The 4% Rule for Retirement Isn't For Me

Are you wondering how you’re going to make your retirement work financially?

Facing retirement is daunting at any age. When you’re 30 you’re wondering how you’ll ever afford it, and when you get older it seems like that day will be here before you know it.

The statistics say you need 1.5 million to retire with withdrawals of 4% of the account value per year.

That’s enough to start an anxiety attack.

But what if those rules don’t have to apply to you? They don’t apply to me.

How?

I trade covered calls in my 401k.

I currently make $2,000 to $4,000 monthly in my 401k in covered call premiums. That means I’ll make 30K this year of fresh cash coming into that account. 

I’m allowed to deposit $22,500 in cash deposits, so isn’t it INCREDIBLE that I am blowing the cash contribution amount out of the water by simply doing covered calls?

And doing the covered calls takes me about 1.5 hours a month. So I make $2,000 per hour doing this!

Getting back to the 30K I am making this year. It would grow tremendously if I simply let that 30K compound for 20 years.

But - I’m not going to do that. I will buy more shares to do more covered calls with that 30k. And next year, that 30K will become 35K because of the increased premiums I will be making.

Can you imagine what year 10 looks like on this plan?

And this isn’t even the best news. 

Maybe you already figured out where this is going and why the 4% rule will never apply to me.

I will continue to do covered calls in my retirement account when I am retired.

If I am making $3,000 now, can you imagine what I will make in 20 years? To say that it will be 5 times that amount is no exaggeration. It will be, at the very least. My principal will never go down. I’ll hand my kids a nice little parting gift when I check out.

((PS- if your 401k doesn’t allow for covered calls, don’t stop there, you may be able to rollover your account into a self-directed account where the sky is the the limit!))

I have a new program for investors to learn options trading side-by-side with me over a few months. I’ll be there every step of the way to share top strategies for brokerage and retirement accounts. By the end of the program, you’ll have the skills to milk cash from your nest egg and retirement account for LIFE. I take on 4 clients a month, so spaces are limited.