Maximizing Wealth

Maximizing Wealth
If you're looking for maximum return, try this portfolio:25% SSO 25% DDM5% Short Naked Puts VTI/IOO/EWJ/VPL (I think these might go higher). A naked put occurs when you have not shorted the underlying stock. I recommend naked puts over covered puts.5% Puts on Europe or China ETFs (I think these might be in a bubble, especially Italy).Necessary Deposit with Broker to cover losses (invest either in T-Bills or balanced funds)40% VALIX or T-Bills (you must do a cash basis short put to avoid a margin call; it means that you must keep on deposit the maximum loss for the short put which is company or market bankruptcy). Writing naked puts is bullish. While your only income is premium income (not the stock appreciation), options are only exercised when the price of a put falls below a strike price or when the price of a call rises above the strike price.or if in a retirement account:40% SSO40% DDM20% VTI or VTI covered call (your income portion of the portfolio). Covered call writing are the only options allowed in a retirement account. Similar to an uncovered put, but covered calls are bearish as you're giving up any potential upside in VTI for premium income. If you wish to do another covered call after the first one is exercised against you, it could be a lot more expensive to buy, thus you're bearish (betting the stock price will fall). In order for a covered call to be useful, you must own 100 shares of stock per contract. If you want to be fully invested in the market, this is how I'd invest:25% Vanguard Total Stock Market Index (VTI)10% Vanguard Small Cap Stock (VBK)10% Vanguard Mid Cap Stock (VO)10% microcap stock (PZI)12.5% Japan (EWJ)15.0% Vanguard Pacific Index (VPL) - 27.5% total in the Pacific region12.5% Vanguard Europe (VGK) - 12.5% in Europe (consider it to be a bubble)5% Emerging Markets (VWO or EEM) or35% Vanguard Total Stock Market Index (VTI)10% Vanguard Small Cap Stock (VBK)10% Vanguard Mid Cap Stock (VO)20% Vanguard Pacific Index (VPL)20% Vanguard Europe (VGK)5% Emerging Markets (VWO) or 5% microcap stock (PZI)If you're somewhat bearish in the market, try this portfolio:20-30% AGG/LQD/TLT40-50% VTI5% VO5% VBK10% VPL10% VGKor25-30% FGBLX25-30% FBALX10-20% VTI10% VGK10% VPL5% VBK5% VO