Option Investing: How To Invest For Retirement

Option Investing for Retirement

Here is a pretty good video of a segment done by Jim Cramer in which he talks about what to invest in inside your retirement accounts.

If you are into buying and selling options, now it is possible to sell options inside your IRA and many people do. I do not recommend it for the most part. Why?

Because it is still more risky than just owning a bunch of boring dividend paying stocks. If you are an OptionGenius member you can see how I invest my own funds and the allocation. But in my retirement accounts, I am mainly invested in stocks. I do sell covered calls and sometimes some puts, and the occasional credit spread/condor/ or butterfly. But those are the exception.

Option Investing Reasons

I use my normal trading accounts for the bulk of my option selling trades.  Several reasons.

1. I like to take the gains out to live on and enjoy. Can’t take your profits out of an IRA and I want to enjoy my gains now.

2. The gains can be offset by any losses you may be carrying on your income tax.

3. You could use portfolio margin if you wanted to lever up and go for bigger % gains.

4. I don’t want to wait for some government mandated age before I retire. I want to do it much sooner and I cannot do that if my money is tied up and I cannot touch it.

Just some food for thought. Go checkout our previous blog posts for more updates and content on options trading basics. Also, if you want to receive stellar option trading education and training, here’s our product and training section.

5 Comments

  1. Jay Marx on October 7, 2011 at 6:31 pm

    You might investigate a strategy I came across: If you are trading in your own company, the company can give you a 401k on its(your) terms!(within the law) Look up Richard Geller of Financial Success Inst. (for a paid webinar)free intro. Also Trader tax like Green Trader Tax and Traders Accounting can probably help.(guess, not done)
    Another limit in IRAs I learned the hard way: Foreign taxes! I was looking for hi-dividend stox and found NOK (before the drop) bot some for 8% div. and THEN found (on my STATEMENT) that $25. tax was taken out in Norway. 1040 writeoff IRA-no!And no mention on Yahoo Fi, Google Fi,or Morningstar – gotta learn the hard way!

  2. eliseo perez on June 3, 2012 at 10:53 pm

    mlps and reits are tax deffered and lose that advantage when placed in a 401 k and or ira. i think they are best used in a private account.

    • Genius on June 4, 2012 at 12:02 pm

      It’s best to talk to an accountant that knows about this stuff. I dont think “Tax deffered” is the right term for it.

  3. Robert on December 27, 2012 at 5:14 pm

    Any way to get in on the $1 investment as a member don’t know how I missed that while being on email list each week? Can I contact someone to get in?

    • Genius on January 2, 2013 at 3:55 pm

      Sorry that was a limited time offer and has expired.
      Our service is still a great bargain at the regular price too. 🙂

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