Since you are reading this blog you are close to retirement or are already retired. In this blog I will share ideas on how you can safeguard your investments from devastating losses, safely grow them so you have enough income to meet your needs, and pass on some to your loved ones. I also want to share with you how you can generate income in retirement through trading.
I am an engineer and entrepreneur. Most of my career has been in engineering software, sales and management. I have been managing my investments for the past five years. Everything I am sharing here is information that I have learned over the years and applied to manage my investments.
I will also share with you tools I use to manage my investments and trades.
I believe this information will be useful to you even if you use a financial advisor to manage your money. You will learn how you can ask informed questions of your advisor to make sure your interests are aligned, and your investments protected.
Four Core Principles
These are the four cornerstones that guide my financial decisions.
Nobody knows anything with certainty
I believe the financial markets are too big and complex to be fully understood by anybody completely. However, one can use probabilities to manage risk when making investment decisions, especially related to short-term trading using options.
A body in motion stays in motion unless compelled by an external force to act otherwise
This a Newton’s universal law of physics. It applies to financial markets too. That is why we have Bull markets and Bear markets. Unfortunately, nobody knows when a Bull market turns to a Bear market except in hindsight. But with charting tools you can capture 80% of a market move be it bullish or bearish.
A 50% loss requires a 100% gain just to break even
If you lose a large part of your portfolio due to a tail event in the early part of your retirement, it is extremely difficult to make up your losses before you run out of time. Using hedging you can mitigate this devastating sequence of returns risk.
Timing & order matters
To minimize taxes and maximize social security you must properly sequence your withdrawals from your investment accounts.
Investment Philosophy
As you might have guessed my investment philosophy is momentum based. Unlike a fundamental approach to investing which is based on what should be, I simply believe in leveraging what is.
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