The English-speaking world’s Baby Boomer generation finds itself in a vulnerable position today, especially in America. The majority of American Boomers in general are worried that they won’t have enough money to last through retirement. In fact, a third of this group plans to continue working well into retirement to keep the money coming in.
There is an intense, persistent stress that comes with the feeling that you don’t have the additional income you need. It hurts when you reach retirement and you can’t do the things you really want to do.
That’s the crucial context we intend to bring to our Ultimate Retirement Solution Event, which will be live-streamed from Phoenix. We are going to talk strategies for building portfolios that are stable and that generate income streams well into retirement.
These are the kinds of rules-based trading strategies that have produced returns of up to 20% year after year — for the past decade.
And we will walk you step-by-step through these strategies.
The Upcoming Generation of Retirees Face Unique Financial Pressures
First of all, if you are taking steps now to ensure your retirement funds are secure, congratulations. You are already positioning yourself for security that millions of people will miss out on.
Granted, many Boomers have saved no money whatsoever for retirement. For those of you who have built up a nest egg, you have a few investment strategies that can keep the money coming in, as well:
- You can focus on investing in safe, undervalued stocks to grow your nest egg via capital appreciation.
- You can focus on stocks that pay growing dividends so that your nest egg generates regular income.
- You can leverage a couple of simple options strategies to protect your downside and grow your cash flow.
We will touch on the first and second strategies more in an upcoming post. But if you’re curious to see what an income-generating safe stock looks like, three are listed below.
These were found by using a VectorVest strategy called Blue Chip Dividend Payers that returns blue-chip companies that pay a safe, growing dividend of at least 3%. In fact, the dividend payout on these stocks has grown year over year for a decade.
As of February 23, three of the top dividend payers are:
- Chevron Corp (CVX) — an integrated energy company paying a safe and growing 3.98% dividend
- People’s Bank (PBCT) — People’s United Financial, a savings and loan holding company paying a safe and growing 3.50% dividend
- Wisconsin Energy (WEC) — a diversified holding company in both the utility and non-utility energy segments paying a safe and growing 3.57% dividend
We have an indicator, YSG, that takes into account the yield, safety and growth rate of the dividends a stock pays out. With a click, you get instant analysis of over 4,000 dividend-paying stocks. This is very helpful in determining which are right for you.
It’s not hard to build a portfolio that safely and consistently generates income each month, but you need access to the right research tools.
Now, let’s switch gears to focus on strategy no. 3, which we will go in-depth on at our Phoenix event.
Options Strategies: A Sneak Peak Into What We Will Discuss
On Day 2, we will introduce the concept of covered calls. These let you buy or hold a stock while selling call options for that same security at a specified price and time period. This is a fantastic way to hedge on any investment, generate income and build an additional layer of safety into your portfolio.
Adam Milton at The Balance agrees that covered calls are important tools for investors seeking to shore up their retirement portfolios, and he has an excellent overview of how covered calls work.
We will show you how to execute these kinds of trades on Saturday morning.
That afternoon, we will get into a tactic known as the collar trade. For some useful background, Cathy O’Nan, VectorVest’s Manager of Internal Training, has an excellent presentation on collar trades that you can check out here.
Collar trades have proven excellent tools for protecting investors’ nest eggs. Private wealth advisor Javier I. A. Altimari, CFP, tells the story of one of the most famous collar trades of all time. This happened in the late ‘90s, when entrepreneur Mark Cuban had sold his stake in Broadcast.com to Yahoo! in exchange for 14.6 million Yahoo! shares, which were trading for $95 each at the time.
Cuban wanted to protect his money against the bubble dynamics tech stocks were experiencing at the time. So, he took out an equal number of put options (at $85) and call options (at $205) as a hedge against any risks. The options expired after three years. In the short term, Cuban’s move looked like a bad idea: Within about a year of his entering the position, Yahoo! was trading at $237. If it maintained that trajectory, Cuban would surely be kicking himself.
Instead, the dot-com bubble burst, and Yahoo! shares were trading for $13 when the put options expired. For little more than the commission he paid to his broker, Cuban secured most of the nearly $1.4 billion he made off of Broadcast.com and emerged from the dot-com crash relatively unscathed.
On Saturday afternoon, we will show you how to enter these kinds of positions so your nest egg is never at the mercy of market crashes.
Ultimate Retirement Solution Event Details
Our Ultimate Retirement Solution Event will take place the weekend of March 23–24, 2018. That’s a Friday and a Saturday, leaving you plenty of time to enjoy world-class dining and golf.
This will be a great weekend. If you are making plans now for your retirement, the guidance we will present in Phoenix will show you how to protect your nest egg and generate steady income.
We will host all sessions at the Phoenix Airport Marriott, which is conveniently accessible for both people coming by plane or by car (the hotel is easy to get to from I-10, and self-parking is free). We’ve negotiated a special rate of $159 per night for attendees for the nights of March 22 and March 23. Click here to book, but be quick because the deal is only good through March 7.
Remember: If you don’t yet have your ticket for the Ultimate Retirement Solution event, you can save $100 by registering before March 9. What’s more, you can bring a friend or family member for free.
And if you cannot make it to Arizona in March, we’ll have a livestream of the event so you won’t miss out on any vital information.
Images by: halfpoint/©123RF Stock Photo, sergign/©123RF Stock Photo