r/investing
As someone with 300K USD, reaching 1M is almost inevitable.
Author outlines a plan to reach $1M via cash-secured puts on MU and a diversified portfolio, supported by steady job income.
- Selling cash-secured puts on MU generates substantial monthly premium income.
- Multiple income streams including salary and investments provide a strong safety net for capital recovery.
- The strategy relies on highly unrealistic assumptions like a $1000 strike price for MU, indicating flawed financial planning.
- Getting assigned at $1000 and facing a drop to $800 would result in massive immediate unrealized losses.
300K USD Capital
\-100K USD cash on standby and sell cash-secured puts. For example, selling MU puts 1 month out at strike price 1000 can net me around 7-8K USD a month. That's crazy good money. If I get assigned, I have sufficient cash to buy the MU shares.
\-200K Discretionary portfolio. I pick stocks and options. Make money from trades and investments.
If market continues on the bull run, I continue to hold and make money. I make regular income from selling puts + make capital gains from my buy and hold positions.
If market crashes, I quickly cut all my positions. Although I will get assigned my MU shares at $1000, let's say MU crashes to $800. After cutting my discretionary portfolio early, maybe my 200k turned into 150k. I then use the 150k to buy the dips and crashes. Hold until it comes back up.
Finally, I still have a job that pays me 70K per annum. I still have savings. Even if my investments get hit badly, I can literally just grind up and rebuild my capital.
The way I look at it, reaching 1M is almost inevitable because I have so many different income flows coming in.