80% equities 20% cash. I plan to take advantage of the s&p 500 as leading indicators predict above 10% rise by this year, my only issue is how to properly allocate a large stock/bond portfolio for substantial gains at minimum risk.
@donna_martins2 ай бұрын
Keeping some gold is usually a wise decision. You would be better off keeping away from equities for a bit or, even better, seeking advice from an expert given the current market conditions and everything that is at risk with the current economy.
@Walter_hill_2 ай бұрын
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.
@berkrix43122 ай бұрын
Mind if I ask you to recommend this particular advisor you using their service?
@Walter_hill_2 ай бұрын
Vivian Jean Wilhelm is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
@berkrix43122 ай бұрын
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
@LiquidityOcelot8 күн бұрын
I am a big ETFs guy. It has worked well for me. I still have 5 years or so until retirement and I sleep well at night.
@ShelleyfromCali8 күн бұрын
To be kinda blunt I'm giving up on investing in stocks.... I put between 4000 to 5000 a month and it's nothing but down down down.... Sooooo frustrating and I only invest in boring companies
@henrymitchell97178 күн бұрын
I hope that's not the case you should cost average into index funds for the long term at best if you're struggling with personal investing or sometimes it's even better to just hire a mutual fund manager. There's no shame over 90% of people people will underperform the index over the longer term the sp500 over a 20 year period has never lost a gain. Patience and steadiness is better than most KZbinrs stock recommendation.
@LiquidityOcelot8 күн бұрын
Great advice here. Keep it simple, buy things you understand, take some risk but don’t try to shoot the lights out. Diversification is KEY! I use a CFA and it's a great hands off way to approach it, I conservatively follow *Lina Diniekiene's* recommendations and market entry and exit points, and tbh this makes it possible for me. Started in '22 but with a lot of financial strength and in-depth research I did hit that coveted 100K and recently the 1m mark :)
@MHousley8 күн бұрын
Congratulations! Thanks for reminding me to stop being Stupid. I've been buying stocks like a drunken sailor😂and not much too show for it🥲
@LiquidityOcelot8 күн бұрын
Haha! I feel great about 'the market' as long as the companies (or ETFs) we invest in have strong earning trends. Over many decades, the prices will follow net earnings within about 0.5%. Nobody, can explain all the short-term noise so as an investor you should be galvanized to tune out the static. Build a nice system based on your risk tolerance and goals, stay the course and win this simple game in the long run.
@TheRealRaggedyAndy3 ай бұрын
Two closed end funds, CSQ and CCD, are also Calamos. Fun fact, the founder John P. Calamos, Sr. is a combat veteran. He was a Forward Air Controller in Vietnam (boots on ground) calling in airstrikes.
@wealthadventures3 ай бұрын
Interesting! Thanks for sharing.
@douglash.88622 ай бұрын
I HAVE been in, CSQ for the Last, 3 Years ( I'm a Swing Trader that, LIKES Dividends, while waiting for,.. "Good",.. Cap Gains ! CSQ,.. "Gets IT, Done" for Me !
@danstevens643 ай бұрын
"Take that rubber out of your wallet and throw it away, you weren't going to use it anyway" And I took that personally.
@wealthadventures3 ай бұрын
But am I wrong?
@tonynes35772 ай бұрын
FUNNY.....Have fun with the rubber.
@blaquopaque2 ай бұрын
100% agreed, my so called target retirement fund in 401k had absolutely terrible return compared to sp500. I moved all to sp500 but biggest regret of my life I didn't do it sooner..What else is best way for me to invest 200k for stable cashflow?
@Curbalnk2 ай бұрын
I would avoid index funds, mutual funds, and specific stocks for the time being. Right now, the best option is a fixed income of 5%.
@greekbarrios2 ай бұрын
you need a certified financial planner straight up! personally, I invest in ETF's and also love investing in individual stocks. yes it’s riskier but am comfortable in my financial environment
@kansasmile2 ай бұрын
You're right, I and a few Neighbors in Bel Air Area work with an advisor who prefers we DCA across other prospective sectors. Instead of a lump sum purchase, Following this, my portfolio grew 35% in the last quarter.
@kashkat9872 ай бұрын
@kansasmile I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
@kashkat9872 ай бұрын
Wow, her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info
@James-1003 ай бұрын
Appreciate the “cash is not trash” candor at the end.
@wealthadventures3 ай бұрын
It certainly is not trash... but might be time to add some bond duration. 5 year?
@jdedad3 ай бұрын
Pacer funds has the same thing comes in three flavors conservative moderate flex difference is the cap and downside % … I think you you have a ton of money and don’t want to loose it and yield better than bonds
@dennis63253 ай бұрын
In my youth, I used to run a hedged portfolio similar to how these funds operate. Over the long run you, after fees, you end up making about the same as you would in treasury bonds.
@wealthadventures3 ай бұрын
I could see it playing out like that.
@skipkapur13 ай бұрын
True. Insurance companies have been providing such funds for quite a while. If you take risk out, you don't earn the risk premium. It's that simple.
@msingh14032 ай бұрын
Great explanation of this product. We could also do this on more aggressive stocks since the downside is fully protected the upside will be a little higher because of higher implied volatility for some aggressive stocks.
@wealthadventures2 ай бұрын
Perhaps. The put will be more expensive as well.
@RaadYacu3 ай бұрын
kind of I wished I used protection before so this is interesting to consider, especially if it is 100% pregnancy proof
@wealthadventures3 ай бұрын
A tale as old as time...
@InfoRanker3 ай бұрын
I want my $2.00 !!! Love that movie
@wealthadventures3 ай бұрын
Good movie!
@swright56903 ай бұрын
Quoted it today at work.
@SteveJones-ul9ex2 ай бұрын
Another great video - thanks sir!
@SummitMan1653 ай бұрын
Good report with a fun twist ! 👌👌
@wealthadventures3 ай бұрын
Thanks!
@TotallyRegWhatelse2 ай бұрын
So far only had Calamos' CEF *CHY* (bonds, BB and lower, annual dividend yield ~11%) on my watch list.
@daveschmarder-19503 ай бұрын
This sounds familiar to some of the buffered ETFs that came out a couple years ago. That is a capped upside and a buffered downside for a period of time. My question is with one of those, someone could buy when the period starts. Then if the ETF reaches its top before buffering, I thought it would then be smart to sell then and wait for the next ETF to come along. If I thought of this, it has to be too simple, and I am missing something. I've never owned this kind of investment and I don't think I would ever do it. The ER on these are also 0.69%.
@wealthadventures3 ай бұрын
As the index climbs, the return for anyone buying the ETF reduces and downside develops. Problem is you need to find a buyer for a product with a lower return and downside. Not so attractive!
@daveschmarder-19503 ай бұрын
@@wealthadventures Thanks. I knew there was something I was missing. I'll just stick with my regular ETFs and some mutual funds.
@brendanquinn68943 ай бұрын
I think they have the hedge too close to the money. I like to sell the calls that pays for the hedge at a rate of about 3 to 1 in credit. (So if it costs me $100 for the hedge I get paid $300 for the short call). That way you can aggressively lower the cost of entry. You mentioned it Dave. Its the risk/reward ratio. You should do it 3 to 1 in my opinion.
@msingh14032 ай бұрын
I like this hedging strategy, especially if you’re trying to protect your portfolio from big downside moves
@alanbaker835421 күн бұрын
Well so much for 100% downside protection. Down 5% today
@pware96433 ай бұрын
Buffer ETF’s are also available like BMAY BJUN etc that protect the first 9%down and gives you first 17% up. Structured like Fixed Index Annuities but NO long term commitments and the cap doesn’t change arbitrary to whims of the insurance company. In a flat market you lose the.69% fee plus the 1.29% dividend you would have received in spy. This would be a place to put some of your bond portfolio money.
@wealthadventures3 ай бұрын
Sounds about right.
@dr_brewer3 ай бұрын
Do you have any opinions on THTA? It seems like an interesting income play that has performed pretty well with very low delta credit spreads… 13% yield on a stable share price is pretty nice.
@wealthadventures3 ай бұрын
That is a new one to me. I will check it out.
@harsharao35553 ай бұрын
Can you do one on IVVW and IWMW. Some of the lowest expense ratios for buywrite etf, also backed by ishares. Would love if you could contrast this with JEPI, ISPY AND.SPYI. Thanks Dave.
@wealthadventures3 ай бұрын
Yes. I've been looking as ISPY but will look at IVVW and IWMW as well. Thanks!
@TreCayUltimateLife3 ай бұрын
I bought 4 shares of CPSM the moment it was released. Cool.
@wealthadventures3 ай бұрын
High Roller!
@bigk82948 күн бұрын
It does not seem to working can you update?
@anepartners96033 ай бұрын
Good morning, and thank you. Question, If most money managers cannot beat the market, why should we as individuals be in the market if we are not better than the professionals..
@wealthadventures3 ай бұрын
Most money managers don't beat the market. That is why we should buy the market - VOO, IVV or SPLG and chill.
@StobbyW3 ай бұрын
Based on some very rough Math if you’d invested 100k in 2000 in SPY and 100k in this you may well have been better off today (I think around 20k) with this vehicle, without any of the pain. Think I might model it out properly.
@wealthadventures3 ай бұрын
Interesting! Let me know if you do.
@ralphpal3 ай бұрын
That is only if you got in from day one Any later than day one the protection goes down and its only good for one year
@wealthadventures3 ай бұрын
Yes!
@solotrucker3 ай бұрын
I have 2 for you XDTE & QDTE. Would love to get your thought?
@wealthadventures3 ай бұрын
I will take a look!
@jigneshsoni92632 ай бұрын
Very interesting video. how do you invest your portfolio? What is your expected average ROI? Do you share these details somewhere?
@ezcarlos13 ай бұрын
Hi Dave In your example there is a $35k difference between the put they are buying and the otm call they are selling. How do they make up that difference so as to guarantee 100 pct capital protection? Cash position? Doesn't compute
@wealthadventures3 ай бұрын
True! I still need to dig through the prospectus but believe this is from cash. These products pop up when interest rates rise and it makes more sense to use options versus buying stocks.
@ezcarlos13 ай бұрын
Great, thanks!
@tessjones59873 ай бұрын
THANK YOU.
@wealthadventures3 ай бұрын
You're welcome!
@stephenbanavage32933 ай бұрын
looks a sound strategy however I didn't get which strike deep in the money did they purchase
@BarryFence3 ай бұрын
I think he said $250 which would be a 99% delta if you used SPY LEAPS as of May 13th. I don't know anything about FLEX options.
@DerivCapital3 ай бұрын
So they have a Synthetic Covered Call SPREAD to capture ALOT more up side than a slightly otm or atm covered call would still given some downside protection
@WoJackHorseman243 ай бұрын
Can they do this same strategy, but monthly instead of annually? They can pay any upside as a distribution
@wealthadventures3 ай бұрын
They could. Probably already in the works the way these products are hitting the market.
@shareitwillya7632 ай бұрын
I think I understand the 100% downside protection, but how long do you need to hold the share(s) to make the gain? Is it kinda like a 12-month CD where you get the stated return if you hold for 12 months but get penalties for early cash out?
@skipkapur13 ай бұрын
Insurance companies have been providing such funds for quite a while. If you take risk out, you don't earn the risk premium. It's that simple. These ETFs will not perform well.
@wealthadventures3 ай бұрын
True. We get paid to take the risk
@Nicogambino23 ай бұрын
Do they pay monthly dividends
@wealthadventures3 ай бұрын
Nope.
@J_International3 ай бұрын
How much does the $SPY need to rise for you to achieve your full 9%+ capped return? If $SPY was particularly bullish over the year, could you achieve the capped return more quickly and not need to wait the full year? The ETF started at 25 dollars. Is it guaranteed to never go below 25? Is that how the protection works?
@wealthadventures3 ай бұрын
SPY should drive the price and 25 should be the floor (or close). You may get close to the 9% return early but it would be hard to sell for a 9% gain until the options get to expiry.
@tonynes35773 ай бұрын
No dividends? So if someone doesn't understand options and doesn't want to, like myself, this might be something to buy.
@wealthadventures3 ай бұрын
Maybe... Could get them back in the market.
@TheComedyChannel-oo5lk3 ай бұрын
Thank you. I have a question about the downside risk, if the stock drops by (say) 3% to 510 in your example, before the end of the year, would the price drop by 3%? In other words, do I need to keep it for a year to have the downside protection? Or it NEVER falls below the purchase price within the year and can only go up or stay the same throughout the year? I hope you see what I mean. Thank you very much!
@wealthadventures3 ай бұрын
It should stay between 0% and about 9.5% throughout the year. If it drops down towards 510 at expiration, you will have a small return overall since it is above 502... and near expiration it should be quite close to real price action if it is still between the 2 strikes of 502 and 552. Does that answer your question?
@TheComedyChannel-oo5lk3 ай бұрын
@@wealthadventures Thank you very much for your response. Yes, I think it answers my question. And thank you for your great channel! P.S. Please note there is spamming below, in the responses to davidbennet1
@TheComedyChannel-oo5lk3 ай бұрын
@@wealthadventures Thank you very much for taking the time to reply. I am still a bit confused as to why one has to buy it on the first day of the month. I guess I am not very smart. Thank you very much for your channel! 👍
@fusionev03 ай бұрын
@TheComedyChannel-oo5lk basically to provide the 0% loss they only cover the cost of the share at the start. If it starts at $25 but you later bought it at $26 . If market goes bad after the 1 year you will receive 25 per share. So you might loose a $1
@MsLittleChristine2 ай бұрын
@@fusionev0 Thank you very much. It's all clear now!
@joekuhnlovesretirement2 ай бұрын
Probably don’t include dividends
@wealthadventures2 ай бұрын
You don't own anything with this so no divs.
@OffGridandOutdoors3 ай бұрын
So if you buy now 28 days later (from the start in early May), I will get what, less protection, more downside risk? Like buying from a gas station bathroom vs the corner drug store?
@wealthadventures3 ай бұрын
New one should be released on 6/1. If the S&P is up since the release, you will not want to buy it. You will have downside and less upside.
@OffGridandOutdoors3 ай бұрын
@@wealthadventures yeah I kicked it around but after this video I definitely not going down that road. Thanks for the video
@ChipGatt-wi5uw3 ай бұрын
The problem with these are that they are a snapshot in time. You can do great for eleven and a half months and then the market corrects and you get nothing. I had an advisor buy some principal protected notes, which is what this is, and they sucked. This is the same thing hiding as an ETF
@XX-do7nq3 ай бұрын
I don’t understand it. Dose it pay dividends?
@wealthadventures3 ай бұрын
Yes. That would be a concern.
@edcastillo44563 ай бұрын
Indexed annuity without the annuity. Is it 100% participation on the cap?
@wealthadventures3 ай бұрын
Full gain realized at the sold call strike.
@ivantsanov36503 ай бұрын
What happens if Mr Market stays flat 🤔 ?
@wealthadventures3 ай бұрын
You would show a small loss from the fee. In that case, better off in cash.
@ivantsanov36503 ай бұрын
@wealthadventures With ZIVB, you can do better than that.
@tacocruiser42383 ай бұрын
Or you can just buy put options.
@wealthadventures3 ай бұрын
True but that can be expensive.
@johnpinard32123 ай бұрын
Sounds like an annuity
@wealthadventures3 ай бұрын
In some ways. No guarantee of any return however.
@1timby3 ай бұрын
A few questions. How is this different than the wheel strategy or Poor Man's?
@wealthadventures3 ай бұрын
100% downside protection from the purchased PUT would be the main difference.
@1timby3 ай бұрын
@@wealthadventures so, you don't have to pay the fees if the fund declines? If you do then you will lose money. Just saying.
@dennykeaton97013 ай бұрын
@@wealthadventures A very major difference
@HedgeFundOfOne3 ай бұрын
Seems like the promises of annuities. It's a synthetic collar. I have often thought that the insurance companies that provide annuities use this approach to be able to make their guarantees.
@wealthadventures3 ай бұрын
Sounds about right.
@jiti50342 ай бұрын
Is it 100% downside? and from what price? original price or the price you purchase at?
@wealthadventures2 ай бұрын
Downside is established day 1. Buying after day 1 and you could incur losses depending on the price.
@jiti50342 ай бұрын
@@wealthadventures Yes I get that but after day 1 at what rate this ETF moves with the SPY underlying? within the cap , if SPY drops 20% black swan , the ETF can't go down that much correct? because there is a built in hedge
@wealthadventures2 ай бұрын
@@jiti5034 That is true. It is limited by the established options.
@jiti50342 ай бұрын
@@wealthadventures Sorry don't understand what you mean by "Established options" you mean the Flex but OTC options? or exchange traded options? But exchange traded options on SPY are americiun style , no good for this strategy and my fundamental question is at what rate the fund move upwards when SPY moves upwards ? no body seems to have a clear explanation if SPY move up 5% ( still within cap of say 9%) will the ETF move by 5%
@TotallyRegWhatelse2 ай бұрын
@@jiti5034 FLEX options, *European* style (see the prospectus on their web site).
@wyy72743 ай бұрын
I'm surprise that they did not use the ticker IUL (Indexed Universal Life Insurance (IUL)). It's copy the IUL without the insurance part. If I want something like this ETF, why not get IUL?!
@RonnieM903 ай бұрын
This sounds similar to HEQT.
@wealthadventures3 ай бұрын
In some ways. HEQT is not fully protected but also offers more upside.
@envisionjd3 ай бұрын
Dave, I don't have a rubber in my wallet... lol
@wealthadventures3 ай бұрын
Ha! That's what they all say.
@fialee8ca1323 ай бұрын
No glove, no love.
@johnkelly30533 ай бұрын
So is it kind of a mix between a poor man´s covered call and a collar?