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When Common Sense Isn't Enough

Every year, this is nearly everyone's No. 1 resolution...

Weight loss.

Ask someone what their New Year's resolution was for 2024, and they'll probably tell you it was losing weight.

But the weight-loss world is radically changing...

If you're old enough to remember the '90s, companies like Weight Watchers and Jenny Craig dominated the industry. In the 2000s, the Atkins and South Beach diets became the latest in weight-loss fads.

Today, it's less about what you eat. Instead, more and more folks are turning to weight-loss drugs than ever before.

It doesn't take a rocket scientist to know that a lot of people in the U.S. are overweight. This comes from a bunch of different things, including sitting around all day, poverty, housing insecurity, processed food, anxiety, and so much more.

A mountain of medical research shows that maintaining a healthy weight will prevent all kinds of bad things like diabetes and high blood pressure. And plenty of common-sense steps can help you lose weight or keep it in check.

If you're a longtime reader, you've heard it all before... Eat a diet packed with whole foods, make sure you're moving every day, and get a good night's sleep.

But for some people, that isn't enough.

One of my colleagues just shared his own personal weight-loss journey. It's something we haven't done before... sharing an intimate story of struggle and how a breakthrough technology was able to save his life.

This also holds the secret to a generational opportunity you won't be able to ignore after you've seen it.

If you have just a few minutes today, I urge you to click here and hear what he has to say.

Now, let's dig into the Q&A... As always, keep sending your comments, questions, and topic suggestions to [email protected]. My team and I really do read every e-mail.

Q: I have a freezer and pantry filled with prepared, and I would suspect highly processed, dinner foods and snacks. They are labeled with the fashionable buzz words: all natural, non-GMO, locally sourced (for the manufacturer), etc. But I would suspect that because of the processing involved they are not healthy. So, are they actually healthy, just not as bad, but not good, or is there no real difference from your standard Nabisco product? Thanks. – T.W.

A: Trust your instincts, T.W.

I get why folks love these kinds of products... They're convenient, don't involve lots of cooking, offer an easy-to-follow diet plan, and are – supposedly – healthy.

Today, lots of companies push "healthy" processed, packaged foods. Plenty of diet-food companies sell pre-made meals or snack foods like protein bars.

Here's the problem... These highly processed foods are often high in either regular sugar or artificial sugars, and saturated fats. Companies market them as high in protein and fiber. While you need both protein and fiber, these types of processed foods lack other essential nutrients.

Now, you might think, "Doc, you said fat is OK." But we know that eating too many saturated fats increases inflammation.

Part of the problem concerning saturated fats is that some types are worse than others. Recent research suggests that it depends on how long the carbon chain is. That's one of the reasons coconut oil has caught on... because it's a medium-chain saturated fat (which is better for you). Processed foods also give you fewer nutritional benefits than whole foods.

For example, lots of protein bars have around 40% (or 8 grams) of your daily allowed saturated-fat intake. An avocado is often demonized for its high level of saturated fats. But you're only getting about 3 grams in one avocado. And you're getting loaded with nutrients like magnesium and vitamin C. Plus, you'll still get some protein and fiber.

I'm sure some readers are tired of hearing this, but cutting out processed foods and eating mainly whole foods is one of the best ways to get healthier – if not the best... whether you're trying to lose weight, improve your blood sugar, or keep inflammation in your body at bay.

Natural sources of your nutritional needs are always better than processed foods.

Using your own common sense is better than one of those "cheater" diets where you buy all its branded products. I recommend going with whole foods and trying something like the Mediterranean diet instead.

Q: We've been using your [Retirement Trader] strategy with good results, but only in our retirement accounts. Is there a way to use it in a taxable account that makes sense from a tax perspective? – T.D.

A: As a reminder, my Retirement Trader strategy involves selling options on blue-chip stocks. It's a fantastic way to earn steady, conservative income, and I'm glad it's working well for you, T.D.

Selling options works especially well in retirement accounts like a traditional IRA, Roth IRA, or 401(k).

In these types of tax-advantaged accounts, you don't have to keep track of the trade's gains and losses for IRS reporting. And you don't need to worry about short- and long-term capital-gain differences, either.

Essentially, when trading in tax-advantaged accounts, the extra capital you keep out of the hands of tax collectors compounds over time. This makes a huge difference in your long-term performance.

However, one disadvantage is that there are some restrictions to trading on margin in an account like an IRA. Unlike taxable accounts, most won't allow you to sell options on margin. You cannot sell "naked puts." (You can still sell what's known as a cash-secured put... in which your potential obligation is 100% covered by the cash sitting in your IRA account.)

As an example of trading on margin, let's say you want to sell a put with a $10 strike price. Recall that one option contract represents 100 shares of stock. So you're at risk of buying $1,000 worth of shares. If you're using a margin account, you often only put up a fraction (typically 20%) of this amount – which is known as the margin requirement. In this case, you'd need to have $200 in your account to open this trade.

The government and your broker don't allow margin because they want to make sure you aren't leveraging your retirement account too much... But you can sell naked puts in a taxable account.

If you're an experienced trader and have a good grasp on risk management – then selling naked options in a taxable account might make sense for you... even with the taxes you'll have to pay.

What We're Reading...

Here's to our health, wealth, and a great retirement,

Dr. David Eifrig and the Health & Wealth Bulletin Research Team
March 15, 2024