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 August 2018 with year to date updates.
music selection: “Breaking The Silence” — Queensryche
Wells Fargo (taxable): This finished the month at 29,679 down from 30,343 at last month end. That is a 2.19% monthly loss. Year to date, this account is down 1,002 or 3.27%.
Interactive Brokers (taxable): Here I finished the month at 301,608 down from 30,6024 last month. That is a monthly loss of 1.44% and a year to date result of minus 6.86%. 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 down to 172,215, from 173,213 last month. The monthly loss is 0.58% and my year to date result is a 5.62% gain.
HSA: This account is up 30 on the period to 4,118. That is a 0.72% move in the right direction. For the year, I am up 668 or 19.37%.
Checking: Cash is down substantially to 8,948 from 9,821. That is a 8.89% decline from last month. Year to date cash has changed by minus 25.51%
Total investable assets come to 516,568 down 1.32% from 523,490 last month. The year to date mark is minus 2.46%. Total liquid networth would be up if not for the fact my spending comes from investable assets.
Don’t forget to see the long term trend at Lizard King’s Transparency Page.
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.
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 516,568, that is a withdrawal rate of 4.84%. I earned 2,282 in options premium income during the month of September and am on pace to earn 38,454 in options for the year or 1.54 times budget. Additionally, my income centric approach to investing includes 29,188 in expected distributions, dividends, and interest for the year or an additional 116.75% 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 2.70 times over by portfolio earnings.
Spending was 2,906 for the month, which is way over the 2,000 target. Year to date, I have spent 20,650 and am pacing 27,533 for the year. That is 2,533 over budget.
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. I also picked up a Google Adsense payment of 101.64.
Devour your prey raptors!