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Our Mission Statement:  
The purpose of Self-Made Millioniare is to provide an opportunity for those interested in learning how to accumulate wealth by making small gains, on a consistent basis, over an extended period of time, through the miracle of mathematical compounding with the information and skills necessary to do so.  Our objective is to generate a 15% annualized rate of return on total account capital allocated to the Tracking Portfolio which will be used to measure and display the level of our success toward achieving this objective.

THE MIRACLE OF MATHEMATICAL COMPOUNDING

If you start with $0.01 and double what you have every day, on the 31st day, you will have $21,474,836.48!

If you begin investing in a Roth IRA at age 25 with $3,000, add $3,000/year and earn a 15% annualized rate of return on your capital, when you are 65 years old, your account will be worth $6,941,452.20!  Since withdrawals from a Roth IRA are tax free, continuing to earn 15% annually on this account would provide a tax free income of $1,041,217.83/year for life; without ever touching the principle!

If you wait until you are 30 years old to start, but save and invest under the same scenario, at 65 years old your account will be worth "only" $3,439,563.61!

During that five year period, there is only $15,000 that you spend instead of investing; but, it makes a difference of $3,501,888.59 in the final amount you have at 65!

By applying the miracle of mathematical compounding over a lifetime, everyone should be able to attain great financial wealth for their own retirement and live in the manner to which we all aspire.

It will not happen if you never take the first step!  Don't delay, start today!

See and experiment with the "Miracle of Compounding" for yourself.

             COMPOUND INTEREST CALCULATOR

THE GUY IN THE WHITE ROLLS ROYCE

In 1982, on a late summer afternoon, I was walking through a parking lot when I noticed a white Rolls Royce turning into a parking space up ahead of me directly within my existing path.  Not being a person hindered by a shy and withdrawn personality, I timed my progression to reach the car just as the driver was exiting the vehicle and reaching the rear of it as I passed.  Being in the south, when eye contact was made, we exchanged the typical courtesy greeting of southern strangers with a smile and "How are you doing?"

Not to let the opportunity escape me; I immediately followed with: "Excuse me, could I ask you something?"  I did, of course, receive a positive response (IT WAS IN THE SOUTH!) and followed up by asking how someone was able to acquire enough wealth to drive a Rolls Royce.  The gentleman to whom I had directed the question turned out to be named Ralph Curry and he responded with a statement that I have never forgotten.  Ralph looked down at me and said: "Virtually no one gets rich overnight; everyone should get rich in a lifetime."

My financial life was forever changed in a parking lot that day by a simple response to a simple question and it was changed for the better by Ralph Curry, my first financial mentor.

If you have any questions or comments regarding the website or what we do, please feel free to let us know by contacting us at:

 
ken@self-mademillionaire.com 

and we will be happy to respond.  Please keep in mind that we are not able to offer individual investment advice.
Visitors:
THE INVESTING PHILOSOPHY WE APPLY

At Self-Made Millioniare, we do not believe that we are going to pick "big" winners consistently enough to build a personal fortune quickly.  However, we do understand that the largest mountain can be built moving one bucket of sand at a time, if we are simply willing to stick with the task consistently over an extended period of time.

Rather than attempting to "time" the market and hope a stock will move in our favor now, our objective is to find (what we believe to be) under valued companies that provide us with an opportunity for 1.5% to 3% profits in a 30 to 60-day time frame through selling options against those securities.  A return of 1.5% over a 30-day period equates to an annualized rate of return of approximately 18%!  The options we deal with are almost exclusively "coverd calls" and "naked puts".  Under no circumstances do we ever get involved in selling options or buying stock in a business where we are not happy to own the shares at the market prices involved.

A "covered call" option is an agreement between the "seller" of the option (normally us) and the "buyer" of the option that gives the option buyer the right, but not the obligation to purchase shares of the underlying stock at the "strike price" specified in the contract.  Each option contract represents 100 shares of stock for the underlying company.  The term "covered call" indicates that the option seller owns enough shares of stock in the company concerned to "cover" the total shares involved in the transaction.  For providing the buyer with this right to acquire the shares at a pre-determined price, the buyer pays a "premium" to the seller.

A "naked put" option obligates the "seller" of the option to purchase the shares covered by the option contract from the "buyer" at the strike price set in the contract.  If, on the expiration date of the contract, the company's shares are trading below the strike price, the option seller will be required to buy the shares covered in the contract at the "strike price" of the contract.  Since we do not trade options on stocks we do not wish to own, this trade allows us to collect a payment while we wait for the share price to fall to a more attractive level.

We have established a "TRACKING PORTFOLIO" to monitor the performance of the investments made within the Self-Made Millionaire letters.  We firmly believe that the techniques we apply to our investments not only reduce the risk of buying stocks but also provide us with enhanced returns compared to those of someone simply buying and holding the underlying stocks alone.  While most people have always been told that trading options is a "high risk" strategy, our approach seems to result in lower risk and higher profits compared to simply buying and holding the same stocks.  Our overall options trading philosophy is briefly explained in Options 101.

To view past issues of Self-Made Millionaire or the Tracking Portfolio: 
Click Here for 2012.
Click Here for 2013.

ANNUALIZED
TRACKING PORTFOLIO PERFORMANCE

SELF-MADE MILLIONAIRE  
TRACKING PORTFOLIO: 27.08%
(JULY 20, 2012 TO JULY 19, 2014) 


MAGGIE'S MONEY MOUNTAIN
TRACKING PORTFOLIO: 38.47% ANNUALIZED
(DECEMBER 30, 2013 TO JULY 19, 2014)
ACTUAL RETURN 12/30/13 TO 6/12/14: 21.18%

ANNUALIZED INDEX RETURNS
                      JULY 20, 2012 TO JULY 19, 2014

                     DOW INDUSTRIALS:             16.70%
                     S&P 500:                                  22.62%
                     NASDAQ:                                25.79%
WHAT'S IN THE LETTER AND TRACKING PORTFOLIO?

The information and trades presented in Self-Made Millionaire and listed in the "Tracking Portfolio" are actual trades that have been executed in a real brokerage account.

These trades are made using an original capital allocation of $113,172.25 and the 2012 returns shown are based upon that capital amount.  Going forward beyond 2012, the Tracking Portfolio will be measured in terms of Year-to-Date performance for the current calendar year against the opening balance on January 1st of each year AND the Performance Since Inception that will calculate the rate of return against the original capital allocated to the Portfolio.  Both of these measurements of return will be compared to the returns delivered by the major market averages over the corresponding periods of time.  The trades being executed in the account may also apply captial gains from previous trades as those funds become available in the cash balance.

When trades involving the sale of "naked put" options are made in the Tracking Portfolio, the account will maintain a cash available balance at least equal to the exercise value of the trade in the event the account were to be reuqired to buy the shares covered at the expiration of the options.  The return shown for that trade will also be based upon the full amount of the capital that would be required to exercise the actual acquisition of the shares covered.

While many options traders use only 20% of the total capital amount represented by the shares underlying a put option (the amount of "margin" typically required by a broker to back this type of trade), since I strongly suggest Roth IRA's as an excellent way to save for retirement and trading on margin is not allowed in that type of account, calculating the returns against the full capital amount seems to be appropriate.

Always remember, the trades shown in Self-Made Millionaire are REAL transactions that have ALREADY been conducted within our account.  They do not constitute a recommendation to buy or sell any security, they are simply a communication of what we have already done with our own money!

We hope you will find the information presented here informative, educational and entertaining.  To view the past letters and Tracking Portfolio: 
 Click Here for 2012.
 Click Here for 2013.


If you would like to receive email notifications advising when new trades have been executed in the Tracking Portfolio or be advised when analysis work is published on a new security, please click here FOR YOUR FREE SUBSCRIPTION:

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DISCLAIMER
All information presented on this site represents only the opinions of the author.  It is in no way a recommendation to buy or sell any of the securities discussed.  The author is presenting information that is accurate to the best of his knowledge at the time it is written but provides no warranty, expressed or implied, as to the accuracy of this information.  It is the intention of this site to present to its readers a method of trading securities that allows for the consistent generation of profits within a core account.  The trades shown in the Tracking Portfolio and discussed as excuted trades in the Trade Alerts and Updates are actual trades that were made with real funds allocated toward the original funding of the Tracking Portfolio.  This however should not be construed to indicate that any reader would be able to enter the same trades at similar prices thus producing the same results as the author.

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