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 November 2018 with year to date updates.

music selection:  “I’m So Excited” — The Pointer Sisters

ASSETS:

Wells Fargo (taxable): This finished the month at 28,124 up from 27,992 at last month end.  That is a 0.47% monthly gain.  Year to date, this account is down 2,557 or 8.33%.

Interactive Brokers (taxable): Here I finished the month at 239,105 down from 251,041 last month.  That is a monthly loss of 4.75% and a year to date result of minus 26.17%.  There is no putting lipstick on the pig.  The recent market volatility hit me hard.

Interactive Brokers (tIRA): This account is up to 158,135 from 157,707 last month.  The monthly gain is 0.27% and my year to date result is a 3.29% loss.  The account is narrowly trailing the benchmark.

HSA: This account is up 137 on the period to 3,335.  That is a 4.30% move in the right direction.  For the year, I am down 115 or 3.33%.  This account is expected to decline a few percent a year (excluding new contributions) as I spent from it for doctor’s appointments and medication.

Checking: Cash is down to 8,745 from 10,904.  That is a 19.80% decrease from last month.  Year to date cash has changed by minus 27.20%, driven by spending and transfers to HSA.

Total investable assets come to 437,444 down 2.97% from 450,838 last month.   The year to date mark is minus 17.4%.  I am down versus the S&P benchmark including after deducting spending.

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 437,444 that is a withdrawal rate of 5.72%.  I earned 2,883 in options premium income during the month of November and am on pace to earn 38,103 in options for the year or 1.52 times budget.  Additionally, my income centric approach to investing includes 30,501 in expected distributions, dividends, and interest for the year or an additional 122.00% 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 2.74 times over by portfolio earnings.  This is a great comfort as the portfolio balance declines with the market correction as I am not obligated to sell shares into a downturn to meet budget.

SPENDING:

Spending was 2,024 for the month, which is just over the 2,000 target.   Year to date, I have spent 23,996 and am pacing 26,145 for the year.  That is 1,145 over budget.  Driven largely by 5k+ spent on Stansberry Research products.  I should not need to purchase more advice in the future thanks to my flexible Choice membership.

OTHER INCOME:

I earned 150 this month or 138 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.

Devour your prey raptors!

Financial Transparency as of 30NOV2018

Never miss another opportunity to devour prey!

6 thoughts on “Financial Transparency as of 30NOV2018

  • December 1, 2018 at 5:09 pm
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    Hi Raptor,
    October hit hard for everyone. Have you modified your strategy any afterwards? Thank you sir.

    Reply
    • December 2, 2018 at 12:33 am
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      Dan,

      No changes except a vague plan to raise more cash as opportunities arise. I keep enough in fixed and semi fixed income to ensure my budget is met without trading. That gives me a long horizon to recover from recent trading blunders.

      Reply
  • December 2, 2018 at 12:19 am
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    Velociraptor, how much of the -17% came from UVXY? Just wondering if that was the primary issue or if it was from leveraged assets like CEFs declining more, because of the leverage.

    Thanks for posting the monthly updates. I find it very useful to see real world data from early retirees and investors.

    Reply
    • December 2, 2018 at 12:32 am
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      Chomper,

      The UVXY leverage change mishap cost me a little over 13k. If you back out withdrawals from spending to get true returns, I’m down a little over 68k. So back of the envelope, UVXY is about 19% of the problem. My CEFs are highly tilted towards underlying investments in debt and debt like securities. They really just don’t move that much. The fault lies with me for making options bets on stocks with higher than usual Beta that moved against me.

      This is why it is important to have a good fixed income base if you are going to trade individual stocks. Sure, I’ve made some really great returns over the years. But it was only a matter of time before I had a “bad year.”

      Reply
  • December 7, 2018 at 4:24 pm
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    I’m still holding on to some UVXY2 17Jan20 6.0 puts, now down to 1.71. I’ve lost a year of time value. Would you counsel me to sell now and eat the loss or try to snag a gain next year?

    Reply
    • December 8, 2018 at 2:51 pm
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      I can’t offer individual investment advice (lack the proper license). I’ll tell you I sold my puts and ate the loss. Have not re-entered the trade yet.

      Reply

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