Reviewing Finances : Planning to move back in Apr 2016

[techynt]

Both are valid points. So my expected requirement is 3-4%. So let's say portfolio crashes by 20%, even then as long as I can get 3-4% of 600K-650K, I should be okay. My portfolio in bull market has 20-30% cash, and I will utilizing that to grow my portfolio if market crashes.

As about selling options, I have done fairly well, but I religiously follow Motley Fool Options services for writing options.

Tampa2blore: just checking to see how your option positions are holding up?

Looking at the low interest conditions, seems like retirement is a distant dream to most of us, what are your thoughts on this?

[pqr2012]

Trading is the toughest job in the world. Keep that in mind.


Almost all my working life I have spend with traders. All were
top quant traders with min MS and most post docs the very best from
all over the world.


Success rate was not even 30-40%.


They got help from the best analysts and research staff.


So how can you be a successful trader with almost zero resources when
only 30% traders in hedge funds succeed unless off course you are
a super genius with IQ of Einstein.


Keep one simple thing in mind. If you are really a great trader
go for a i/v with a wall street firm. If you are really good
they will surely recruit you. You need to learn from the pro
and not rely on some stupid software from the fools.


Dont loose your hard earned money. Put it in a
good MF or better a basket of MFs.


Dont play with fire. Surely you will get burned big time.


Also options are basically for HNI or institutions. Do you
fall in that bucket?


Be a sensible smart value investor if you want to make money in
long term. Make sure you have a very high margin of safety.

If I am not wrong the US markets will be very tough to make money for
at least next 5 yrs. I wont be surprised if it starts resembling
Japan. Be very very very careful.


Good luck.

[swathisharan]

It is not that flexible to change the place because the culture and climate in us is entirely different from India. But one or other day everyone decide to settle back in their home towns. so it is better to come back after your enough earning. I appreciate your idea.

[techynt]

Are you sure about 5 years??

Seems like you have no idea about options?

Hedge funds have a different goal(always beat s&p by significant margin else who will pay 2+20).....a small investor like me is only looking for inflation+2% return.

Take it easy on the italicised bolds...it appears like you are in panic.

Trading is the toughest job in the world. Keep that in mind.


Almost all my working life I have spend with traders. All were
top quant traders with min MS and most post docs the very best from
all over the world.


Success rate was not even 30-40%.


They got help from the best analysts and research staff.


So how can you be a successful trader with almost zero resources when
only 30% traders in hedge funds succeed unless off course you are
a super genius with IQ of Einstein.


Keep one simple thing in mind. If you are really a great trader
go for a i/v with a wall street firm. If you are really good
they will surely recruit you. You need to learn from the pro
and not rely on some stupid software from the fools.


Dont loose your hard earned money. Put it in a
good MF or better a basket of MFs.


Dont play with fire. Surely you will get burned big time.


Also options are basically for HNI or institutions. Do you
fall in that bucket?


Be a sensible smart value investor if you want to make money in
long term. Make sure you have a very high margin of safety.

If I am not wrong the US markets will be very tough to make money for
at least next 5 yrs. I wont be surprised if it starts resembling
Japan. Be very very very careful.


Good luck.

[pqr2012]

Contrary to popular belief not even 20% hedge fund will beat the index in long run.
Still HNI has too much money and they have no place to park other
than the hedge funds.
I have primarily used options as hedging instrument during my
work life.

For my personal portfolio I would never go for options. It is too costly.
I will make way more in equities and maybe select commodities if I am
lucky.

I am in no panic infact these are the best time for investment.

I am getting stuff at rock bottom prices. I am getting div yld in some cases
north of 7%. For me the lower the market goes the better it is. Sector rotation
can be very effective and very profitable.

I am confident I will clock return of at least 40 % plus this year.

Indian market will give the best return by yr end.

My target is 15% CAGR. I am running 18% CAGR so I am very very happy as of now.

Best part is I am achieving a much more balanced portfolio. I need some more
pharma & hospi care. Its too costly some day hopefully.

[techynt]

Contrary to popular belief not even 20% hedge fund will beat the index in long run.
Still HNI has too much money and they have no place to park other
than the hedge funds.
I have primarily used options as hedging instrument during my
work life.

For my personal portfolio I would never go for options. It is too costly.
I will make way more in equities and maybe select commodities if I am
lucky.

I am in no panic infact these are the best time for investment.

I am getting stuff at rock bottom prices. I am getting div yld in some cases
north of 7%. For me the lower the market goes the better it is. Sector rotation
can be very effective and very profitable.

I am confident I will clock return of at least 40 % plus this year.

Indian market will give the best return by yr end.

My target is 15% CAGR. I am running 18% CAGR so I am very very happy as of now.

Best part is I am achieving a much more balanced portfolio. I need some more
pharma & hospi care. Its too costly some day hopefully.

Have you heard about selling options when they are expensive?

Any who we need to leave this thread alone and not hijack it for our pi$$ing contest. Good luck to you and everyone, we are all invincibles...

[pqr2012]

From whatever little I know I get good returns.

If I remember correctly about 6 - 7 months back you have send me
a message to discuss my strategies. Do you remember?

You have so much knowledge what made you send that message I wonder.

anyway as you say not a good idea to hijack thread so peace.

[India2014]

Whats this motley fool options.. Any insight please

[gsubbara]

The recommended safe portfolio withdrawal rate is 4% but this for somebody retiring in the 60's and also with social security/medicare backup. For early retirement the safe withdrawal rate is between 2-3% .If i were you i would assume a 2% withdrawal rate and arrange my lifestyle accordingly

[tampa2blore]

Tampa2blore: just checking to see how your option positions are holding up?

Looking at the low interest conditions, seems like retirement is a distant dream to most of us, what are your thoughts on this?

Just like everyone else, my portfolio has taken a hit. Few things have helped me:

- 10% of my portfolio was hedged.
- 10% of my portfolio was short
- 10+% of my portfolio was in cash
- I always assume my portfolio value as 20% less than the current market value, assuming 20% of it can be wiped away on any given day.
- No change in my plans :)

Hope this helps.