Re: Covered Calls
"So what would you recomend I do at my annual meeting later this month?"
xprinter, if you haven't had your annual meeting yet, then you need to find out (if you don't already know) if the 1% is in addition to commissions, or in lieu of commissions. Also, tell your broker to provide you with your personal rates of return for each of the years that you have been with the broker. Make sure they don't include any deposits as "returns" and that they take out the fees that you've paid. Then compare that to what a simple, low expense, strategy would have provided. You can compare it to Scott Burns' "Couch Potato" strategy (50% bond index / 50% stock index), or even just investing in a low expense balanced fund (like Wellington). If your broker isn't giving you better returns for the risk that you are taking (and the odds are very good that he's not), then ask why you should be paying those high fees.