Knowing very little about the market. Back years ago I wish I would have known what SPY was. It is the S&P500 etf. Basically buying a small piece of each company in the Standards and Poors 500. Basically takes some of the risk away versus owning and individual stock. It is not the quickest way to make money but if I would have been buying SPY only all these years I could have retired very nicely by now.
Yes indeed... I suggest that to ANYONE that is in a 401K/IRA that has the ability to buy stock/ETF. Forget mutual funds and by the SPY. Want tech, buy QQQ; Small cap buy IWM; bonds TLT. Less grotesque fees and MOST funds out there don't beat these benchmarks if they are compared. Want to juice the returns... sell covered calls above the current price of the etf if you have 100 shares. If you do it right, it can boost returns 5-12% per year. Inside an IRA there is no taxable event so no worries on accounting/tax returns.
The amazing thing... This retirement stuff of a persons wealth is usually #1 or #2 on total asset value held. YET, people don't bother to educate themselves about it and rely on percentage sucking, poorer returns than the index financial advisors and managers. Crazy.
I know I mentioned Boeing at 190, it's 130 today. They aren't going out of business IMO... too many contracts with Govt, etc.
If you can sell puts, which is what Buffet does but never talks about it.... You can sell a 4/17/2020 100 put on Boeing for ~$1100 If boeing gets below $100 you might get the stock, if not, you collect $1100. If it doesn't get below $89, you are still better than breakeven. Another way to JUICE returns in a portfolio. There are other things you can do if Boeing drops below $100 to repair a potentially broken trade if you don't want the stock.
Never short and hold overnight if losses like TSLA are a concern and stops during the day if in the sandbox. Yes options are a play, very expensive but a play. Had a friend bought 400 calls right before blast off... needless to say she made a cool 3 million on the trade.
