Great video. I was laid off Sept 2023 from a nice 100k+ job. I decided I didn’t want to go back to work so learned everything I can about selling covered calls and also some high yielding dividends. I’ve been doing well so far. Only had an initial 100k saved in investments and have made enough to live on and even grown my portfolio since then. Fortunately I have no debts, just some low monthly bills that are less than $1,000. Just sharing my story so others can know it is definitely possible. I’m 52 years old now. Best of luck to everyone :)
Agree, I’m 47 and retired for about a year now. All my older siblings and friends are still working with no end in sight. I keep saying I’m thinking of getting another job… but I’m not lol
I tried call and put credit spreads in early 2023 and did well for about 3 to 4 months (up about $15k). Then, not knowing when to quit ended up owing my margin accounts about $15k. I still owe around $8,500. I never had the large cash position to buy cash secured puts. I have done covered calls. I would be interested in seeing videos on this. You don't have to be an "expert" just over what you have been doing and your reasons for your choices.
Thank you for being open and real with your experience. I turn 29 this year, and videos like this give me insights I would otherwise not have access to for future planning and prioritization.
Good to know. I'll look into making content on it in the future. I'm not an expert, but I can share from a newbie perspective how to get started and what to look out for.
Thank you for providing so much transparency on this subject, early retirement is the goal for many but there isn't much discussion about when you reach financial independence.
Please share options route in the future video. Will be very interested in that. Thank you very much for the video! Also how is taxes work for all your dividends? Is that account into the budget as well?
I thoroughly enjoyed this video. I'm in the same boat. I never returned after Covid. I was 50. I realized my dividends were enough to pay for the bills. Now 4 years since, I'm a better person. I don't get bored. Stay active.
Hey Jake, I’d love to hear more about your options strategy too. I’m just starting to dabble with cash secured puts and like to get as much info as possible. Thanks for sharing your journey!!
I been building my portfolio I am just buying and building not selling, I keep telling everyone about trying to retire early I told them it’s all about mindset, I bring my own lunch to work now instead of spending $15-20, was on vacation this week instead of us going in a family vacation we skipped out and I actually went in to work 3/7 days of vacation for double pay to buy a couple extra shares
I’m not done with your video yet but there’s just so much I could say about this video. Can’t believe it took me this long to watch it. I highly resonate with your thoughts on being laid off and not having closure with some things and feeling robbed. While I wasn’t laid off, I recently listened to a podcast episode dealing with a really bad layoff situation and the feelings of resentment and lack of closure. For me I totally get what you meant by feeing like you weren’t as productive and that being a big change. I didn’t have a glossy title with a high income. I was just a manager at a restaurant and went from being influential, being the guy who made decisions, and being a role model for some, to not having a job. For me, I gave many months notice and then I left. There’s some resentments I have that came as a result of all that, but overall I’m happy. I actually saved entirely TOO much money and was actually not spending as much as I thought I would, so I was able to allocate more for stocks. I have since returned to work part time and as I said on another video, I reached barista FIRE. I am very fortunate that I have yet to touch my base of wealth and actually my wealth has increased around 8% despite me not having a job and then going to part time work. Do I miss the higher paychecks? Sure. Do I miss the stress and the hardship of not feeling recognized and being super stressed? Nope! I like my current financial state. 🙌
This is spot on!!! Exactly!! I’m glad that there are others out there that can relate to what I’m saying. I bet you’re loving the barista lifestyle now. I really enjoy it! I do miss being “the guy” but also don’t miss the stress.
I was unexpectedly laid off in December 2023. I did the exact same thing. I was preparing to retire, needed another year or so, and I too made up the difference with options. I was experimenting with them as far back as September, then had to finish building the plane mid-flight and dumped what I had free into it. Been making about the same amount as you on them.
Is your dividend portfolio on m1 in a taxable account? If so can you make a video about how your taxes were in 2023 with regards to jepi/jepq since u have so much in those 2 etfs?
Yeah this portfolio is in a taxable account. We have a Roth IRA/HSA as well that coasts in the background until we reach 59.5. We won't pay much in taxes because of the income it generates. In fact you can pay zero taxes in early retirement with you dividends up to a certain amount. I made an entire video on this which I think will help you understand it more: th-cam.com/video/9_LX-ayAzo0/w-d-xo.html
Yes, it would be good to get your perspective on how to generate the extra monthly income selling covered call options. Seeing how much you would have to use to generate an extra $3500 to 10k monthly.
I’m so happy for you! I know it didn’t happen the way you planned, but the universe will always give you what you need and what you can handle. Stay the course. Life is a marathon, not a sprint.
Interesting video, thanks! From my own experience, if you move to a new town in FIRE, one of the biggest problems is making friends, because so much of who are friends are, are either those you had gone to school with/grown up with or people you work with. But, if you live someplace without old friends or a job, it is much harder. The second is if you are an American, healthcare costs. Every state is different, but it is not simple, easy or cheap, from my personal experience. But, if you can sort those kind of things out, FIRE can be a blast! Wishing you all the best!
I don’t think you should look at it like that. You can be thankful you had been preparing to leave so when the unexpected happen, your family was sitting financially better than most.
Happy to hear you’re doing well Jake. I think making a video on how to do options would be helpful, hard to find educational content on that on youtube.
Jake, while listening to the part when you said I wanted to be the one that pull the trigger, I want to say "I quit." I believe anyone of us who work a job could relate to that. Man, what a good feeling would that be. I just am not close to that at all.
Yeah I was dreaming of saying that for years!!! Things don’t always work out the way you plan them - but I’m so happy we are in the position to do what are doing now. I appreciate you taking the time to comment this!
Little over a year ago I moved to UT for work, what a beautiful state. Not sure I'd retire here but it's growing on me...I'll be retired from the military in a few years in my 40s. The plan is to grow the real estate portfolio and work that part time.
UT is a great place to own rental properties. The market has changed a lot. My parents always talk about their challenges 20-30 years ago. A lot has changed these past few years.
Loved the video and alot of what you shared!! Thanks for the vulneribility, I do have a question about wanting to know more about put options like you mentioned. I have never heard of that before and would love to hear you go into depth on it!!
So glad that you enjoyed the video!! I really appreciate you being here! I made a pretty in depth video on cash secured puts. This video might help you out: th-cam.com/video/xkGiVg5MjHk/w-d-xo.html
I had a similar experience. I retrained into an entirely different field and I had this whole Keyser Soze scenario planned for when the day came that could finally leave my horrible job in a horrible field but it just fizzled out into a slow progression from one field to the other. I was devastated 😂😂 I reinvested my money into my re education but there are times I wish I'd invested that money somewhere else and sucked the mop for the last decade and retired this summer at 50. Hindsight is always 20|20 I suppose
What a amazing story, I am late to investing and I value all the information you share with us all. I am 46 and hope to achieve fire at some point to decelerate my fast lifestyle. Thank you !!!
Thanks for telling this. Here is something that maybe of help for finding purpose after retiring, I havent retired yet but what i plan to do is get chickens and a farm
This is great, thank you for sharing your story. It's pretty wild how life doesn't go the way you plan but it really sounds like things are working out for you and your family. Curveballs sure suck!
What a great video. I would love to see an options video🎉. Congratulations 🎊 on your retirement. Although it wasn’t the way you wanted it, nonetheless you were in a position to do it.
Thank you for sharing some of the more vulnerable aspects of your life with us! I think many of us would appreciate hearing about the use of options in your portfolio. I myself have some experience with options, but I would love to hear from the perspective of someone who is using them for income
Great video Jake, thanks for the inspiration. I work in public tax and barista fire is the goal. Eventually only need to work Jan-April and then travel+chill the rest of the year. Keeping the job to subsidize will let me semi-retire much earlier.
I am super late to the party, 45, but have to start sometime. One thing I haven't understood about everything I have learned is; how you truly retire? Do you take some or all of your dividends and not reinvest some or all or just a percentage? Cause would think you would still want to grow your returns.
Wouldn’t a big drop blow your CSP out of the water and you can’t sell CC anymore? Options income can’t be guaranteed and there will be many months of no income
Hey Jake, glad to know you doing well and obviously the challenges you’re going through will help all of us working harder and hoping for a smooth FIRE movement, by the way I’d love to learn with you on that options income.
The transparency was super fresh and encouraging, been following your journey for a while now! I was actually asking myself midway through the video "I wonder if he's thinking about selling options..." haha. I think your viewers are the perfect audience for a video on how Jake added options to his FIRE income.
Hey! Thanks for saying that! Yeah the csp and cc can be a great way to add income to your portfolio with a smaller account balance. The income can vary but there is a lot of potential! I’ll talk more about it in the future.
@@DividendGrowthInvesting But won’t the investment return less if you don’t drip? Because since the stock will drop by the amount of the dividend being paid?
Amazing video, Jake! It literally inspired me. Your journey and mine are extremely similar and this is exactly what I needed to continue on my own F.I.R.E path. Keep up the good work!
One of the things that worry me is retiring fully with nothing to do. I'd be bored out of my mind. I don't think i need more traveling, more frivolous spending, etc, I'm fairly content where I am in those regards. I guess the optionality is what I want, but i couldn't see myself just sitting home without some sort of work, even if it's free work...
@@DividendGrowthInvesting thanks for the reply! I’m definitely interested in the options wheel strategy and love hearing real examples of people implementing it.
Bro, my girls are 3 and 1. All I want is to spend the rest of my life traveling the world with them. Current net worth is around $500k without the house we live in. What is the next step for me?
Take a look at travel hacking. We’ve been doing that and it works very well. You may need to focus on lower cost of living areas like South America or Asia.
Have you thought about government healthcare? When I worked part time for tips, it was under $50 per month, but it would cost me money during tax returns. For 4 people that would be $200 per month unless it went up, which is very possible. Just a thought. It would not be the best insurance, but might change your finances or at least something to look into. Can you do an options video at some point. I am curious. I typically stay away from options/puts and other stuff I don’t understand, but I respect your financial knowledge so I am curious. Thank you for the video!!!
Hey! Yeah I’ve looked at different healthcare options. Nothing out there is perfect. All come with trade offs. I’ll make options videos in the future. It’s not something I wanted to do but it’s really helped boost our yield.
I recently "dropped a bomb" to my boss when at the end of my shift left my retirement letter at his desk. He wasn't very happy about it because left me multiple voicemails on my phone but he was an A-hole anyway. I'm glad I have my time back. No more stuck in traffic for an hour just to get to work. Cheers Jake, you have a beautiful family!
Hi Jake, like you ive just recently retired in malaysia(i'm a malaysian) at the age of 49 last year. Like you I've been doing options for years prior to that. However, I kept seeing poeple saying how dangerous and zero sum game it is. Thus far, Ive been making good gains albeit some capital gains cap due to the nature of options. If you make more videos about options, can you eleaborate more on this expect of options (especially as a zero sum game point of view). Really appreciate your 101% efforts. Keep doing what you do best and thank you. Cheers!
Hey! That is so exciting that you got to retire early! I've heard great things about Malaysia! Yeah options for income comes with both pros and cons for sure!
I have reached the lean fire level for my personal situation but keep working as yes, I feel I need more of a safety margin, and just working a couple of years more would increase my networth rapidly thanks to compounding. I do have a question about drawdown plans though. If you plan on living on dividends without selling stocks, do you withdraw the money in december the amount you would need for the whole next year, or do you withdraw every quarter, every months? I'm asking because dividends get paid irregularly some even semi annually...
I withdraw the money as the dividends are paid to the M1 savings account. I do a transfer once a month to my checking account. I don’t worry about withdrawal strategies because I’m just living off the income not selling shares.
if you dont mind how much do you have invested in your portfolio which you are selling options? you really should make a video showing some of your trades. it would help alot of people out. ie. deltas you look for , strike price date (ie 30-45 days) selling CSP on just the blue chip stocks? stocks you would want to own forever? that way if you get assigned you have no problem selling covered calls. thanks
Nice pivot, Jake! Thanks for sharing your adventure. I really appreciate the details. Glad it's all coming together for you and your family. It not the way you wanted and it's not as fast as you wanted, but you're getting what you ultimately wanted. That's key! Congrats on seeing the light at the end of this. I'm glad your wife will get to join you and not work soon. It is not as much fun having your significant other still working. I'm looking forward to when my other half retires. You guys are going to have some great road trips with your son until school starts!
Thank you for saying that! Yeah I’m excited for her to join me! We are considering all of our options. We may even try to homeschool our son. We have a few plans around that but flexible depending on how our lives change these next few years.
I’d recommend watching this video: The Simple Path to Wealth with dividend investing (Core and Satellite Portfolio) th-cam.com/video/iEwAipBKPUo/w-d-xo.html
I came across a video and I like it .do you have any advice for a person starting out.. I'm just starting out and I'm trying to look for a good dividend stock to start with any advice or suggestions to start looking into
Could work well. I like that you are thinking about all of how all of your accounts contribute to your goals. May make sense to consider an ETF like DGRO to get a bit more growth and more market participation (exposure to the overall market).
Good on ya Mate. Thanks for sharing. Selling Options is a great skill to have. You don’t need as much principal to produce real cash flow to cover one’s expenses. I think the Fire movement would benefit from it being discussed more. However it’s not for everyone. I think a passion for the markets helps. I’m doing this and hope to retire to an actively managed portfolio. One can also invest some of the option premium to passive ETFs and get the best of both worlds.
It comes down to your expenses. If you have higher expenses, it makes it more difficult to retire early. Also retiring early can mean something different for everyone. I chose Barista FIRE so I am still working part time, but I retired from my 9-5 job.
What a great video. As always, you continue to make me think about things that I wouldn’t have considered otherwise. Trying to enjoy the journey as much as possible but I am so curious what life will look like for me on the other side when I do approach that time. One thing is almost certain….it will most likely be much different than I currently envision it. I am curious…what do you do with your home in Austin while in Utah? Do you rent it out or keep it available so you can come and go whenever you want? I can see it being another source if income but also understand the freedom you’d have by not renting it out or BnBing it.
Hey mike! We are currently living in both with no plans or renting it out. If things change for us then we would consider renting it out. It’s great having both places to call home.
Im genuinely curious about your options strategy. How much capital you'd recommend to start. How you would go about narrowing down which stocks to go in on. Expected returns. Would be really interesting. Definitely a deviation from the normal content. But with a huge disclaimer for those who arent as familiar. Because you can get into big trouble using options.
Yeah I’ll share how I did it. It’s not very difficult. I’m pretty conservative with how I do it. The income could vary greatly on how you do it. There are a lot of great ways. I’ll explain how I do it and why in a future video.
Your videos are very useful and I really appreciate that they are authentic as well. Thank you! Also I've got a question.. If I have a horizon of 20+ years and I want to invest in dividend growth ETFs so one day I can retire from that portfolio would your advice be 50% SCHD and 50% DGRO or something else?
Hey Jake, I’d be interested in seeing a video on your options strategy for income. I plan on doing this in retirement only in my Roth. A few questions: what are you selling? Exp date? What’s plan B if the market tanks and you have to hold the bag (can’t sell below cost basis question). And can you compare it to just buying jepi and holding? Thanks for all your content.
So, I’ve been in control of my time for a while. I still get up at 5am but I feel guilty for having so much more time freedom than most. I have to actually tell myself I don’t have to feel guilty. I made a lot of purposeful action steps that were not easy.
Thanks muchly Jake for the very real world take on your experience! I'm 71 retired and my wife is 55 still working. We live in Canada; own house and have "0" debt and maxed all of our tax advantaged "registered" accounts. Our only son is on his way on the career path; so no more expense there. What I wanted to say is thanks for your Covered Call videos; we are building a portfolio that has about 15% of those and just added JEPI and JEPQ. Our portfolio is about 60% the size of yours with a diversified mix of stocks, ETF'S, and small allocation of bonds producing $25000/yr. income tax free. Without debt, except property tax, groceries, and travel spending we are very close to FIRE. Thanks to our public health system we don't have heavy premiums to pay, however our Canadian Healthcare is deteriorating because of this! Thanks again for showing how the analyse CC ETF'S; it's been a big help!! The Canadian CC ETF'S that I have been using are BMO's; ZWA, ZWH, ZWC, and ZWG. Cheers, Willem 🙏
Hey! Those covered call ETFs can be a great way to boost your income! I’m jealous of your healthcare even if it’s starting to get worse. We have to pay a lot in the US. That’s how they keep people working in America. I’m happy that you are so close to reaching FIRE!
I would love to see an overview of what you do with options. If your expenses are that high, and Lucas is only 2, you probably have some tough choices ahead of you. And i can't believe you are holding onto the house in Texas. As somebody that is still grinding at a 9-5 and takes home less than your exoenses and has only 1 house it is hard for me to wrap my head around your conment in the beginning where you hope normal people can relate. Median household income in the US was just under $75k in 2022. You aren't warren buffett but you are a few steps beyond 'normal'. And i doubt many 'normal' people are tuning in here, anyway. Normal people are scrambling for a new job when they get laid off. You have worked hard and saved and put yourself in a position to take control if your own life at a young age. That is not terribly normal, either. At least not from what i have seen. Thanks for sharing your ongoing journey. You should be proud of what you have accomplished. And forget normal.
I started from nothing like most people who would consider themselves normal. I think it comes down to mindset. I guess it’s not normal to work 6-7 days a week and live below your means, but I definitely consider myself normal. Well now that I think about it… I’m wearing a 15 year old shirt. I guess I’m not normal by most people’s standards.
When u say u moved to Utah to be close to ur parents does that mean ur family is living with ur parents or u also have a house in Utah as well as Austin?
Thanks for watching!
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Great video. I was laid off Sept 2023 from a nice 100k+ job. I decided I didn’t want to go back to work so learned everything I can about selling covered calls and also some high yielding dividends. I’ve been doing well so far. Only had an initial 100k saved in investments and have made enough to live on and even grown my portfolio since then. Fortunately I have no debts, just some low monthly bills that are less than $1,000. Just sharing my story so others can know it is definitely possible. I’m 52 years old now. Best of luck to everyone :)
Thank you for taking the time to share this! One day at a time...
I understand that guilty feeling. I haven’t told many friends that I am retired.
Yeah its real.. I learned you cant just flip a switch and that goes away.
Agree, I’m 47 and retired for about a year now. All my older siblings and friends are still working with no end in sight. I keep saying I’m thinking of getting another job… but I’m not lol
Why the guilty feeling? If you tell your friends, you may be inspiring them.
Guilt brag lol
Im upper 30s if I retire at 55-60 if I can I won't feel bad at all.
I tried call and put credit spreads in early 2023 and did well for about 3 to 4 months (up about $15k). Then, not knowing when to quit ended up owing my margin accounts about $15k. I still owe around $8,500. I never had the large cash position to buy cash secured puts. I have done covered calls. I would be interested in seeing videos on this. You don't have to be an "expert" just over what you have been doing and your reasons for your choices.
Yeah you have to be careful with margin. I’ll create some videos in the future to show how I do it. I’m very conservative with it.
Thank you for being open and real with your experience. I turn 29 this year, and videos like this give me insights I would otherwise not have access to for future planning and prioritization.
Glad it was helpful!!
I would love a video showing your covered calls and how you do it!! I have no idea how this works.
I’ll make some videos on it in the future. It can work very well.
would love to hear about the options income in a video, thanks
Good to know. I'll look into making content on it in the future. I'm not an expert, but I can share from a newbie perspective how to get started and what to look out for.
I second that
Here is the first, most important, never ever to be broken rule. Never, ever, ever, sell a naked call.
Thank you for providing so much transparency on this subject, early retirement is the goal for many but there isn't much discussion about when you reach financial independence.
I spent hours and hours watching and learning from other people's experiences. Glad you enjoyed the video. Thanks for taking the time to comment.
Please share options route in the future video. Will be very interested in that. Thank you very much for the video! Also how is taxes work for all your dividends? Is that account into the budget as well?
Yeah because we don’t make too much our tax liability is low. I’ll talk more about options in the future
I would love to learn more about cash secured puts and covered calls.
I’ll talk about it in a future video
I thoroughly enjoyed this video. I'm in the same boat. I never returned after Covid. I was 50. I realized my dividends were enough to pay for the bills. Now 4 years since, I'm a better person. I don't get bored. Stay active.
That’s so great to hear! Yeah I’m trying to stay busy both mentally and physically. Thanks for watching!!
Hey Jake, I’d love to hear more about your options strategy too. I’m just starting to dabble with cash secured puts and like to get as much info as possible. Thanks for sharing your journey!!
Hey! Sure I can talk about it more in future videos.
Your TH-cam channel is part of your purpose. These videos are going to impact a lot of people.
I been building my portfolio I am just buying and building not selling, I keep telling everyone about trying to retire early I told them it’s all about mindset, I bring my own lunch to work now instead of spending $15-20, was on vacation this week instead of us going in a family vacation we skipped out and I actually went in to work 3/7 days of vacation for double pay to buy a couple extra shares
I’m not done with your video yet but there’s just so much I could say about this video. Can’t believe it took me this long to watch it. I highly resonate with your thoughts on being laid off and not having closure with some things and feeling robbed. While I wasn’t laid off, I recently listened to a podcast episode dealing with a really bad layoff situation and the feelings of resentment and lack of closure. For me I totally get what you meant by feeing like you weren’t as productive and that being a big change. I didn’t have a glossy title with a high income. I was just a manager at a restaurant and went from being influential, being the guy who made decisions, and being a role model for some, to not having a job. For me, I gave many months notice and then I left. There’s some resentments I have that came as a result of all that, but overall I’m happy. I actually saved entirely TOO much money and was actually not spending as much as I thought I would, so I was able to allocate more for stocks. I have since returned to work part time and as I said on another video, I reached barista FIRE. I am very fortunate that I have yet to touch my base of wealth and actually my wealth has increased around 8% despite me not having a job and then going to part time work. Do I miss the higher paychecks? Sure. Do I miss the stress and the hardship of not feeling recognized and being super stressed? Nope! I like my current financial state. 🙌
This is spot on!!! Exactly!! I’m glad that there are others out there that can relate to what I’m saying. I bet you’re loving the barista lifestyle now. I really enjoy it! I do miss being “the guy” but also don’t miss the stress.
I was unexpectedly laid off in December 2023. I did the exact same thing. I was preparing to retire, needed another year or so, and I too made up the difference with options. I was experimenting with them as far back as September, then had to finish building the plane mid-flight and dumped what I had free into it. Been making about the same amount as you on them.
Difficult to make friends, tend to keep to myself, all these things i relate to you bro but yet you are here to help others
Yea it was not easy making the channel when I did but I’ve grown into it. Thanks for watching!
Is your dividend portfolio on m1 in a taxable account?
If so can you make a video about how your taxes were in 2023 with regards to jepi/jepq since u have so much in those 2 etfs?
Yeah this portfolio is in a taxable account. We have a Roth IRA/HSA as well that coasts in the background until we reach 59.5. We won't pay much in taxes because of the income it generates. In fact you can pay zero taxes in early retirement with you dividends up to a certain amount. I made an entire video on this which I think will help you understand it more: th-cam.com/video/9_LX-ayAzo0/w-d-xo.html
@@DividendGrowthInvesting even if they aren't qualified dividends?
@@jeancarloferreira9770 yup!!
Yes, it would be good to get your perspective on how to generate the extra monthly income selling covered call options. Seeing how much you would have to use to generate an extra $3500 to 10k monthly.
@@maneugeni I’ll add a few options income videos in future videos. It definitely helped us retire earlier
I’m so happy for you! I know it didn’t happen the way you planned, but the universe will always give you what you need and what you can handle. Stay the course. Life is a marathon, not a sprint.
Appreciate you saying that! Everything will work out.
When I retire I am getting a part time job at a grocery store with % off for employees, make a little to supplement and get cheaper stuff.
Now that’s a cool idea!
Interesting video, thanks! From my own experience, if you move to a new town in FIRE, one of the biggest problems is making friends, because so much of who are friends are, are either those you had gone to school with/grown up with or people you work with. But, if you live someplace without old friends or a job, it is much harder. The second is if you are an American, healthcare costs. Every state is different, but it is not simple, easy or cheap, from my personal experience. But, if you can sort those kind of things out, FIRE can be a blast! Wishing you all the best!
You are spot on. The first thing I told my wife when we moved from Germany to the US. America is great if you have money. If you don’t it sucks here.
That’s a great share about where you put your time because doing TH-cam videos takes more time than most people realize.
I don’t think you should look at it like that.
You can be thankful you had been preparing to leave so when the unexpected happen, your family was sitting financially better than most.
Happy to hear you’re doing well Jake. I think making a video on how to do options would be helpful, hard to find educational content on that on youtube.
Yeah I’ll make some videos on it in the future. Thanks for watching!
Jake, while listening to the part when you said I wanted to be the one that pull the trigger, I want to say "I quit." I believe anyone of us who work a job could relate to that. Man, what a good feeling would that be. I just am not close to that at all.
Yeah I was dreaming of saying that for years!!! Things don’t always work out the way you plan them - but I’m so happy we are in the position to do what are doing now. I appreciate you taking the time to comment this!
Great video, Jake! Enjoyed hearing more of your story and loved the scenery shots of northern Utah. Beautiful!
Hey!! Thank you!!
Options (selling covered calls) are very intersting to me...
I’ll talk about it more in the future
Thank you for the update! May I ask how much are you putting aside for option trading for the $3500 monthly premium income? Or are you using margins?
I’m using a regular balance and a margin balance. I started with $300k and focus on very conservative deltas.
Little over a year ago I moved to UT for work, what a beautiful state. Not sure I'd retire here but it's growing on me...I'll be retired from the military in a few years in my 40s. The plan is to grow the real estate portfolio and work that part time.
UT is a great place to own rental properties. The market has changed a lot. My parents always talk about their challenges 20-30 years ago. A lot has changed these past few years.
Thanks for sharing your knowledge, humor and Personal stories. I would love to begin selling options and learning groom your journey!
You can do it!
Yes. You have to be careful. With more time, there’s more time to spend money.
But you don’t retire from building wealth.
Loved the video and alot of what you shared!! Thanks for the vulneribility, I do have a question about wanting to know more about put options like you mentioned. I have never heard of that before and would love to hear you go into depth on it!!
So glad that you enjoyed the video!! I really appreciate you being here! I made a pretty in depth video on cash secured puts. This video might help you out: th-cam.com/video/xkGiVg5MjHk/w-d-xo.html
That is wise counsel.
Lean Fire is limiting.
Barista Fire still gives freedom to choose.
I had a similar experience. I retrained into an entirely different field and I had this whole Keyser Soze scenario planned for when the day came that could finally leave my horrible job in a horrible field but it just fizzled out into a slow progression from one field to the other. I was devastated 😂😂
I reinvested my money into my re education but there are times I wish I'd invested that money somewhere else and sucked the mop for the last decade and retired this summer at 50. Hindsight is always 20|20 I suppose
Yeah… well that’s life I guess. At least you didn’t lose your sense of humor.
What a amazing story, I am late to investing and I value all the information you share with us all. I am 46 and hope to achieve fire at some point to decelerate my fast lifestyle. Thank you !!!
Better that you start now than later! Glad the video was helpful!
Thanks for telling this. Here is something that maybe of help for finding purpose after retiring, I havent retired yet but what i plan to do is get chickens and a farm
Yeah I’ve always wanted a homestead up in the mountains.
How investing looks like 2:00 resonates with Nancy
Thanks for sharing Jake. Great to hear your insights.
I’d be interested to hear about your options experience.
BV
I’ll make a few videos on it in the future. Thanks for watching!
I need to learn how to option income, times are tough. Would be nice to teach us the basics on this!
I will talk more about it in the future. Thanks for watching!
This is such a good share.
I believe this is the reality most want: more time with family
This is great, thank you for sharing your story. It's pretty wild how life doesn't go the way you plan but it really sounds like things are working out for you and your family. Curveballs sure suck!
Yeah it wasn’t what we had planned but still making the best of it!
What a great video. I would love to see an options video🎉. Congratulations 🎊 on your retirement. Although it wasn’t the way you wanted it, nonetheless you were in a position to do it.
Thank you so much for saying that!!
Thank you for sharing some of the more vulnerable aspects of your life with us! I think many of us would appreciate hearing about the use of options in your portfolio.
I myself have some experience with options, but I would love to hear from the perspective of someone who is using them for income
Glad you enjoyed the video! I will talk about options more in the future.
Great video Jake, thanks for the inspiration. I work in public tax and barista fire is the goal. Eventually only need to work Jan-April and then travel+chill the rest of the year. Keeping the job to subsidize will let me semi-retire much earlier.
That sounds like a great idea! The best part is it keeps you busy during the cold months so you can travel during the warmer months!
I am super late to the party, 45, but have to start sometime. One thing I haven't understood about everything I have learned is; how you truly retire? Do you take some or all of your dividends and not reinvest some or all or just a percentage? Cause would think you would still want to grow your returns.
I'm interested in learning about your options strategies. I've been wanting to dive into it but can't wrap my head around it just yet.
Sounds good. I’ll talk about it in future videos.
I’d like to see options trading content from you.
Yes.
I’m in control of my time but I do a lot.
There are many needs.
Wouldn’t a big drop blow your CSP out of the water and you can’t sell CC anymore? Options income can’t be guaranteed and there will be many months of no income
A lot of pros and cons for sure. I’m pretty conservative with how I do it. I’ll talk more about it in the future.
Hey Jake, glad to know you doing well and obviously the challenges you’re going through will help all of us working harder and hoping for a smooth FIRE movement, by the way I’d love to learn with you on that options income.
Hey! I’ll talk more about it in the future.
The transparency was super fresh and encouraging, been following your journey for a while now! I was actually asking myself midway through the video "I wonder if he's thinking about selling options..." haha. I think your viewers are the perfect audience for a video on how Jake added options to his FIRE income.
Hey! Thanks for saying that! Yeah the csp and cc can be a great way to add income to your portfolio with a smaller account balance. The income can vary but there is a lot of potential! I’ll talk more about it in the future.
I think you are a great explainer, you should teach us option premium investing.
Hey! Well thanks! I’ll talk about it more in the future.
What’s the thesis with buying dividend growth funds such as DGRO? Eventually stop the Drip & live off the dividends?
Exactly! Instead of selling your shares, you live off the income your portfolio produces.
@@DividendGrowthInvesting But won’t the investment return less if you don’t drip? Because since the stock will drop by the amount of the dividend being paid?
Amazing video, Jake! It literally inspired me. Your journey and mine are extremely similar and this is exactly what I needed to continue on my own F.I.R.E path. Keep up the good work!
Hey there!! So glad to hear that! You got this!
I too plan to fund a part of my retirement via dividends ....
Great choice
One of the things that worry me is retiring fully with nothing to do. I'd be bored out of my mind. I don't think i need more traveling, more frivolous spending, etc, I'm fairly content where I am in those regards. I guess the optionality is what I want, but i couldn't see myself just sitting home without some sort of work, even if it's free work...
Yeah then you want to focus on barista or fat fire
What kind of returns are you getting annually in your options selling account?
Thanks for sharing your story 🙏🏽
I didn’t calculate it for the entire year, but if I take my average balance for the year end the earnings for the year, it was around 20%
@@DividendGrowthInvesting thanks for the reply! I’m definitely interested in the options wheel strategy and love hearing real examples of people implementing it.
I’m a financial coach and $9,000 is a realistic number but most people don’t know that. It’s good that you are sharing your personal experience.
Bro, my girls are 3 and 1. All I want is to spend the rest of my life traveling the world with them. Current net worth is around $500k without the house we live in. What is the next step for me?
Take a look at travel hacking. We’ve been doing that and it works very well. You may need to focus on lower cost of living areas like South America or Asia.
Thanks for sharing your updated story.
Have you thought about government healthcare? When I worked part time for tips, it was under $50 per month, but it would cost me money during tax returns. For 4 people that would be $200 per month unless it went up, which is very possible. Just a thought. It would not be the best insurance, but might change your finances or at least something to look into. Can you do an options video at some point. I am curious. I typically stay away from options/puts and other stuff I don’t understand, but I respect your financial knowledge so I am curious. Thank you for the video!!!
Hey! Yeah I’ve looked at different healthcare options. Nothing out there is perfect. All come with trade offs. I’ll make options videos in the future. It’s not something I wanted to do but it’s really helped boost our yield.
Would 100% love to see videos from you on options income
Sounds good. I’ll talk about it in the future
Hey Jake! Great to hear your story!
Can you make a video on puts and calls?
Hey!! Yeah I’ll make videos on it in the future. Thanks for watching!
I recently "dropped a bomb" to my boss when at the end of my shift left my retirement letter at his desk. He wasn't very happy about it because left me multiple voicemails on my phone but he was an A-hole anyway. I'm glad I have my time back. No more stuck in traffic for an hour just to get to work. Cheers Jake, you have a beautiful family!
I bet that was an incredible feeling!! Thank you for saying that!
Hi Jake, like you ive just recently retired in malaysia(i'm a malaysian) at the age of 49 last year. Like you I've been doing options for years prior to that. However, I kept seeing poeple saying how dangerous and zero sum game it is. Thus far, Ive been making good gains albeit some capital gains cap due to the nature of options. If you make more videos about options, can you eleaborate more on this expect of options (especially as a zero sum game point of view).
Really appreciate your 101% efforts. Keep doing what you do best and thank you.
Cheers!
Hey! That is so exciting that you got to retire early! I've heard great things about Malaysia! Yeah options for income comes with both pros and cons for sure!
I have reached the lean fire level for my personal situation but keep working as yes, I feel I need more of a safety margin, and just working a couple of years more would increase my networth rapidly thanks to compounding. I do have a question about drawdown plans though. If you plan on living on dividends without selling stocks, do you withdraw the money in december the amount you would need for the whole next year, or do you withdraw every quarter, every months? I'm asking because dividends get paid irregularly some even semi annually...
I withdraw the money as the dividends are paid to the M1 savings account. I do a transfer once a month to my checking account. I don’t worry about withdrawal strategies because I’m just living off the income not selling shares.
if you dont mind how much do you have invested in your portfolio which you are selling options? you really should make a video showing some of your trades. it would help alot of people out. ie. deltas you look for , strike price date (ie 30-45 days) selling CSP on just the blue chip stocks? stocks you would want to own forever? that way if you get assigned you have no problem selling covered calls. thanks
I started with around 300k Its grown but I use around 300-400k own capital plus margin.
Nice pivot, Jake! Thanks for sharing your adventure. I really appreciate the details.
Glad it's all coming together for you and your family. It not the way you wanted and it's not as fast as you wanted, but you're getting what you ultimately wanted. That's key!
Congrats on seeing the light at the end of this.
I'm glad your wife will get to join you and not work soon. It is not as much fun having your significant other still working. I'm looking forward to when my other half retires.
You guys are going to have some great road trips with your son until school starts!
Thank you for saying that! Yeah I’m excited for her to join me! We are considering all of our options. We may even try to homeschool our son. We have a few plans around that but flexible depending on how our lives change these next few years.
I hope you’re showing options trading please
Yeah I’ll touch on it here in a few weeks. Thanks for watching!
Can you make videos about Option Income?
Will do!
Thanks for sharing about what you bring in from TH-cam.
I’ve been thinking about growing my TH-cam channel.
Thanks for being transparent about your situation!
Thank you for sharing your journey. It is very educational and inspirational!
Glad you enjoyed it!
hey Jake, is there a video explaining your method to invest in individual dividend stock?
I’d recommend watching this video: The Simple Path to Wealth with dividend investing (Core and Satellite Portfolio)
th-cam.com/video/iEwAipBKPUo/w-d-xo.html
@@DividendGrowthInvesting thank you so much, praise from Brazil!
I came across a video and I like it .do you have any advice for a person starting out.. I'm just starting out and I'm trying to look for a good dividend stock to start with any advice or suggestions to start looking into
I’d suggest watching this video: Planning for early retirement with dividend investing
th-cam.com/video/cJffRqYQpqo/w-d-xo.html
For sure, this is such a really good authentic share. This will help a lot of people.
What's your throughs on if someone wants to invest solely in SCHD in their ROTH IRA but have other investmentsin differentaccounts?
Could work well. I like that you are thinking about all of how all of your accounts contribute to your goals. May make sense to consider an ETF like DGRO to get a bit more growth and more market participation (exposure to the overall market).
Please make options video
Sounds like a plan. I’ll do it in future videos
Good on ya Mate. Thanks for sharing.
Selling Options is a great skill to have. You don’t need as much principal to produce real cash flow to cover one’s expenses.
I think the Fire movement would benefit from it being discussed more. However it’s not for everyone. I think a passion for the markets helps.
I’m doing this and hope to retire to an actively managed portfolio. One can also invest some of the option premium to passive ETFs and get the best of both worlds.
Yeah there are a lot of pros and cons that come with this. I like it but it was never my goal when we started to pursue fire
I wonder if I can do it too. I only make $100/yr ?
It comes down to your expenses. If you have higher expenses, it makes it more difficult to retire early. Also retiring early can mean something different for everyone. I chose Barista FIRE so I am still working part time, but I retired from my 9-5 job.
What a great video. As always, you continue to make me think about things that I wouldn’t have considered otherwise. Trying to enjoy the journey as much as possible but I am so curious what life will look like for me on the other side when I do approach that time. One thing is almost certain….it will most likely be much different than I currently envision it.
I am curious…what do you do with your home in Austin while in Utah? Do you rent it out or keep it available so you can come and go whenever you want? I can see it being another source if income but also understand the freedom you’d have by not renting it out or BnBing it.
Hey mike! We are currently living in both with no plans or renting it out. If things change for us then we would consider renting it out. It’s great having both places to call home.
Time in the market beats timing the market
Yup!
Did you invest in a Brokerage taxable acct? I just can't seem to figure out how you could do this with a traditional or roth IRA. Can you expand?
This is with a taxable account. I also have a roth IRA but that coasts in the background until I reach 59.5.
Im genuinely curious about your options strategy. How much capital you'd recommend to start. How you would go about narrowing down which stocks to go in on. Expected returns. Would be really interesting. Definitely a deviation from the normal content. But with a huge disclaimer for those who arent as familiar. Because you can get into big trouble using options.
Yeah I’ll share how I did it. It’s not very difficult. I’m pretty conservative with how I do it. The income could vary greatly on how you do it. There are a lot of great ways. I’ll explain how I do it and why in a future video.
For me I would retire only when I reach my portfolio to at least 2 million or 1.5 million to secure my dividend income amount that I need for life.
Yeah that’s a good strategy
Your videos are very useful and I really appreciate that they are authentic as well. Thank you! Also I've got a question.. If I have a horizon of 20+ years and I want to invest in dividend growth ETFs so one day I can retire from that portfolio would your advice be 50% SCHD and 50% DGRO or something else?
Yup! Watch my videos on the simple path to wealth with dividend investing.
The good thing is, you were already preparing.
Hey Jake, I’d be interested in seeing a video on your options strategy for income. I plan on doing this in retirement only in my Roth. A few questions: what are you selling? Exp date? What’s plan B if the market tanks and you have to hold the bag (can’t sell below cost basis question). And can you compare it to just buying jepi and holding? Thanks for all your content.
So, I’ve been in control of my time for a while. I still get up at 5am but I feel guilty for having so much more time freedom than most. I have to actually tell myself I don’t have to feel guilty. I made a lot of purposeful action steps that were not easy.
Thank you! A nice dose of motivation/reality
Thanks for watching!!
That’s a great point. Expect the unexpected
Thanks muchly Jake for the very real world take on your experience! I'm 71 retired and my wife is 55 still working. We live in Canada; own house and have "0" debt and maxed all of our tax advantaged "registered" accounts. Our only son is on his way on the career path; so no more expense there. What I wanted to say is thanks for your Covered Call videos; we are building a portfolio that has about 15% of those and just added JEPI and JEPQ. Our portfolio is about 60% the size of yours with a diversified mix of stocks, ETF'S, and small allocation of bonds producing $25000/yr. income tax free. Without debt, except property tax, groceries, and travel spending we are very close to FIRE. Thanks to our public health system we don't have heavy premiums to pay, however our Canadian Healthcare is deteriorating because of this! Thanks again for showing how the analyse CC ETF'S; it's been a big help!! The Canadian CC ETF'S that I have been using are BMO's; ZWA, ZWH, ZWC, and ZWG. Cheers, Willem 🙏
Hey! Those covered call ETFs can be a great way to boost your income! I’m jealous of your healthcare even if it’s starting to get worse. We have to pay a lot in the US. That’s how they keep people working in America. I’m happy that you are so close to reaching FIRE!
Inspiring. Thank you for sharing partner 😊
Thanks for watching! 🙌
I resonate to your story SO much! Especially the part about leading Gen-Z 😂 thanks for sharing
Lol 🤷🏼♂️🤷🏼♂️🤷🏼♂️🤷🏼♂️🤷🏼♂️
I would love to see an overview of what you do with options.
If your expenses are that high, and Lucas is only 2, you probably have some tough choices ahead of you.
And i can't believe you are holding onto the house in Texas.
As somebody that is still grinding at a 9-5 and takes home less than your exoenses and has only 1 house it is hard for me to wrap my head around your conment in the beginning where you hope normal people can relate. Median household income in the US was just under $75k in 2022.
You aren't warren buffett but you are a few steps beyond 'normal'. And i doubt many 'normal' people are tuning in here, anyway.
Normal people are scrambling for a new job when they get laid off.
You have worked hard and saved and put yourself in a position to take control if your own life at a young age. That is not terribly normal, either. At least not from what i have seen.
Thanks for sharing your ongoing journey. You should be proud of what you have accomplished.
And forget normal.
I started from nothing like most people who would consider themselves normal. I think it comes down to mindset.
I guess it’s not normal to work 6-7 days a week and live below your means, but I definitely consider myself normal. Well now that I think about it… I’m wearing a 15 year old shirt. I guess I’m not normal by most people’s standards.
@@DividendGrowthInvesting I call that a good thing 😁
When u say u moved to Utah to be close to ur parents does that mean ur family is living with ur parents or u also have a house in Utah as well as Austin?
Stay in a place in Utah as well kept our house in Austin. At least for now
R u paying rent or mortgage on ur house in Utah?
that slapping lol. your kid remains very cute. Thanks for the insights, Jake. A video on the options could be very interesting.
He has so much energy! We have a lot of fun with him. Yeah I’ll look into talking more about options in the future.
ZIVB dividend yield is 24.15%
Welcome back to Utah!
Glad to be here!
We need a BHIG etf.. This guy's smokin ol' Nancy.😉
Lol