Despite the roaring bull market, I had a down month.
music selection: “It’s Tricky” — Run-D.M.C.
weigh-in: 209.2 (0.4)
Wells Fargo (taxable): Down 595 dollars on the month. I’m up here 1,578 on the year. Performance is about as expected as it is mostly debt instruments held for yield instead of capital appreciation.
Interactive Brokers (taxable): This is down 3,269 on the month. As I’ve noted in previous posts, I’ve been pruning the portfolio of losers to harvest tax losses and deploy capital more productively. The new mark is 308,429.
Interactive Brokers (tIRA): This account is up 2,152 on the month. A large part of that was my final UVXY put in this account as partnerships are no longer allowed in tax advantaged accounts at IB. Except for Facebook, Altria and MORL, the tIRA account is now entirely in property and casualty insurance companies. Month end closing balance was 162,565.
Checking: I took a big hit paying for year end real estate taxes and home insurance. This account is down 2,035 on the month and now sits at 10,583.
Total Liquid Networth: The entire portfolio was down 3,747 on the month or 0.73%. Annualized year to date return was 15.84% including the 25,000 a year drag from paying for living expenses. Without the withdrawals, the annualized gain would have been 21.94%. That is a Warren Buffet like return. If I can keep it up for 60 years like the master, you will all be calling me Lizard King, the Hot Shot of Houston.
No real changes here.
Home – Paid
Car – Paid
I have a tax liability of about 9,500. That is offset by a prepaid tax asset of 10,000. I plan to put another 500 towards prepayment in January to cover additional gains in case of a strong Santa Claus rally.
I am budgeting 25,000 for annual spending. Against a liquid networth of 512,289 that is a withdrawal rate of 4.88%. Projected 12 month distributions, dividends, and interest come to 28,600 or 114.4% of budget. Options income for the month was 5,744, driven largely by UVXY profits. On the year, I’m on pace to collect 35,212 in annual options income or 141% of budget. This is the last year I have significant tax losses to capture so my withdrawal rate will increase next year due to needing to put more away for tax liability. I’m a lizard with a First World Problem.
I really blew past the budget this month by spending 4,165. I didn’t go wild. I just had lots of non-discretionary expenses such as real estate taxes and insurance come due all at once. My modest bill for FinCon17 also came due. Total spending for the year is 22,600 which annualizes to 24,655. I look to be coming in just under budget. Next year probably has a 35,000 budget to cover tax liability. I’m still trying to wrap my head around what the new budget looks like.
Devour your prey raptors!