How Boomers Got Shafted

It doesn't seem fair.

The Baby Boomer generation didn't deserve it.

They worked hard. They played by the rules. They fought in bitter wars. They raised families and gave their children a good start in life.

They ate well and took care of their bodies so that they could expect to live longer than any generation in history.

Many of them took care of aging parents, educated their children, and gave back to their community, often at the expense of not saving up quite enough for the Ultimate Third years of their lives.

"Retirement" was never part of their vocabulary. Baby Boomers were looking forward to the Ultimate Third years with the same enthusiasm and energy that they embraced change throughout their lives. They planned new adventures and new activities they could embrace without the encumbrances of full-time employment.

Many of them wisely put their retirement money in broad-based index funds rather than mutual funds. They did not want to depend on their children (or the government, ha-ha) to provide support for them in the vital post-work years of their lives.

I know from experience. I paid maximum contributions to the government's pension plan for 40 years, and now that I am collecting full Social Security benefits, I find that they don't even cover the property taxes on my house. The idea that you could have a life on those meager distributions is some sort of perverse joke we all suspected might be true but secretly hoped it wasn't.

And then the crash came. Baby Boomers got clobbered In late 2008 and early 2009. Everything changed. The market fell by more than it had in history. Trillions of retirement dollars evaporated in a few short months, money that had taken decades to accumulate.

Ultimate Third plans and dreams were squashed. Only 13% of soon-to-retire Baby Boomers feel they now have enough savings to support themselves in retirement - the lowest number in history.

The financial melt-down has forced many Baby Boomers to do things they never thought they would ever have to do:

Postponing indefinitely (or eliminating altogether) all thoughts of retirement.
Renting out a spare bedroom to strangers.
Getting a second part-time job.
Eliminating restaurant meals.
Returning to school to gain computer-related skills they never expected they would need.
Checking into reverse mortgages, etc. etc.

The melt-down has changed everything. It doesn't seem fair, but it is the truth.

What can a Baby Boomer do now? Should he or she just continue to own broad-based index funds in their IRAs (after all, there is overwhelming proof that for the last 50 years, no other investment strategy has done better)?

I have an unconventional investment idea I would like to share with you. I think it can get the money you lost over the last year back in far less time than any other investment could hope to do.

You no longer have the luxury of having 30 or 40 years for your savings to accumulate before you contemplate those vital, active years without a full-time job. Those Ultimate Third years which seemed so far in the distant future are looming just over the horizon, or for some Boomers, have already arrived.

I believe that I have a strategy that will earn over 36% in most years and that the odds of doing that well are extremely higher over the next few years than they were in the past. The reason for the better odds is the big melt-down that got us all into this mess in the first place.

My goal is to recover the 40% or 50% you lost over the last year, and to do it in less than 3 years. It will require that you consider an unconventional investment idea that I feel confident you have never been told about before. Nor will you have read about it in the financial press, or Money magazine, or in the AARP magazine.

If this strategy is so great, why isn't everyone doing it? That is a perfectly good question. The answer is simply because it involves stock options (a form of derivatives). The words "options" and "derivatives" have dreadful reputations.

Stockbrokers (and virtually all financial advisors) won't or can't tell you about my options strategy for many reasons:

The easy answer is because they don't understand options. They know (or knew) enough about them to pass the licensing exams, but that's about it. Compare this to someone like me who has traded options nearly every day the market was open for the past 30 years (including a stint on the floor of the CBOE).

If you have read The Outliers by Malcolm Gladwell, you know that he demonstrated that truly exceptional performance in anything requires a time commitment of at least 10,000 hours of work. He attributes much of the Beatles success (over dozens of similar English rock bands) to a job they took that required them to play for 8 hours a day 7 days a week. I have paid those dues. I don't know of a single broker or financial advisor who has come close to making this kind of commitment.

But there are other good reasons why they won't tell you as well. First, commissions at most brokerages are too high for my strategy to be profitable. Commissions in option trading are many times greater than they are for stock trading, and the only place where my strategy will work is at the lowest-commission on-line brokerages.

In the past, if you dealt with an on-line discount broker, you had to make all the investment decisions and trades on your own. Now, thanks to something called Auto-Trade, that is no longer necessary. You can have every trade made using my strategy done for your automatically so that you can continue on with your more important life activities without worrying about your investments.

Second, even if they knew about the strategy because they read one of the books I have written on it, brokers and investment advisors won't tell you about this strategy because it is inherently too risky for them. Note that I didn't say that the strategy was too risky for you, but for them.

Everyone "knows" that options are leveraged and inherently risky investments (if you read my free White Paper, I hope I can convince you that this strategy is far less risky than buying stocks or mutual funds, but that comes later).

If your broker or financial advisor puts you in options and you lose money, you will either fire him (or even worse, sue him, and probably win) because everyone knows that options are risky. So he won't take that chance (especially since he most likely doesn't sufficiently understand options in the first place).

So you are unlikely to hear about this strategy any place other than through me, and I am confident enough about it that I will divulge all the details to you absolutely free so that you can judge for yourself whether it has any validity or not.

It will take about 5 minutes of your time to review this Summary of the Boomers Investing 10K Strategy. It could seriously change the rest of your life. I hope you will print it out and spend even more than 5 minutes checking it out.

Or, if you prefer, you can just keep scrolling down, and find it here....

Summary of Boomers Investing (10K) Strategy

I have a quiz for you...which investment is best?

Stock Purchase (#1) - Profit area = orange + red (purple area is a loss for stock purchase)

Option Portfolio (#2) - Profit area = yellow + orange (loss doesn't start until $84)

This graph depicts what will happen in one month if $10,000 is invested in the S&P 500 tracking stock (SPY) when the stock is trading at $95 (Investment #1) compared to $10,000 invested in an options portfolio using our 10K Strategy (Investment #2).

Buying the stock only results in a profit when the stock goes up. If it goes up more than 10% (from $95 to $104), the stock purchase will do better than the options portfolio. However, SPY has historically gained over 10% in a single month only about one month out of 20. In the other 19 months, the option portfolio should do better (unless the stock falls over 12%, also an unlikely event).

The option portfolio could gain over 15% if the stock fluctuates by 5% or less in either direction. Yes, that means if the stock falls by 5% in the month, the option portfolio could gain about 15% while the stock portfolio loses 5%.

How the 10K Strategy Will Typically Perform:

If the market falls by 5% in a single month, the strategy will make a profit.*
If the market goes up by less than 8%, the strategy will make a profit.
If the market is about the same at the end of the month as at the beginning, a large profit will result, usually 10% or more.
If the market falls by more than 5% or goes up by more than 8% in one month, a loss may result, although cash is set aside for adjustments to minimize the potential loss.

*In rare circumstances, a 5% drop in the market might result in a loss for the options portfolio. See Conditions Which Might Cause a Loss.

What the 10K Strategy is Based On: Rather than trading options on an individual stock as the underlying, we use indices made up of a large number of companies so that unusually bad (or good) news for a single company does not result in a sudden and sharp move in the stock price. Since the 10K Strategy performs best when there is only a moderate fluctuation in either direction, we try to avoid underlying stocks or ETFs with high volatility.

Our more conservative portfolio, Boomer's Revenge, uses the S&P 500 tracking stock, SPY, as the underlying. SPY is made up of the 500 largest industrial companies in the market, and is considered by many people to be "the" stock market. See a list of S&P 500 Component Companies.

Our more aggressive portfolio, Marco Polo (the intelligent adventurer), uses an Exchange Traded Fund (ETF) made up of 84 large companies in the financial services industry (XLF). While this ETF is quite volatile, there are some serious unusual options-related reasons why it should outperform traditional investments, and the government seems determined to avoid letting these large financial institutions go under (which provides some downside stability for an otherwise volatile ETF). See a list of XLF Component Companies.

How it Works: The 10K Strategy is similar to buying stock and writing calls against the stock, except that LEAPS (call options with one or two years of remaining life) are used as collateral rather than stock. Faster-decaying short-term call options are sold at several different strike prices to reduce risk.

Why it Works: The strategy is based on the simple fact that options decrease in value (decay) every month of their existence (assuming that the underlying stays flat), but the rate of decay varies considerably. In the final month, an option may decay at four or more times the rate it decays in a month when it has two years of remaining life. The 10K Strategy involves buying the slowly-decaying long-term options (LEAPS) and coincidentally selling fast-decaying short-term call options against the LEAPS See Sample Decay Graph.

Where it is Carried Out: The strategy is carried out in two actual portfolios at BoomersInvesting.com - one conservative (Boomer's Revenge, $10,000 per unit) and one more aggressive one (Marco Polo - The Intelligent Adventurer, $5,000). Insiders can mirror either or both portfolios in their own account with those starting amounts or multiples thereof. Most subscribers have the trades done for them through Auto-Trade so they don't have to monitor the market and be alert for Trade Alerts on their own.

How To Start Your Nest Egg Growing:

You open an account at thinkorswim (voted by Barron's as the #1 on-line options broker for 3 years running). While we recommend that this account be an IRA (see why), it can be a regular brokerage account as well. If you have funds in a 401(K) plan, you may want to transfer some to your own self-directed IRA (see 401(K) Transfer Considerations).
You become a BoomersInvesting.com Insider and agree to pay our low monthly subscription fee for one or two portfolios. The first month is free, there is no set-up fee, and you can cancel at any time. We believe that if you're not making superior returns with these portfolios, you shouldn't be paying for it.
You authorize thinkorswim (through their Auto-Trade program) to set up and make all the necessary trades in your account for you (after you decide how much money you want to invest and which portfolio(s) you want).
You get a monthly newsletter (by email) which discusses how the portfolios have worked out for the last month. Of course, you can always check your own account at any time to find out how you are doing.
At the end of each expiration month, we withdraw gains over the starting amounts of the portfolios in increments of 3% of the starting values so that new investors can participate for approximately $10,000 for Boomer's Revenge or $5,000 for Marco Polo. In your account, you decide whether you would like to leave the cash sitting there, withdraw it, or invest it in something else.

The BoomersInvesting.com service is designed for busy Baby Boomers who simply want to earn exceptional returns on their invested capital without learning the intricacies of the complex world of stock options. If you are interested in learning more, please visit the Boomers Investment Library.

Are you ready to read the whole story?

I have written a White Paper that gives you complete details about the 10K Strategy .It is similar to another White Paper I wrote which costs $79.95 (and over 10,000 copies were sold). I will give it to you absolutely free, in exchange for one little favor from you.

That favor is simply to ask you to forward a copy of this short Summary to another Baby Boomer who might be interested in learning more about a high-yielding alternative investment strategy involving options. You might benefit from another set of eyes checking it out, and I might benefit by having more people become familiar with the 10K Strategy.

Why am I offering you the White Paper for free?

If the 10K Strategy is so valuable, you may wonder why I am offering you the details without asking for any payment. I think I have some good reasons. First, I expect that you are not willing to risk your hard-earned money on anything that you don't fully understand. As a Baby Boomer, you have been subjected to just about every imaginable claim and promise for your entire life, and you are just too smart to accept an unconventional idea without knowing the full details.

Second, I don't think you will want to carry out this strategy on your own. You have too many other things going on in your life. You have better things to do other than to keep your eye on the market every day (that is my only job, and I love it with a passion).

Third, I suspect that once you see how this strategy works, you will want to invest some of your Ultimate Third money in a strategy that might yield many times what you could earn with a conventional investment. You can accomplish this by signing up for a discount broker's Auto-Trade program, and asking him to follow one or both of the portfolios I conduct using this strategy.

Get your free copy of the White Paper right here:

Yes, please send me the FREE White Paper.

You should receive your copy by email in a few minutes. I will also send you a copy of this Summary for you to forward on to another Boomer. Thank you, and happy reading!

Terry