Another month in the bag.
music selection: “Say It Right” — Nelly Furtado
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. Hopefully, someone is inspired by this to achieve Financial Independence.
Interactive Brokers (taxable): Here I finished the month at 198,473 down from 199,918 last month. That is a monthly loss of 0.72 and year to date gain of 24.65%.
Interactive Brokers (tIRA): This account is up 3,354 to 164,071 versus last month. The monthly gain is 2.09 and the year to date gain is 11.82% despite converting about 13,000 to Roth.
Interactive Brokers (Roth): This is up 198 dollars to 13,220. The monthly gain is 1.52% and the year to date gain is meaningless as the account started the year at 0.
HSA: This account is up 747 on the period to 8,610. That is a 9.5% move in the right direction or 156.89% 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 down to 12,615 from 15,088. That is a 16.39% decrease from last month and 153.93% 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 425,988 up 0.09% from 425,585 last month and up 26.11% 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. I am over estimated and will not be making a fourth estimated tax payment after the first of the year. I have converted some of my tIRA to Roth to increase my MAGI for ACA subsidy purposes. The net result will be almost free healthcare and a tax refund in April/May.
I have suspended withdrawals from my taxable investing accounts set to provide a cash income of 25,000 a year. I am instead drawing down cash but I continue to use the 25,000 number to calculate withdrawal rate. Against a liquid net worth of 425,988 that is a withdrawal rate of 5.87%. I earned 1,082 in options premium income during the month of November. I’m trending to earn 55% of budget from options trades this year. Additionally, my income centric approach to investing includes 260,34 in expected distributions, dividends, and interest for the year or an additional 104.14% of budget. Total budget is estimated to be covered 158.88%. 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. I’ll update at year year to reflect withdrawal rate versus actual spending.
Spending was 2,827 for the month, which is well above the 2,000 target. I’m well under budget for the year but my expensive months are here and I have one more real estate tax bill due in the mail. December should come in under budget by a hair though leaving me thousands below budget for the year.
I picked up 131 dollars from my efforts on the local Water Board.
Devour your prey raptors!