account with Webull as I like their features. If do open a new Roth account, then I have to wait for 5 years to withdraw money from this account?
Undoubtedly, the best video on stocks and investing I have watched. And I have watched quite a few, trying to figure out where to begin. Thank you so much. So glad I found this.
This is a great video. Start today, reap tomorrow. Every small investment is a step towards your mountain of dreams. Keep this in mind as you embark on your investment journey. Every step counts!
Earning effectively is all about making smart investment choices and committing your resources to legitimate and secure platforms. It's crucial to do thorough research and due diligence before diving in.
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His expertise truly shines when you look at the results.
Within just two weeks, his strategic recommendations and timely insights allowed me to earn an astonishing $65,400.
@@AustinSean-Same here, I started with $35,000 now earning $128,300 bi-weekly profits with his trading program. He's really amazing.
Thanks! This was a fantastic strategy. Thank you for sharing.
Thank you JGeorge! I appreciate it, and I’m glad you found it helpful 😉
THANKS I WATCHED THE WHOLE THING.. I LEARNED A LOT.. WILL WATCH AGAIN SATURDAY.
Glad it was helpful! I appreciate you watching 😉
Great video. Thank you for sharing. Looking forward to more breakdowns like this.
You got it!! Thanks for watching 😉
Kevin! Great video sir thank you. Fellow Cebu Expat here. I am on the same path. Loved your explanations and the time you put into this. Salamat sir!
Sorry for the late response!!! Thanks for watching…I am glad you found it useful 😉
So along with other people here, i appreciate the work that went into this video and your substitute white board, lol! Anyway i had no idea i could do all that stuff inside of the roth environment so that's super cool info. My brother already moved to the Philippines and loves it. I can still work here so im going to maximize income then join him in a year or so. Anyway, thanks I finally get the whole call thing. Finally!!
Thanks for watching Patti, I am glad you found it helpful 😃
Excellent! I’ve been doing the same my friend for about three years now. Great way to pull income off holdings. 👍
Thanks for watching Sam! I appreciate it😉
Kevin, After 1 month in my New ROTH ... selling calls /Puts ... $1200+ profit with funding the Roth for 2023 ($5600)... about 21%. Thanks for opening my eyes to Options.
That’s AWESOME Mike!! Congratulations 😉
A couple of comments….
Trading highly volatile stocks is risky. Period. Some of the stocks Kevin has mentioned are “penny” stocks. Some have never made a dime of profit. If you deal with stocks like these sooner or later you will get burned. Will the “burn” be more or less than the money you made before then? That’s the gamble.
Second, if you do have stocks in a non tax free or tax deferred account, and you sell calls on them, and you get assigned, you will have to pay taxes, short or long term CG, this year on that sale. Do the math. Making a few bucks per share mayn’t be worth it.
Kevin means well, he believes he’s found the pot of gold, he’s not trying to scam anyone. But! Beware! You CAN lose money with ANYTHING to do with the market. Don’t be fooled - it’s a gamble.
Total agreement as the stock market is based on Risk and Return. What happens when these few risky stocks crash? Yes it is possible to make money on calls and puts but the risk is the cost vs price of this stock. Buy real estate as only so much was make and will never blow away.
I said that I don’t recommend anyone buying these stocks. Yes, you do pay short term capital gains on the premiums and any profits on stocks sold under a year a non ROTH. It’s not a pot of gold, but it sure as hell works for me. I have not had real job since 2021. Of course you can lose money on stocks BUT that has NOTHING to do with the covered call options
I am a passive investor in an apartment complex, and own land in NC. You CANNOT lose money selling covered calls unless YOU sell the stock for less than you buy it! The proper thing to say is that you can lose money on a stock….not the option strategy
Kevin, You are an amazing guy. I appreciate this lecture very much, rehearsal for me but have learnt so many new things. 🎉
Roth Ira - in Canada the equivalent would be a TFSA, and 401k is RRSP or RIF at later years....
Thanks, it’s good to know that Canada has that option too
Kevin, excellent blog, out standing in fact. Some times, one cannot see the forest for the trees. I plan on retiring in five years If the Man upstairs grants me the health and time. I started putting away for retirement about 20 years ago, of course the investments grew... Currently, I have a nice amount invested, but with the wealth of information you provided, I intend to move $100K from my TSP into EFTs and manage myself. The growth potential is astronomical, as long as I use Put Options. Thank you for sharing, it is sincerely appreciated. Have a great day.
Thank you SO much Rico! I apologize for the late response 😉
My friend has been trying to explain this to me as we are both planning on retiring in the Philippines and I am in an options bootcamp to learn more in depth now but yours makes the most sense to me, thanks for sharing.
Thanks James, I also made 2 videos about 8-9 months ago showing actual trades online that might explain everything better. Check out my playlist and scroll down 😉
To collect a dividend you must purchase BEFORE the Ex-date. NOT on the Ex-date.
You are CORRECT! Thanks! It is actually 2 days before. I will move this comment to the top
I've ben going through TJ the wheel deals option info on youtube but you broke it down way better. Thank you.
WOW, that’s good to hear. I thought I blew through it too fast
I'm a single, 43-year-old father who resides in Hamburg. If everything continues to go well for me, I intend to retire at age 50. I couldn't be happier right now than I am that I just bought my first house last month. I'm so happy that I made wise choices that altered my life forever.
Salutations, dude. At your age, you're doing extremely well. I'm 54 years old, and right now my finances are a mess. Any helpful advice would be greatly appreciated in helping to mold my life. I want to buy a home of my own.
It seems like I used the FIRE movement to manage my finances. Investigate it further by doing some research. With the help of a financial professional, they were then successful when investing in stocks, cryptocurrencies, and real estate.
Thanks for watching Bob! It sounds like you’re WAY ahead of the game 😉. Congrats!
I appreciate your nice words and would like to get in touch with your account management consultant.
I encountered Vivian Carol Gioia through my wife, and I emailed her. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested in. You can hunt her up online if you require care supervision.
At present, the most prudent consideration for everyone should be diversifying their income sources, ones not reliant on government support, particularly given the ongoing global economic challenges. This remains an opportune moment to explore investments in assets like digital currencies such as Bitcoin, Ethereum, and XRP. thanks to Flora Elkin for her guidance in these fields, her proficiency is outstanding
It's unexpected to come across her name here. She understands every beginner’s intention and fix you to a trading course that matches your capacity, she knows her stuff! Her advice has been invaluable to my trading journey. Definitely worth giving a shot!
It is really refreshing to see a comment about Flora Elkin.I have worked with her also for months now, reached out after reading more about her on the internet. she simplifies matters, whether it's a market surge or drop; her approach consistently keeps you ahead of the trend, She's a guru i'll say
Nice to see this here, Flora Elkin's understanding of market indicators is impressive. She knows exactly when to enter and exit trades for maximum profit. her siignals are top notch
Over the years, I've been a part of numerous trading programs, sifting through a barrage of information. Yet, nothing has come close to the sheer clarity, depth, and precision of Flora's insights. It's akin to finding a diamond in a coal mine.
Thanks for watching, and everyone DO YOUR OWN DUE DILIGENCE!!!
Thank you so much for your hard work helping others. 🙏🙏🙏
This is my formula. Listening intently
Thanks for watching Tina! I appreciate it😉
Thank you kindly for the education. It’s much appreciated! I had no clue about these retirement investment opportunities! God bless!❤
Very valuable, thorough information. Excellent.
Thank you James! I am glad you found it useful!!!
The responsiveness of the rbt platform is impressive. No delays, perfect for IPL Lottery 🚀
1:05:30 - Age 61 of ARKK you needed 42 shares to top off the next hundred, but you had 52 shares in your math.
Ah, thanks. I was pretty tired at that point. So, you would actually have more when it was said and done 😉
@TooMuchTimeonmyHands65 After that many calculations, it's absolutely forgivable. The time you put into this is much appreciated!
Kevin, Thank you for all the hard work you both do in creating your videos. You did a wonderful job explaining covered calls. Very informative and easy to follow along. Keep up the good work.
Thanks Brian!!! I’m going to do another video Monday morning when the market opens…and post it Monday night in the US
I really appreciate the time and effort you put into this. It's going to help me a lot.
Thanks! I appreciate you watching 😉
Those PSEC "annual returns" are correctly calculated, but to clarify for anybody who was confused, they are the annual returns against historical cost basis, not the annual returns of the underlying stock in any particular year. The annual return of the underlying in this example must be constant year to year, as neither the stock price nor payout changes.
If investing in this manner produced exponentially greater annual returns on the underlying, I'd be a literal billionaire from my ~2 decades of DCA-ing and DRP-ing into Realty Income (I'm not 😅), and hedge funds wouldn't exist (50% annual returns on underlying - and rising every year - would smoke rentec).
AND AGAIN!!!! I am NOT telling anyone to buy that stock. Thank you for the explanation 👍🏻
You could be a bit safer by taking a bit lest "risk" so Larger more popular funds like JEPI JEPQ SCHD would be more comforting in a Roth but with the first 2 you're giving up 3% to PSEC.
Appreciate your sharing this video ! Definitely learning here . 👏👏👏👍👍👍
Thanks for watching ZTUBE!! Check out part 2😉
I'm so glad I stumbled across this video. Thank you for sharing your knowledge!!🙏🏿🙏🏿🙏🏿
Thanks for watching! I am glad you found it helpful 😉😀
Very informative. I learned from this. Thank you very much.
Hey Kevin, Mike here. Just wanted to say this information is extremely helpful. Thanks for sharing!
This is some good shit. Why didn't I know this earlier in my life....
amazing video you explained it very well i cant wait to try it for my self thank you for sharing
Thanks for watching! I know that I probably lost over 90% of the viewers….but hopefully everyone gets the main message: TAX FREE ROTH, dividend reinvesting, and selling covered calls on existing stocks to supplement their earnings 😉
@@TooMuchTimeonmyHands65 I'm just going to mention to observe the 5-year rule for Roth IRA's. While "contributions" to a Roth IRA can be withdrawn without taxes (or penalties if > 59.5 age), I think the earnings need to be held for 5 years before being withdrawn tax free. I think the order of Roth IRA distributions are Contributions first, followed by earnings with the oldest earnings first. I think the newest earnings can be taxable if not earned more than 5 years ago but I'm still looking into that for my Roth IRA before I start taking money out of it (I'm 64 years old so no age penalty).
Great video, just remember. Time decay for psec is devastating it will eat away the principal very soon and the dividends won't compensate the decay psec... For a long term strategy will be good to compound sphd, pyd, pey and the great jepq.. 👌
👍🏻that’s why I said this was just for educational and entertainment purposes only, and I don’t recommend any of the stocks in the video. Everyone needs to do their own due diligence. The purpose of this video is to enlighten people about the ROTH IRA, dividend reinvesting, and selling covered calls
I hold SPHD & JEPQ
@@MarkoPolo8888 smart move
Thank you Kevin. I seen you on Marks channel, so stared doing calls in January. Doing very well so far.
Thanks for watching Richard! I am working on part two now
It's now 7,000 contribution max for the year 2024. I have the option of a 401k Roth too but In That I can't do options or choose beyond what they give me - a couple of low expense ratio Index funds available though but I still hold off considering it (tying up money).
Thanks for the update, I didn’t know they raised it this year
401k Roth isn't the same thing. The funding limits come from the $27.5k annual contribution limit. You can still open/fund a Roth IRA outside of your 401k to the Roth limit. I've been putting part of my 401k into Roth 401k for the last couple of years.
I'm too scared to at this time bigjohnson. I've got it set up login etc but never funded.@@bigjohnson7415
Beautiful explanation, you are my eye opener , thank you very much, what I really impressed is when everyone is simply saying reinvest divident and it will give you good returns but you really showed with a clear example showing month by month and year by year which is fantastic,
Thanks for watching!! I am glad it was helpful 😉 Believe it or not, Berkshire Hathaway(Warren Buffet’s company) made $736 million in dividends last year alone off of the $1.3 billion dollars of Coca Cola they bought in 1988!!! That’s 57% in a year…they just keep reinvesting them too
LOL Covered call trolls! You cracking me up brother. Only risk on a covered call is if your underlying stock drops quickly in price to the point where you cant sell calls anymore. Good dividend stock you dont mind owning, then who cares? Wait it out or DCA into a second position, lowering ave stock price and start selling calls again. Good info and strategies my friend.
Great video Kevin, i'll be there in a couple of weeks. Be nice to meet you guys.
Thanks for watching Steve! Sure, let me know when you get here
I really do appreciate all your time and effort!! In a big way 55 this month!! New Subscriber here, in appreciation
Thank you Cindy! I appreciate you subscribing, and I hope this helps you out a lot 😉
Keven, thks for the big effort you put into all those numbers. you are certainly good with numbers! on paper it sounds attractive, low risk & spending min time each Sunday on simple routine actions. (a spreadsheet of the strategy could be built & might be useful, again using the same 2 simplified assumptions you made).
i take it you sell a call each week without fail, irrespective what the underlying does. this removes you from having to make a decision “should i or should i not sell the call”.
the market being what it is, there will be possible, if rare cases, where the underlying keeps dropping towards zero over a long period. the increasing gap between your call strike price & market will result in call premiums going to zero (or less than the option sell brokerage). if the underlying never recovers to the price paid, the call will never be exercised, & you’ve made a paper loss which must eventually become a real loss. so in my opinion, a risk of loss still exists (by diversification over multiple stocks, you can reduce this risk).
As an Australian citizen, i could do this from Australia or anywhere else for that matter, in my super fund, using US stocks/options for liquidity & Interactive Brokers who i’ve used previously. Not sure if your particular broker allows non - US citizens to open an account. Perhaps you know the answer.
Here in Australia we have tax advantaged retirement accounts with capped annual contributions, similar to your Roth IRA’s. we call them SMSF’s (self managed superannuation funds), which i would use, subject to broker approval.
We have SMSF’s (self managed superannuation funds) too, in the US it is called Self Directed Roth IRA. Everything must be documented including expenses, loss and gain.
Sorry for the late response….definitely do your own due diligence 😉
Thank you for taking the time to create this video. It's very informative.
Thanks for watching Chad!
I am learning thanks for posting
Thanks for watching! I hope it helps 😉
I'm not the math guy and not motivated to watch or time the market, so I mainly buy VOO, VTI and other Vanguard ETFs (up on all after DCAing 2-3 years), some money market and HYSAs.
That's simple, and there are more holdings I've done well with, some of which distribute monthly for income (and others), E.g.- JEPQ, MAIN, CSWC, HTGC, EOS.
Otherwise, I award the winners of my portfolio, rotating through the high gainers. That entails only buying dividend payers which have shown to have had capital gains over years of DCA buying, so the more time that passes, the more gets contributed to the largest gainers. It's a way to avoid yield traps and overall loss, and not have to watch the market or spend much time on it (couple hours per week).
Sounds like you are in great shape! Thanks for sharing
My advice that if you want to retire at 62 or should retire at 62 and you are military retired, then you should retire at 62. And meet any other means you can see fit along the way.
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I love hearing a real world thought process! Thank you for doing this! ❤ I'm in the process of my financial advisor licensing and love this!!
Thank you Jules! I appreciate your watching and I am glad you found it useful 😉
Thanks for the video I don't have a Roth but I do have an IRA that I am not taking money out of so trying some covered calls in there. I am already retired at 60 but not taking anything from this IRA so hoping to continue growing it. And yes I know stocks move up and down. So the results may not be exactly the same, but I am learning and already see the potential. So again Thanks
I wouldn't do it in an taxable account because THEN you need a CPA or will have to Work to keep up with all your option trades for YEARS.
I do this in my personal Traditional IRA with high-yield dividend stocks that pay a monthly dividend (about 70% of my total investment) and the rest (30%) are for stock options. Since it's in a Traditional IRA originally funded with pre-tax money, it's gains (capital gains, dividends and option premiums) are not taxed until I take distributions out of the Traditional IRA account and then tax is applied on any money I take out at my present (& typically lower) tax rate in retirement since no tax was paid on those amounts before retirement. You get the pre-retirement pre-tax benefit of a reduction in your gross income (which lowers taxable income while working) and any gains in the account are not taxed until money (distributions) are taken out during retirement and then only the money taken out is taxed.
@@blockaderunner I also do dividend investing and options in a taxable account and it's basically just like "earning" more income at my typical tax rate for income from my employer. However, it is a bit more complicated since I also have to send in estimated quarterly taxes on any income I got from the dividend stock, option premiums and capital gains if my covered call options get called away at the strike price I selected. One thing I'll mention since I have a dividend stock that pays a "qualified dividend" every month and that is taxed at a much lower rate (for me, that's 15% vs my typical 24% federal tax rate), so that helps keep the taxed amount down a bit.
yep and you have to avoid MLPs that people promote@@napoleonmdusa8877
Thanks for watching! I hope it helps 😉
Good video Kevin. I'm from the Philippines living in the USA trying to maximize my retire because I started late
You can do it! Thanks for watching 😉
Wow that's backwards to my goal. I'm in the US trying to make enough money to retire to the Philippines. I couldn't image coming to the US to retire. It's crazy expensive.
A good question would be what service / source of information are you using to find high beta but stable company stocks to execute this strategy. I guess that if one get’s “stuck” with a stock while waiting to sell it or have it called away, the most ideal situation would be if it paid a dividend and you get paid to wait.
I don’t have a source, I just follow a certain industry and researched stocks that tied to it and found two that I have used for the last few years.
Covered calls sound awesome. Thanks for sharing.
Thanks for watching Dave! I am glad you found it useful 😉
The Roth IRA account needs to be at least five years old to avoid taxes on withdrawals.
Thanks! I will add that to the list 😉
LOVED THE MATH AND THE WAY YOU TEACH..
Thanks Superflu!
Hi kevin, thanks for the video , that looked like a lot of work you had to put into it. I heard you say you liked baguio and we're going to come back and visit. I live in baguio, I used to live three doors north of you for 5 months last summer. For me the weather's just too hot down there and the weather here is perfect . If you find yourself back up here I would love to buy you a beer and hear more about your covered call strategy.
Thanks for watching Colman! We are definitely coming back….🤔probably March.
Let me know. I also can invite you to play at John. Hay golf course which i'm a member
WOW, OK!
However with quarterly dividends you are able to do short puts and covered calls plus the dividend. So, they can often be treated as monthly dividends. This is a great training video and yes, it is too bad that there are so many haters.
Thanks for watching Steven! Not worried about the haters…some people won’t ever learn, and will be stuck working forever 😉
the power of compounding...only thing i would add because I've been burned before, make sure you invest in a company that is not cutting there dividends. I know this stock you are using is just an example but to my point, this stock, PSEC has been cutting its dividend since at least 2014. I do like your breakdown though, its all about compounding but get the right stock, that's the hard part...lol
Yes, ignore the stocks…the video is about dividend reinvesting and covered calls. You can make supplemental income on stock that you already own!😉
This is amazing. Thank you so much for all the work you put into the math and explanation.
I’m glad you found it helpful!!😃
Excellent
Thanks for watching Steve! I am glad that you found it useful 😉
Bravo 👏 job lot of work 🎉 wow 👌👏
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You can buy fractional shares with Fidelity I just bought fractional shares 2 days ago
Thanks for the update Wanda!
THANKS FOR YOUR ADVICE I AM FOR OTHER COUNTRY BUT Y VALUE YOUR CLASS I HAD 66 YEARS AND ONLY 4 YEARS IN USA . FOR ME IS IMPORTANT TO LOOK FOR GROW MY LITTLE INVEST FOR MY GRANDDAUGHTERS.
Great! I am glad you found it helpful
This is great. Thank you. Right on. I started investing in High yield Cash Flow Dividends almost 2 years ago. First year I was just over 10% and now over 12% ROI (Annual return on investment), just in second year. The math doesn’t lie. Thanks for the humble raw honesty and detail.
i am a day trader for 15 years. psec giving a very good dividend. the time i saw it yesterday i almost jumped in to it for this monday trade. i did my research about the company of their financials, and technical chart analysis, i am not buying this not even for day trading. goodluck to everyone everything is a gamble. i am 60 years old from canada and i am a filipino.
Compounding! The 8th Wonder of the World
The only problem is RISK. I like your attitude and sharing. Perhaps a diversified approach with other types of investments like Oil Stocks,
The highest Divi’s are in Peteobras PBR 17% & Ecopetrol EC 21%
Then there are Gold Royolaties like SANDSTORM - Ticker SAND and others..
Pick WHAT WORKS BEST FOR YOU!!! This video was just to let people know about the ROTH, dividend reinvesting, and selling covered calls😉
Thank you very much for teaching us Sir
That’s something what I was looking for god bless you
Thank you for watching Hian! Do your due diligence, and you will be rewarded 😉