Each month, I break down my finances and financial progress.  This serves primarily to keep me accountable.  I hope it also helps others see the power of an income centric approach to early retirement investing.  Today’s report covers the month of July 2018 with year to date updates.

music selection:  “Freeway Of Love” — Aretha Franklin

ASSETS:

Wells Fargo (taxable): This finished the month at 30,343, up from 30,333 at last month end.  That is a 0.03% monthly gain.  Year to date, this account is down 338 or 1.10%.

Interactive Brokers (taxable): Here I finished the month at 306,024 up from 303,464 last month.  That is a monthly gain of 0.84% and a year to date result of minus 5.50%.  The annualized loss is my first one in several years and is driven by the unexpected change in leverage at UVXY from 2x to 1.5x.  I was unprepared for the announcement.

Interactive Brokers (tIRA): This account is also up to 173,213, from 171,648 last month.  The monthly gain is 0.91% and my year to date result is a 6.24% gain.

HSA: This account is up 292 on the period to 4,089.  That is a 7.69% move in the right direction.  For the year, I am up 639 or 18.51%.

Checking: Cash is down substantially due to a on off purchase of an additional Stansberry product to 9,821 from 11,880.  That is a  17.33% decline from last month.  Year to date cash has changed by minus 18.25%

Total investable assets come to 523,490 up 0.45% from 521,122 last month.  That is a 0.45% monthly gain.  The year to date mark is minus 1.15%

Don’t forget to see the long term trend at Lizard King’s Transparency Page.

LIABILITIES:

Home: paid

Car: paid

Income tax: I have a 12,945 tax asset on deposit with the service.  Because of the mishap with UVXY, I expect to have a trivial tax liability this year and should even qualify for the maximum ACA subsidy.  Net tax rate could be negative for 2018.

WITHDRAWAL RATE:

I have automatic withdrawals from my taxable investing accounts set to provide a cash income of 25,000 a year.  Against a liquid net worth of 523,490, that is a withdrawal rate of 4.78%.  I earned 2,029 in options premium income during the month of August and am on pace to earn 38,88 in options for the year or 1.56 times budget.  Additionally, my income centric approach to investing includes 26,811 in expected distributions, dividends, and interest for the year or an additional 107.25% of budget.  In the event of a downtown, I should be immune to the need to “sell at the bottom”.  At the same time, I can expect steady and robust growth to keep ahead of inflation.  Together, my budget is covered 2.63 times over by portfolio earnings.

SPENDING:

Spending was 4,734 for the month, which is way over the 2,000 target. I had an extraordinary item in August of 3,500 to purchase a premium four year subscription to a Stanberry Research product.  I expected to be done with purchasing investment guidance but had a follow up opportunity to spend 1,500 more and convert my subscription from 4 years to lifetime as well as secure 4 additional lifestime product subscriptions.  I should be done purchasing Stansberry products basically forever now.  Year to date, I have spent 17,774 and am pacing 26,616 for the year.  That is 1,616 over budget.

OTHER INCOME:

I earned 150 this month or 138.52 after payroll taxes for my efforts at the Memorial Hills UD municipal water board.  It is a small amount but over a year’s time it adds up to another full social security credit.  This should improve my eventual payout when I reach qualifying age.  Next month should see a payout from Google AdSense of just over 100 dollars.  That represents about 11 months of earnings for the blog (you cheap bastards never click my ads!)  I won’t convert those earnings into an hourly rate because it is unseemly when giant lizards cry.

Devour your prey raptors!

Financial Transparency as of 31AUG2018

Never miss another opportunity to devour prey!

6 thoughts on “Financial Transparency as of 31AUG2018

  • September 1, 2018 at 4:05 pm
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    you have put huge commitment Stanberry service and must be very happy with their products. I am wondering if you can share your experiences by using the service and tell us which product you can recommend.
    I am considering to subscribe DailyWealth Trader for monthly income. any comment on it

    regards

    Walksing

    Reply
    • September 1, 2018 at 5:42 pm
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      Walksing, deleted some duplicate comments from you and responding to the longest.

      Stansberry is my favorite of the subscription services. I have canceled Palm Beach products and Motley Fool (where I was once all-access “Duke Street” for 5,000/year) and never looked back. For several years I have had the Permanent Wealth Alliance subscription, which I paid 1,000 for upfront and about 120 a year in maintenance fees. That includes lifetime subscriptions to five newsletters of Stansberry’s choosing (SIA, Commodity Supercycles, True Wealth, Retirement Millionaire, and Income Intelligence) – really like Income Intelligence out of that group. Most investors are under allocating to income in my opinion and Dr. Eifrig does it very well. The Choice subscription is 5,000 for lifetime access to any five additional services (except the portfolio offerings and the microcap services). You can change out your five at any time for an additional 99 fee. Basically, I now have my favorite 10 out of 17 and growing possible services. I consider the lifetime subscription to just the bond trading service (Credit Opportunities) to be worth the 5,000 I paid. The other four services are nice bonuses. They will keep me entertained and informed but I will likely not allocate material capital to those offerings as I already have more advice than I can reasonably action all at once. Will be increasing my allocation to bonds as Stansberry makes discounted bond recommendations and dialing back the options exposure.

      I previously subscribed to Daily Wealth Trader (DWT) and found it to be a good publication. I canceled because I was already doing the strategy on my own and felt comfortable with my returns and level of knowledge. They have recently added pairs trading recommendations to DWT and I think that is a good fit for the current stage of the market cycle. It will be useful to have some market neutral positions when the inevitable crash occurs. The indicated income yields from DWT picks are usually quite good on an annualized basis and often come with respectable downside protection. And none of the underlying tickers have been toxic in my experience. It is a good place to start and reasonably priced if still 50/month. Recommended for anyone who wants to learn trading options for income and wants daily education plus a little hand holding while you learn. Although, I would recommend Retirement Trader (RT) more highly for options trading advice. It is more expensive and only makes monthly recommendations though. When my 1 month all access period expires and I have to make my 5 service selections, I will go with RT over DWT for my own purposes, largely because I don’t want to track 20+ additional positions each month and prefer to concentrate my increasingly small allocation to options to a few very strong opportunities. But if you want to go deeply into trading options, DWT might be the better fit for you.

      I trust Stansberry and respect their ethics (hard to find in the newsletter business, which can be very shady and why I dumped Motley Fool). With any subscription from them you will get the Daily Digest email. This is part sales letter for additional services and (a larger part) educational material, with a sliver of polemic libertarian ranting (I just tune out Porter’s politics). If you can tolerate libertarian ranting, the free Bill Bonner Diary is worth subscribing to. The weekly Friday edition of the Stansberry Daily Digest is required reading, in my opinion. Very good, and always educational.

      Hope this helps. You can always email me at financial [dot] velociraptor [at] gmail [dot] com if you need to speak privately.

      Reply
  • September 3, 2018 at 6:56 pm
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    Love the transparency FV!

    Your withdrawal rate is higher than mine, but you seem to make it work (rather well) with option income.

    Nice job!

    Reply
    • September 4, 2018 at 2:29 am
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      Thanks Tako. Glad you are still reading. Looking forward to you next post that includes pictures of delicious food.

      Reply
  • September 23, 2018 at 3:46 pm
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    That’s some great cash flow, especially the withdrawal rate. I’m sort of surprised by how my rate is almost the same as you, even though the income streams hardly match. I am trying to reduce it to half from October and the wife agrees. Cutting the cord, reducing food waste, and selling old stuff are in the agenda.

    Reply

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