COVID-19 has rollicked the markets this month.
music selection: “Lucille” — B.B. King
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.
Wells Fargo (taxable): This finished the month down 2,122 dollars at 27,901. That is a 7.07% monthly decrease and good for 4.31% annual decline. This account also produces 2,639 in annual distributions, which sweep to my checking.
Interactive Brokers (taxable): Here I did poorly, driven by my allocation to betting against VXX, ending the month at 131,889 down from 157,689 last month. That is a monthly loss of 16.36% and year to date loss of 28.50%.
Interactive Brokers (tIRA): This account is down 13,996 to 154,414 versus last month. The monthly loss is 8.31% and the year to date loss is 7.12%. This account is heavily weighted towards low beta insurance companies but even that was not spared in the market sell off.
Interactive Brokers (Roth): This is down 1,731 dollars to 11,550. The monthly loss is 13.03% and the year to date loss is the 14.03%.
HSA: This account is down 1,304 on the period to 11,824. That is a downward move of 9.94% on the month and 25.27% gain on the year, driven largely by my annual contribution from checking.
Checking: Cash is down to 5,371 from 6,373. That is a 15.72% decrease from last month and 48.75% loss year to date. I am restarting my monthly withdrawals from Interactive Brokers and should get my first transfer in a few days.
Total investable assets come to 342,949 down 11.82% from 388,905 last month and down 70,671 year to date or 17.09%.
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 also expect to collect a couple thousand dollars in ACA credit and receive the entire amount as a refund. I will set aside much less this year.
I am resuming withdrawals from my taxable investing accounts set to provide a cash income of 25,000 a year. I am going to calculate my withdrawal rate against last year’s actual spending (23,237)going forward. Against a liquid net worth of 342,949 that is a withdrawal rate of 6.78%. I gained 1,405 in closed options trades during the month of February and am pacing for covering 9% of last year’s spending from options trades. Additionally, my income centric approach to investing includes 21,432 in expected distributions, dividends, and interest for the year or an additional 92.23% of last year’s actual spending. Total budget is estimated to be covered by 101.56%. In the event of an extended 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 1,555 for the month, which is well below the 2,000 target. I think I can mostly keep spending down this year except for some dental work I need done. That cost me $328 this month and will see a similar bill next month for my remaining work. Seems this hungry Lizard grinds his teeth in his sleep. Probably dreaming about tasty trades!
I picked up 150 dollars from my efforts on the local Water Board and $25 from Survey Junkie.
Devour your prey raptors!