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.