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Financial Transparency as of 31MAY2017

One more month in the bag.

music selection:  “Runaway” — Ladytron

ASSETS:

Wells Fargo (taxable): This gained 60 dollars to reach 31,286.  A trivial 0.19% move for the month.  Year to date this account is up 7.39%.

Interactive Brokers (taxable): I gained 5,602 here to finish at 296,143.  That is a 1.93% gain for the month and 9.98% for the year.

Interactive Brokers (tIRA): I added 940 dollars here to finish at 149,406.  The monthly gain was 0.63% and the annual gain is 6.55%.

Checking: Cash on hand continues to climb.  I gained another 208 dollars to bring the total to 11,746.  Monthly gain was 1.80% and the annual gain is 39.12%

Total investable assets finished at 488,851 up 1.41% from last month.  Year to date, I am up 9.28%.

 

LIABILITIES:

Home – paid.

Car – paid.

Income tax liability: I added 500 dollars to my prepaid tax liability to bring the total to 9,010.  I expect to make at least three more 500 dollar payments as each quarter wraps up.  Maybe more if trading goes well.

 

WITHDRAWAL RATE:

I continue to assume 25,000 in annual withdrawals.  Actual amount varies by a few dollars from month to month based on cash distributions for Wells Fargo brokerage to checking.  Current estimate is 5.11% withdrawal rate.  Another couple of good months could see me pass the half a million mark and hit a sub 5% rate.

Forward twelve month distributions come to 25,786 or just over budget.  I pulled in 1,336 in options premiums in the month as well.  Annualizing year to date options trading results yields 27,006 in annual option premiums.  So my budget is covered twice over.  Strong trading results will result in a slightly higher withdrawal requirement to fund income tax liability.

 

SPENDING:

Core spending was low at 1,393 for the month.  Total spending was 1,893 after applying 500 extra dollars to income tax prepayments.  Spending for the year to date comes to 7,979 which annualizes to only 19,150.  It looks like I am in good shape but my expenses are always back loaded with an extra 4,000 or so coming due at year end for real estate taxes and insurance.  All in all, I’m on track for the year.

Devour your prey raptors!

 

{ 3 comments… add one }
  • Chris B June 2, 2017, 2:31 am

    This is inspiring to see. Our NW is near yours but much of it is tied up in 401k plans with only a handful of funds to pick from. Plus our living expenses are double yours because the house is not paid off, we have more people in the household, childcare, 2 cars, 2 dogs, etc. So we’re several years from FI assuming the 4% rule.

    How many hours per week do you devote to investing? I’m already dipping a toe in, but success is limited due to the limited amount of time I can spend on strategy / research. Having a job during market hours certainly makes it harder to have an options trading hobby.

    • The Lizard King June 2, 2017, 1:55 pm

      Chris,

      Glad you enjoyed it. I put in about an hour a day? I don’t really track it because I don’t think of it as ‘work’. I enjoy myself too much!

    • t June 2, 2017, 8:07 pm

      I trade options on ~200k having a full-time job and family. If your plan is to hold positions until expiration on the contract, then there isn’t all that much time spent when you are fully invested. I’ve had big moves happen days after I’ve sold a contract and I’ve bought out of it for pennies just so that I could redeploy the money somewhere else, but I almost always hold until expiration.
      If you can find stocks that are moving sideways for a long time, you just keep going back to the well (assuming no change to your opinion of the fundamentals). There is not much to do there except pay attention to news and earnings.

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