Oh I agree. Thinking at the moment is to get a place, rent it out summers, use it spring, fall and winter. Fix it up a bit as needed. Then in a couple of years move there and sell the current house. We are fairly confident that's where we want to end up.
I'm stuck in that zone where I was basically 99% invested in stocks so I have no cash to buy anything. Although I am maxing out my 401k so at least I'm getting some money in every pay cycle.
I still think this is a sound plan, and it definitely worked out well for the people from whom we've rented; but I do also think that those of us who haven't been the second-home owners yet probably underestimate the time, money and headaches the "fixing up" and maintenance costs over the years. Although both were great properties, at least every other summer there was some type of property maintenance "emergency" that required the owners to come out and fix it for the better part of a day, sometimes with a contractor of some sort.
Sort of. They mostly do it to maintain control of the companies they built and chart their direction. It's not a coincidence that among the most successful companies of all time, many had founder control for a long time. Microsoft, Apple, Oracle, Ford, Amazon, Facebook, Tesla (Musk took it over very early but didn't found it). Page and Brin still own 51% of Google. Dell lost control, the people who took it over wrecked it, he bought it back and took it private and fixed it.
Fortunately, I've done that. My wife's parents had a place in Vermont. They became infirm and it became ours. Complete with all those headaches. We had a flood come in through the bathroom window (house built into the mountain), that cost us $30k in repairs, including mold mitigation. Thank God the Pandemic allowed us to sell it to a couple from Brooklyn without taking a loss. It be a substantial amount of work. I'm semi-handy. Can do light plumbing (toilets, sinks), and some other things, yardwork. In places like coastal RI and the Cape there are management companies that handle the rental emergencies.
I know the feeling. As hard as it is try not to look.
I check it maybe once a week just to see what's going on. I don't actively trade, I just set it and forget it. My entire portfolio only consists of 3 things: an S&P index fund, a blue chip growth mutual fund, and Microsoft
No doubt, yet not only the 1% HNW reasonably manage portfolios to harvest gains vs tax loss leveraging, free up cash, and enable buying during and after individual security down swings and downturns generally across various sectors, cap sizes, markets, etc. The uber uber uber rich just have more digits.
Both bonded local handyman managers with solid reputations and track records, and/or professional management companies alike can be reasonable alternatives. Typically, the latter more costly albeit with more services, e.g., online tracking, established vendor-relationships, etc.
example: X, Y or Z security up 200, 300, 400% last year (or any year), take some profits on highest-cost shares => free up cash to buy other stuff person wants to invest in, etc.
MSOS headed to 420. Added some TLRY earlier this month.
You do realize that no investment can go down more than 100% right?? And you SELL calls against your long positions to hedge, you don’t buy them
My reference to calls was not entirely clear, and it should have been on a separate line or in a separate sentence. To hedge against anticipated declines, I referred to puts bought to provide some cover on overall LT holdings.
What you are describing is accomplished by selling puts, not buying calls.
Sell put right to buy, or buy call obligation to buy. Accomplished goals, bought at desired exercise prices. Alternatively, spreads yet keeping it simple. Coupla decades+ worked out OK. /s
The right to buy/sell comes from buying options. The obligation to buy/sell comes from selling options. Your "strategies" stated above ("2. IF the specific companies potentially dropped to desired BUY exercise prices 3. IF overall US equities declined significantly. Did, exercised.") are accomplished by selling puts, not buying calls.
True dat, and exercise prices, intended goal(s), and timing matter. Misrepresented why, and when calls were bought. Exercised bought puts, and separately bought calls yet not for reasons in the misstated examplle. Yikes, my bad and still worked. I'll lay off the meds.
