InvestEd 2014: Irvine CA

January 2014 Webinar: Asset Allocation

A Different Kind of Collar Part 1

Ask Bob Rankin



InvestEd 2014

Irvine CA, June 6-8, 2014

Irvine Marriott

Register Now!

The InvestEd comprehensive curriculum has over 50 sessions geared to every level of investing expertise: beginner, intermediate, and advanced. Many sessions are new this year; others are updated topics popular with attendees. Topics include choosing companies to study, stock study analysis, sell decisions, financial report analysis, technical analysis, use of software, and much more.

 

Attendees consistently praise the expertise and teaching skills of InvestEd's nationally renowned instructors and their presentations. In addition, these instructors are available outside of session times to answer your questions, discuss stock study candidates, and personally tutor you.

The highly-rated Newbie Program trains new investors and also serves as a refresher course to build confidence of experienced investors when needed. The Friday Bonus Sessions include techniques that encourage attendees to sharpen their computer skills.

A special option for attendees on Sunday morning will be hands-on Google computer sessions in the lab. Daniel Rivera will be leading sessions on Google Drive. Take advantage of these sessions to upgrade your knowledge.

A Sampling of New InvestEd 2014 General Sessions:

 

Getting Started With Stock Rover - John Tonsager

Introduction to Vertical Option Spreads - Saul Seinberg

Retirement Traps and Will I Have Enough - Bob Adams

Mergers, Acquisitions, and More - John Diercks

Tools/Indicators for Selling Options - Mary Ann Davis

How to Decide WHICH Stocks to Study - Don Cassidy

Important Economic Indicators for Investing - Bart Womack

Uncovering Small-Cap Stock Gems - Doug Gerlach

A Pragmatic Approach to Dividend Investing - Saul Seinberg


 

A Sampling of New InvestEd 2014 Friday Bonus Sessions:

Cloud, Mobile, Social - Joe Craig

Windows 8, Touchscreens, and More - Joe Craig

The Inner Geek: Where Are We Heading in 2015? - Joe Craig

25 Apps in 50 Minutes - Saul Seinberg

Google Glass: A View of the Future? - Daniel Rivera

Discount Registration Rate Ends March 31, 2014

The discount registration fee is $389. Registration received after March 31 is $409. Full-time students with a valid school identification card pay $359.

You must register by March 31, 2013, to receive paper copies of session handouts. All attendees receive a CD of the handouts. Register now and save!



InvestEd Inc. Free Webinar

Asset Allocation

Sunday, January 26, 2014

8:00 PM-9:00 PM ET / 5:00 PM-6:00 PM PT

Instructor: Saul Seinberg

Webinar Registration

 

Asset allocation is an investing approach based on selecting investments according to their specific characteristics and type. Examples are growth or value; small, mid, or large cap; fixed income or equity; and industry membership. Using model portfolios deemed representative of InvestEd attendees, this webinar shows how asset allocation works and how to best create and manage a multiple asset class portfolio. The webinar also focuses on rebalancing techniques and tells you about the most important asset allocation question for an investor and its answer.

Register Now to attend the InvestEd Inc. free online investor education webinar. Space is limited.

 

Saul is an InvestEd Inc. advisory director and a conference instructor. A former vice president for education of InvestEd, he teaches at local through national investor education events. With degrees in electrical engineering and law, Saul spent most of his career as a corporate attorney. In addition, he served as an adjunct professor at Albany Law School in New York.

 

 




A Different Kind of Collar Part 1

Saul Seinberg

A recent discussion in the Cool Club, Bivio's online options discussion group, focused on using puts to obtain portfolio insurance. The discussion centered on the possibility of using put options to protect a few highly profitable holdings in an investor's portfolio, should the market take a serious downward turn as the investor feared it might. Given that the overall market has experienced a bullish run in recent months to all-time highs, this investor's concerns appear to be well founded and are shared by many other investors. In fact, the possibility of a market correction has been written about widely in recent trade press articles.

 

In other words, this is not just one investor's concern, as many other investors also are seeking to shield their profits without having to sell any of their holdings, especially those holdings with the highest tax implications if sold. This two-part article will explore several means of implementing portfolio protection for consideration by those having like concerns.

As many option users know, options may be used for several purposes. These purposes are speculation, income, as an alternative to conventional investing, trading, and as insurance or hedging. This article focuses on the insurance or hedging aspects of options. Investors should note that puts have a total downside risk of the premium paid plus any commissions. The put buyer has no obligation to sell the underlying stock if he or she chooses not to do so, regardless of how the price of the underlying stock or the put behaves.

The first consideration in buying insurance to protect against a loss in asset value and/or to protect against a liability connected with use of the asset is to recognize that such protection will have an associated cost. Further, as with automobile or home owner insurance, the premium for insurance in the stock market is determined in part by the size of the deductible selected.

Some investors reject the idea of portfolio insurance for individual stocks or for an entire portfolio, believing such insurance is unnecessary and buying a time limited option is an unwarranted cost. Predicting when the impending market drop will occur is difficult at best. Equally difficult is predicting if the purchased option will be sufficient to offset the actual losses that might be experienced if and when the market eventually sags.

These certainly are valid concerns, since options have a limited shelf life, and the straightforward technique of buying a put option to cover individual stocks in a portfolio can be expensive, uncertain, and often ineffective. On the other hand, many investors do use puts to protect individual stocks, so let's first take a look at this technique, which is called a married put or protective put in the options world, and see how it works.

According to Investopedia, a married put describes an option strategy "whereby an investor, holding a long position in stock, purchases a put on the same stock to protect against depreciation of the stock's price." The full explanation of the married put strategy is set forth in the Investopedia Dictionary.

Assume I own 200 shares each of ABC and XYZ in my portfolio of twelve holdings. These are the two most overvalued stocks in my portfolio, and therefore they have the greatest potential for significant loss. Given my substantial profits in these stocks, I also have a concern about the tax consequences of selling now. So I decide to buy puts for each stock to protect against the possible loss. Note that I have determined via an updated stock study that the stock prices show a fair amount of overvaluation about which to be concerned. For fairly or modestly overvalued stocks, investors have no need or a very low need to buy protection using options. This is an important first step in considering the use of married puts or most any other hedging technique. The key determination, the level of overvaluation that triggers the purchase of a married put, is a factor to be decided on by each investor.

Tune in next month for a continuation of this article. I'll begin by discussing what happens once I decide the time is appropriate to buy a married put on my ABC and XYZ holdings.

Saul is an InvestEd Inc. advisory director and a conference instructor. A former vice president for education of InvestEd, he teaches at local through national investor education events. With degrees in electrical engineering and law, Saul spent most of his career as a corporate attorney. In addition, he served as an adjunct professor at Albany Law School in New York.

 

 




Ask Bob Rankin

Sandy Gallemore

Bob Rankin, "a translator for the technology impaired," separates his website into eight categories, each of which includes valuable information and website links.

 

The Top Twenty on the Ask Bob Rankin website offers a variety of articles that are ranked by readership volume. These articles change each week.

 

The category of Free Anti-Virus Programs includes recommendations for free software to use once the short-term anti-virus program that comes on a new computer expires. Among the popular free programs identified is AVG, a frequently recommended program that offers both a free version, which includes effective protection for the most common virus threats, and a paid version with enhanced protection. A program with similar protection is Avast, which also includes a free version for personal use.

 

The Free Internet Faxing Services category identifies Internet alternatives to using the standard fax machine. Some of the sites mentioned in this section of the website are completely free; others offer free trial periods. FaxZero lets the user send free faxes in a variety of formats right from your computer anywhere in the United States and Canada. A similar program is GotFreeFax, which supports PDF, Word, ODT, and RTF formats.

 

Bob includes a category for Magic Jack Phone Service, an Internet-based phone service that lets us make local and long distance calls over the Internet. The annual cost for using Magic Jack is about $20.00, much less than standard phone costs.

 

Many of us are familiar with "free" credit report offers. Not all ads for free credit reports take us to sites that actually provide free reports. The Ask Bob Rankin website helps us determine what reports are free and where to obtain these. Anyone interested in receiving the free credit report should go to the Annual Credit Report website. Since one report is free each year, and three agencies have the reports, many individuals ask for a free report each four months from a different agency.

If you are a Windows user, you will be interested in the Make Windows Run Faster category. Windows 7 users will want to implement the ideas in the Windows XP article first and then move on to the Windows 7 tips. Included are ideas and instructions for eliminating default services we don't need.

 

Are you interested in taking a college course? Check out the Free Online College Courses category. Offering over 1800 courses online is Massachusetts Institute of Technology (MIT), which offers these free courses in audio, video, and text formats.

 

Through Open University, we can enroll in undergraduate or graduate classes in business, arts, history, health, technology, and more. Economics, statistics, and biology are among the course options at Carnegie Mellon University.

For additional online education resources, read John Tonsager's two-part article in the November  and December newsletters.

 

Are the ads for viewing free satellite TV on my computer for real? Ask Bob says the answer is no, these ads are either a come-on or a scam. On the other hand, you can get free satellite TV programs on your computer, but you need a satellite dish and a "free-to-air" receiver box. In addition, an Internet-connected computer offers many free TV broadcasts from around the world. Check out the links to websites of popular TV networks and websites such as Joost, Hulu, and Veoh.

 

The Ask Bob Rankin website covers a wide range of interesting computer/technology topics and also includes a free newsletter.

 

Sandy is an InvestEd Inc. director and serves as secretary. She is lead editor and prepares the general program brochure for the InvestEd conference. Sandy, an O'Hara Award recipient, is a charter member and the current president of a local investment club. She has helped form investment clubs, presented introductory investing programs, and taught stock study classes at local and regional events. Sandy is professor emerita, Georgia Southern University.

 




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