Yet another month complete.
music selection: “Her Name Is Alice” — Shinedown
Each month, I review my financial results for the period and year to date. This includes a summary of my spending, budget, and some ratios to benchmark portfolio performance. I hope it serves as inspiration to those who are afraid they will never accumulate more than a few hundred thousand and thus will never retire. It doesn’t take as much money to retire as the mainstream FIRE community insists!
Interactive Brokers (taxable): Here I finished the month at 194,791 down from 214,875 last month. That is a monthly loss of 9.35% and year to date gain of 22.34%.
Interactive Brokers (tIRA): This account is up 5,212 to 177,659 versus last month. The monthly gain is 3.02%. Feel pretty good about the long term performance of this mostly property and casualty insurance portfolio that has a year to date gain of 21.08%. A sleepy industry should normally return 9-12% a year not twice that in half the time.
HSA: This account is up 281 on the period to 7,266. That is a 4.02% move in the right direction or 183.09% gain 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 up to 20,624 from 20,083. That is a 2.69% gain from last month and 140.14% gain year to date. I have suspended my monthly withdrawals from Interactive Brokers through the end of the year as I am flush with cash. This will allow me to raise some brokerage cash for the downturn.
Total investable assets come to 429,066 down 3.15% from 443,030 last month and up 24.92% from 343,483 year to date.
Don’t forget to see the long term trend at Lizard King’s Transparency Page.
Income tax: I have a 7,050 income tax prepayment asset I hope to get my estimate “about right” this year. I have been carrying too much prepayment so far in early retirement. Next payment of 2,350 needs to be made after the first of the year. I will be converting some of my tIRA to Roth to increase my MAGI for ACA subsidy purposes.
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 429,066 that is a withdrawal rate of 5.83%. I earned 809 in options premium income during the month of September. I’m trending to earn 71% of budget from options trades this year. Additionally, my income centric approach to investing includes 25,267 in expected distributions, dividends, and interest for the year or an additional 101.10% of budget. Total budget is estimated to be covered 172.07%. 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 was 1,721 for the month, which is under the 2,000 target. I’m well under budget for the year but my expensive months with home insurance and taxes are coming up. I also spent about 400 dollars on my automobile for tires and rear shocks/struts that will show up in next month’s spending report.
I picked up 131 dollars from my efforts on the local Water Board. Next month should see a payment from Google AdSense of 103 dollars. Ad income for the blog is about 250 dollars a year so it isn’t making me rich and makes my “hourly rate” sort of laughable. This is currently a labor of love.