Cash Flow

Mary Investor is a retired individual. She has savings of approximately $1 million, half of which is invested in stocks and stock mutual funds. Mary has cash flow needs and is invested in government bonds, municipal bonds, and corporate bonds. She would like to generate some additional cash flow and is considering putting more of her money into bonds or possibly some higher dividend yielding stocks. She asks her financial advisor, who is also her CPA, what she should do. Her advisor makes the following suggestion: She should take $200,000 and invest in the Optima Portfolio strategy. The premium income generated by writing covered calls, which is taxed as Short Term Capital Gains, can be offset by Ms. Investor’s capital losses. Until those losses are all used up, Mary can have a stream of income that isn’t taxable.




Option trading is not suitable for all investors. Investors should read and understand the Characteristics and Risks of Standardized Options.


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The pricing, performance, graphs, and charts are provided by Ticker Technologies, Inc. The information contained herein has not been verified by California Investment Trust Fund Group or by its advisor, CCM Partners, LP, and should not be used for trading purposes. For official Fund prices and performance, please contact the Funds at (800) 225-8778. Past performance is not necessarily indicative of future results and current performance may be lower or higher than the performance quoted. The net asset value of each Fund's shares will fluctuate, as will the investment return and the principal value of an investment, so that an investor's shares, when redeemed, may be worth more or less than their original cost. This sheet must be preceded or accompanied by the current prospectus for the funds comprising the California Investment Trust Fund Group, which provides details about charges, investment objectives, risks and operating policies of the Funds. RFS Partners is the distributor of the California Investment Trust Fund Group. Distributed by RFS Partners 01/2010. Get Started Today: Download an application or call us at (800) 225-8778 and allow us to put together an application package that meets your investment objectives.