Another month in the bag.

music selection:  “Upside Down” — Diana Ross

The trend line is negative this month.  I think we look squarely at POTUS and his tariffs.  What he has done with China flies in the face of everything I learned about Ricardian Economics in my undergrad days.  The new tariffs against Mexico just completely defy logic.  He hasn’t been able to close the border so now he thinks the Mexicans can do better?  And that they will respond to blackmail?  I’m waiting to see if he grants exemptions to the Mexico tariffs for his own clothing line that is manufactured south of the border.  Surely, no one can be that stupid?

ASSETS:
Wells Fargo (taxable): This finished the month down 1,099 dollars at 28,195.  That is a 3.75% monthly loss and good for 6.89% annual gain.

Interactive Brokers (taxable): Here I finished the month at 207,521 down from 234,064 last month.  That is a monthly loss of 11.34% and year to date gain of 30.34%.

Interactive Brokers (tIRA): This account is down 4,676 to 162,596 versus last month.  The monthly loss is 2.80%.  Feel pretty good about the long term performance of this mostly property and casualty insurance portfolio that has a year to date gain of 10.81%.

HSA: This account is up 2,455 on the period to 6,057.  That is a 68.16% move in the right direction or 135.98% year to date, driven largely by my annual contribution.  This account is still “small” and will see wild swings until it has more ballast.

Checking: Cash is down to 7,568 from 13,134.  That is a 42.38% decrease from last month and 11.88% loss year to date.  The month looks a little wacky because of unusual spending plus the funding of my HSA for the 2019 plan year.  This should jump substantially next month as I expect an almost 13,000 tax refund.  I will make an estimated payment of 2,350 to the IRS for my quarterly contribution next month as well.

Total investable assets come to 411,937 down 7.92% from 447,366 last month and up 19.93% from 343,483 year to date.

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 2,350 income tax prepayment asset and expect to make three more such payments during the year.  I hope to get my estimate “about right” this year.  I have been carrying too much prepayment so far in early retirement.

 

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 411,937 that is a withdrawal rate of 6.27%.  I earned 1,110 in options premium income during the month of March, inclusive of 438 of short term capital loss on shares that were called away.  I’m trending to earn 72.01% of budget from options trades this year.  Additionally, my income centric approach to investing includes 25,829 in expected distributions, dividends, and interest for the year or an additional 103.31% 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.

 

SPENDING:

Spending was 1,975 for the month, which is under the 2,000 target.   I will be spending much less on Stansberry products now that I have a Choice account allowing access to 10 services with my PWA subscription combined.  This should allow me to come in under budget for the year and for the foreseeable future.  There will be a cash transfer from checking to the IRS for quarterly estimated taxes next month.

 

OTHER INCOME:

I earned 150 this month or 139 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 have an accrual for about 112 dollars from Google AdSense that should pay out next month.  May was my first ever month to accrue over $100 in a single period.

Devour your prey raptors!

Financial Transparency as of 31MAY2019

Never miss another opportunity to devour prey!

3 thoughts on “Financial Transparency as of 31MAY2019

  • June 3, 2019 at 3:47 pm
    Permalink

    It’s the politics of Herbert Hoover, minus the dignity. I predict a bumpy summer followed by a recession in the first and second quarters of 2020. Dollar stores and Ford/GM are obvious candidates for short spreads.

    Time to stress test your mostly bullish equity and options allocation.

    Reply
    • June 3, 2019 at 5:02 pm
      Permalink

      I already have long calls on GM/F. I’m not sure about the Dollar Stores. They are probably good short term shorts due to tariff pressure. But in a recession, their revenue will soar.

      Reply
  • June 20, 2019 at 11:25 pm
    Permalink

    Edited to add: I would also recommend that you NOT approve my previous comment for public viewing.

    Keep up the good work, and best of luck!

    Reply

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