One of the biggest benefits of selling options is it gives you the ability fast track to retirement through higher income streams. When paired with dividends and social security you can retire sooner than expected with less money. In the associated video, I share how I pair these multiple cash flows with a budget that shows you how you can better prepare for retirement.
Now if you are young and retirement is a long-off dream you can also benefit from this video. Using these strategies, you can reach financial independence and have your money work for you vs. you work for your money.
By selling options you can improve your returns and shorten the time required to retire. A six percent yearly increase in your returns can more than double how quickly your wealth increases. Using the rule of seventy-two if you increase your return from 6% to 12% it would take your wealth six years to double vs twelve years.
I share my actual budget and how recent inflation has impacted it. Since the recording of the video, I have increased several categories again. I have found that food and services have increased quite a bit recently. My haircut and eating out have gone up. The days of a $5 lunch are long gone. The only place I find I can get crazy low prices for lunch or dinner is the Costco food counter. Somehow, they still have the drink and a hot dog deal for $1.50.
I also discussed my favorite 4% Rule Calculator. You can find it here. You can easily enter different parameters into the calculator and quickly see a graphical representation of your retirement. I have used the calculator to help me determine if I can retire and maintain my standard of living.
The media constantly tries to scare people into believing that they cannot retire. They constantly talk about how you need millions and that you cannot retire. They find stories of how Americans will live forever and spend more as they age. By doing my own research I have learned this is not true. You do not need as much as they say, and you typically spend less as you age. Now with selling options you need even less.
I have been on a journey to learn the right way to trade stock options. Along the way, I have decided to share with others both my successes and failures. My hope is that others can learn and shorten their journey to learn how to incorporate one of the best ways to make passive income.
Thanks for joining me on my journey!
Uncle Jim