OK then, we’re off!

I’m not sure how things will work with Wall Street Survivor yet, that will be the first alert we send out! Meanwhile, keep in mind that this is a virtual portfolio and your personal investment advisor should be consulted etc. etc. I do NOT intend to BUYBUYBUY at the bell on Monday. If these are good positions then we are in no hurry as this portfolio is not about bargain hunting but about selecting high–yield positions we feel have little downside risk.

Let’s keep in mind the investing premise is we had $600,000 that is generating 6% ($3,000 per month) and we move $100,000 into this riskier mix. That means we will now have $500,000 generating 6% ($2,500 per month) and, if we can hit our goal of $2,500 per month on this $100,000 – the net montly income jumps 66% to $5,000. Risking 20% to make 66% more is a no-brainer when you are young but, when you are retired you need to factor in the difficulty or IMPOSSIBILITY of replacing your losses.

So we are going to play this portfolio like retired people, not like traders and we will be quicker to take profits and slower to increase risk than we were in the last $100KP but also, we will be trying to keep the overall portflio as “low-touch” as possible, sticking to simple strategies that can be followed by the average investor. If you think this doesn’t apply to you, you are wrong. Everyone gets old, stops earning money and needs to plan for a good 20 years of retirement at some point. I don’t care if you still run your company at 75, by 85 you will still likely be put out to pasture and will have to look at your financail position and say to yourself “what next?

Wall Street Survivor is giving us an account with a $100,000 opening balance at standard 50% broker margins and $10 per transaction fees – nothing out of the ordinary other than you can’t invest more than 25% of your porfolio in a single stock but that’s not much of an issue for us as it’s against our usual strategy anyway. Since we want to add at least $2,500 EVERY month, our main goal is always going to be to make sure we are set up for that by options expiration. It does not do us a lot of…
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