I am away so won’t give the regular updates. I made a couple of trades, including a poorly timed selling of NFLX calls early Tuesday. That leg turned into a 600 percent loss when I closed it mid-day. Still, NFLX trades have been a net positive for me in 2018.
For the year SPY is up about 2.5 percent. My account up about 11 percent. Good news.
Anyway, I sometimes talk about what I call the 10-10-50 plan to financial freedom. If a person can live off half their wages, make 10 percent per year investing, in ten years they can be financially free.
For example, a person earns $50,000 a year. Save half of that for ten years and the straight amount is $250,000. Earn 10 percent a year on that and it is close to financial freedom. The simple example ignores taxes and inflation, but also leaves out any gains during the savings phase.
There is a lot more to life than money, but so many young people seem to yearn for that freedom, I think the idea worthwhile.
I’ll be back with full updates in August. Until then.
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