My Radical Plan to Fully Fund My Retirement FOREVER!

In this video we are talking about my plan to fully fund your retirement every year forever. This plan is possible by selling options, specifically covered calls and cash-secured puts. If you sell options you can easily generate significant income every month. I will be selling options on the Russell 2000 ETF (IWM).

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The Funds purchase call option contracts on the Underlying Securities generally having one-month to six-month terms and strike prices equal to the then-current price of the Underlying Securities at the time of the purchases to provide the Funds indirect exposure to the upside price returns of the Underlying Securities. As a buyer of call option contracts, each Fund pays a premium to the seller of the options contracts to obtain the right to participate in the price returns of the Underlying Security beyond the strike price of the purchased call option contract at expiration (or earlier, if the Fund closes the option contract prior to expiration).

Each Fund simultaneously sells put option contracts on its Underlying Security to help pay the premium of the purchased call option contracts on the Underlying Security. Each Fund sells put option contracts that also generally have one-month to six-month terms and strike prices equal to the then-current price of the Underlying Security at the time of the sales to provide the Fund exposure to the downside price returns of the Underlying Security. As a seller of a put option contract, each Fund receives a premium from the buyer of the option contract in exchange for the Fund’s obligation, if exercised, to purchase the Underlying Security at the strike price if the buyer exercises the option contract.

This communication/content is for informational purposes only and is not intended as personalized investment advice, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon for purposes of transacting in securities or other investment vehicles.

#coveredcalls #sellingoptions #retirement

[DepthWish]

This fails when you get assigned shares and then IWM dumps and you can't sell calls above your cost basis. It's the Achilles heel of the wheel strategy.

[philippagliaro]

You remind me when Im on a hot streak in Las Vegas- Its all good till it isn't ! I do love your enthusiasm

[ChannelSyxx]

I appreciate your method of wheeling a small portion of a portfolio to generate income. I’m wheeling less than 20% of my portfolio in IWM to fund my retirement.

[frozenyetimug]

I'm a longtime fan and subscriber. Thanks again for this channel. I'm looking forward to seeing your progress on this idea in the coming months.

[arif]

Joe,
Please, please, please back test this strategy before committing any money to it. You should know your max down draws/ wins/losses etc—-it’s a simple enough strategy to backtest.

[rumoaomilhao]

Man, your content excels! Cheers from Brazil.

[buyerclub]

while I frequently do use a wheel strategy against SPY, you will run out of capital if you are forcing yourself to make trades. Sometimes patience is critical. I would not focus your entire income needs based on this. But it can incremental help on an annuual basis. Remember once you have sold the option volitiltity is not you friend. You want the option to expire worthless. And enven a daily in the money one can cost if you get assigned.

[djayjp]

Joe, once you try credit spreads, iron condors, and strangles, you'll never go back to this stuff again.

[andreaamplified]

I am pumping up my high yield dividend stocks in my individual account that is covering my Roth IRA reoccurring contributions. The leftover amount is folded back into the high yield, expanded to slower steady growth stocks, or increasing reoccurring Roth IRA contributions.

[sidBass]

Great video! I think one thing you missed and could have touched on, is under some market conditions, such as a downtrend, you can choose to just sit it out in cash until things look better. You’ll lose that daily premium but otherwise remain whole while your cash earns a bit of interest.

[kimbiwasmith]

I’m not sure a lot of folks paid close attention, based on the comments. I run a single contract on the Q’s and will close out the year at about 35% profit margin on capital. I’ve done this thru all of the big down moves this year. It works if you know how to manage your trades correctly, stick to you objective, which is cash generation, and no when to cut your losses on down days.

[wesleypipelayer]

Side note…. There is an option in fidelity settings where you can just hide your account numbers. That way you won’t have to worry about blurring them out

[tpsu]

How about selling TNA options. Using that profit to buy nvdy and use that money to buy IWN?

[sidkhandai]

An eye opening strategy 😊. I wonder what would be the downsides if we did the same wheel strategy with weekly expiries of TNA, the 3x leveraged ETF of IWM, which would need a capital of around $12, 000 to get the same returns as with daily expiries of IWM

[jetflighter]

Hi Joe. If you sell options directly on the index instead of on the ETF, you get section 1256 tax treatment, which means 60% of the gains will be treated as long term capital gains on your tax return. Potentially huge tax savings there.

[ryaninman]

Thanks look forward to new vid each time.. 8000 Roth, never thought you was over 50.

[tubetop]

Your method works when price is going up or sideways. Please show the scenario when price drops for weeks/months then goes back up.

I see one can realize losses that will erode your account. For this reason, i dont recommend average investors to try this strategy

[raytailor]

Is this not the same strategy you used to finance your summer trip?

[kikas]

Hey Joe.

Wouldn’t you get the same results if you just sell puts and don’t get assigned? If ITM close for loss (same as you would in case you owned shares and sold below cost basis) and sell another one on next day?

This way you don’t need too much capital as you can use a margin account, thanks and keep doing those kind of videos please :)

[michaelfleisher]

I think that ignoring total return is not optimal. The Wheel strategy the way you deploy it can easily loose money when the market is not cooperating.
Investing in the market, coupled with a farther (out of the money) options selling is probably better. You can still divert the options premiums to retirement and do the same with some of the growth you capture if any. The bottom line of any strategy should focus on - Do I end up richer and how turbulent is the path? In other words, try to maximize total return and do so with less risk. My 2 cents :)