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    0 Replies Latest reply on Oct 16, 2009 3:27 PM by dantbrown

    Retirement Income Tips - Sane Strategies For an Insane Marke

    dantbrown Newbie
      Jeremy Whaley
      TradeSmartU

      The great crash of '08 (as I like to call it) has left millions of American individuals and businesses strapped for cash. Worst yet it has left many who thought they were close to retirement scrounging to figure out what is next. A recent issue of consumer reports magazine quoted a couple who summed it up well when they said "we did what everyone said we're suppose to do. It worked for a long time but it's not working anymore."

      "It's not working anymore." Painful words that capture so clearly what so many feel. Since we were young the formula has been pretty clear: Save money, diversify investments, put money in mutual funds, in 40 years we will have enough to retire. Financial advisors have long offered comfort through their words "over a 20 year period the market always goes up". But what happens when the market goes down? And worst, what happens when the market goes down and it's time to pull out my money?

      Sadly this is the reality faced by so many Americans today. But there is a silver lining. Wealth creation does not have to be the way we have always been told. There are many ways to generate wealth, and plenty of it, in a relatively or very short period of time. You just have to know how to do it. Most people forget, or never realize at all, that Donald Trump lost his billions. Then just a few short years later he had it all back with plenty to spare. What is it "The Donald" knows that every day people do not? He knows what the rich do to create money. Now I'm going to share three keys to creating money in a crunch.

      1) Start Buying Income Producing Assets

      For too long people have focused on buying assets that sit in an account somewhere doing very little. An example of this would be bank CDs, ultra safe mutual funds etc. If you want to grow whatever wealth you have quickly it must be placed in assets that produce income. Some examples would be a small automated business like a laundry mat or a car wash. If that's too expensive consider buying some vending machines and placing them in good locations. 10 Gum ball machines placed in good locations should generate about $1000/month easy, passive income.

      2) Buy Real Estate Cheap

      Now that the Real Estate bubble has burst stashing some cash into a cheap property is a great way to create passive monthly cash flow. In many areas of the country there are more foreclosures available than there are buyers. Investors can pick up properties for half of their true value. It would be much better to park $100,000 in a decent little house you can rent than to let it sit in the bank doing nothing. Monthly rental on a property like this should yield $700-$1000/month passive cash flow.

      3) Change your stock market strategies

      Sure your stock portfolio may look down, but using the leverage of options you can literally rent your stock out using covered call options and make some nice monthly income (Usually about 10% of your stocks value each month). This will offset your losses while the market is down. In fact your current portfolio may already be able to provide a lifetime of retirement and you don't even know it! Check with your broker to ask how you can write some covered calls on the stocks in your portfolio to mitigate your losses.

      TradeSmartU.com is offering the LAST FREE webinar on the Foundations of Stocks and Options: November 10 at 9:30 pm eastern. If you are interested go to http://tradesmartu.com/nov2009/landing/landing_direct.html This is a $600 course for free. The course which teaches investing is ONLY available in the evenings. Hope to see you there!