Originally Posted by
UncleSam
Are you hitting the 12% annual mark every year? Haven't heard anybody bad mouth this method but it does sound like you have to be very actively involved.
That has been my overall average cash flow yield per year. Some years have been slightly higher than that and some have been slightly lower... like plus or minus a couple percent. I've been very pleased with the consistency and feel this is one of the greatest benefits of the method. In 2008, when the market was melting down big time, I had a 15% yield in my 401k and an 11% yield in my DC Plan. I have never realized any losses.
"Actively involved" is not the way I would classify my level of involvement at all. I have 5 accounts that I manage with the method (including my DPSP/401k and my DC Plan). You only trade this method one day each month. It's on the Monday following the third Friday (the third Friday is the day option contracts expire). It takes me about an hour on Sunday evening to do bookkeeping to get ready for trading on Monday. And then it takes me about 1 1/2 hours on Monday to actually run through the checklist and do the trades... followed by about another 45 minutes of bookkeeping to wrap things up. So all totaled, my Oklahoma public school education tells me this is a grand total of 3:15 per month. I like that I don't have to do anything else or even pay attention to it the rest of the time.
The method is not perfect. There's no such thing as a perfect investment method. If you consider it, just make sure you have a good, solid understanding of what it is, what it is not, and whether or not it fits in with your objectives, tolerance for risk, and temperament. I think Snider's web site does a pretty fair and balanced job of presenting the pros and cons. There's a lot of material there and you should be able to find what you need to help you figure out whether or not it is right for you.
Hope that helps.