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Subject:  Re: May want to re-think traditional allocations Date:  9/26/2012  3:36 PM
Author:  joelxwil Number:  70963 of 88511

Interesting sales pitch. However, I have never heard of an IRA which allows the purchase of naked call options. Perhaps there is such a thing, but I doubt it. Therefore you will have to pay taxes on your gains and that is not mentioned in the sales pitch. Still, it might work, but it really depends on the pricing of 2-year options. You will have to pay a premium upon purchase, so the stock or index fund has to go up enough to make up for that, and that puts you at an initial disadvantage. After all, the stock can go up, but you can still lose money on the option.

And "Leveraged income residential real estate"? Great, but it certainly requires timing, as people who bought a few years ago know.
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