Certified Public Accountant http://www.cpavirginiabeach.net David Scolamiero Certified Public Accountant http://www.cpavirginiabeach.net

HD Vest Investment Services, Inc. Partners HD Vest Investment Services, Inc. https://www.hdvest.com/story/about-hd-vest

Obstacles Taxes Inflation Outliving your Money

Taxes

Inflation

Considering taxes and inflation?

Outliving you money

Which do you fear more?

Death?

Running out of money?

4% RULE

72 rule

Growth of $1

What asset class?

What sector?

Why do investors lose in the market? Need for cash requires asset liquidation. Chasing the trend – buying the top of the market and then selling in panic at the bottom. Speculation – Contract expires worthless.

6 Wealth Management Issues Investment and Retirement Planning Risk Management Tax Planning Legacy and Estate Planning Business Planning Special Situation Planning

6 Wealth Management Issues Ideal Acceptable

6 Wealth Management Issues What age would you like to retire? Do you see yourself working in retirement? What is your desired after tax income in retirement? Do you have a current will/trust? Do you have children/grandchildren to educate

6 Wealth Management Issues Do you have life insurance? Is it sufficient? Are you comfortable with the risk in your portfolio? Are you satisfied with your progress? Large capital loss carryforward? State income tax credits?

Are you generating Monthly Income From Stock Investments?

How to Generate Monthly Returns From Stock Investments? You own 100 shares of Harley-Davidson stock worth $48 a share on July 27 2017. You sell someone the right to buy 100 shares at $50 from you anytime in the next 50 days until September 15, 2017. For that right, you charge a fee of $107.

Value goes up The buyer exercises his right to buy the shares for $50. You keep the $107 premium and realize gain of $136 on sale of the stock for a 5.1% (36.75% annualized) rate of return and you'll have to find another investment to buy in order to continue the strategy.

Value remains the same Since the buyer won't be willing to pay $50 per share when the market value is $48 you have made 2.2% over 50 days (16.2% annualized), and you can even sell the right to buy 100 shares again, presumably for another $107!

Value falls The $107 premium you received helps to offset the loss. The buyer walks away when the right expires, and you're also free to sell another right.

Scenario

The Options Market

Basic Strategies Calls Puts Buy (Holder) Sell (Writer) To benefit from a price increase To determine the future acquisition price To hedge a short sale To benefit from a price decrease To determine the future selling price To hedge a long position Sell (Writer) To generate additional income

Covered Calls Pitfalls Covered-call writing is really quite safe and simple. But many people think this is a risky strategy... because most people do it wrong. They buy high-risk stocks because the option premiums are expensive and generate the largest current return. But then, the stocks collapse, and investors are stuck with losses.

Covered Calls Pitfalls The other pitfall to covered-call writing is that you sell off your potential for large gains. If you like the prospects of a stock and believe it could easily double or triple, then don't sell options against it. You'd cap your profit potential and guarantee that you'll be out of the trade before it goes higher. Take our example. We are obligated to sell the 100 shares for $50. But if the stock jumps to $55 we will not realize the increased price.

Covered Calls Pitfalls The secret here is to focus on buying low-risk value stocks and then selling the calls. For my clients, I keep the risk very low by focusing on conservative, value-oriented stocks.

Widow and Orphan Stocks

Performance

What annual rate of return would you be completely comfortable with?