Just how bad is it for Lizard King?

music selection: “Stormrider” — Iced Earth

I’m in a bad way.  The margin loan I had from my short misstep against TSLA came at a bad time.  I was force to liquidate some core positions during the crash.  Worse, I held on to MRRL to the end thinking the high distribution made it immune to liquidation.  I lost about 50k more from that.  Time will tell if I can stay “retired”.

ASSETS:

Wells Fargo (taxable): This finished the month down 22,018 dollars at 5,883. This one isn’t as bad as it looks as I hit a lot of trailing stops and converted a lot of that to cash, which swept to checking.  That is a 78.91% monthly decrease and good for 79.82% annual decline. This account also produces 410 in annual distributions, which sweep to my checking.  I’ll be buying some CEF’s in that account today.

Interactive Brokers (taxable): I really got savaged here.  The MRRL debacle cost me 28k in this account.  I hit some stops but exited too late.  After trasnferring 50k from my tIRA the month ends at 120,707 down from 131,889 last month. That is a monthly loss of 8.48% and year to date loss of 34.56%.

Interactive Brokers (tIRA): This account is down 96,124 driven in equal parts by market losses and transferring 50k out to taxable to cover margin. The monthly loss is 62.25% and the year to date loss is 64.95%.

Interactive Brokers (Roth): This is down 6.927 dollars to 4,623.  This account also had substantial exposure to MRRL.  The monthly loss is 59.97% and the year to date loss is the 66.55%.

HSA: This account is down 1,988 on the period to 9,836. That is a downward move of 16.81% on the month and 4.21% gain on the year, driven largely by my annual contribution from checking.

Checking: Cash is up to 11,454 to 16,825. That is a 213.26% increase from last month and 60.53% gain 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 216,164 down 36.97% from 342,949 last month and down 197,456 year to date or 47.74%.

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 7,050 income tax prepayment asset. I also expect to collect a couple thousand dollars in ACA credit.  It will all be rolled forward to offset the liability from early conversion of tIRA.

WITHDRAWAL RATE:

I am resuming withdrawals from my taxable investing accounts set to provide a cash income of 18,000 a year.  I am going to calculate my withdrawal rate against a tightened budget of (18,000) going forward. Against a liquid net worth of 216,164 that is a withdrawal rate of 8.33%. I gained 6,070 in closed options trades during the month of March (largely from closed hedges) and am pacing for covering 143% of 18,000 from options trades. Additionally, my income centric approach to investing includes 13,195 in expected distributions, dividends, and interest for the year or an additional 73.31% of the new budget. Total budget is estimated to be covered by 216.22%. Assuming last year’s spending is necessary, I am still covered although it is unlikely I can sustain the options performance as I will eventually run out of hedges.

SPENDING:

Spending was 2125 for the month, which is well above the 1,500 target. I would have been close to the target but had to split the cost of a new fence (555) with a neighbor.  My dental work should all be done and I don’t have major expenses until insurance and taxes come due on real estate at year end.

OTHER INCOME:

I picked up 150 dollars from my efforts on the local Water Board.  I am exploring employment opportunities as a contractor or as non-profit personnel.  If I can make 20k in a year as a contract (easy?) that seals the deal.  I prefer a non-profit even it is doesn’t pay well.   I want to feel good about what I am doing.

Devour your prey raptors!

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Financial Transparency as of 31MAR2020

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5 thoughts on “Financial Transparency as of 31MAR2020

  • April 1, 2020 at 4:54 pm
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    Thanks for sharing! Wishing you good luck. 🙂

    Reply
  • April 1, 2020 at 7:19 pm
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    Down 47.74% in total is not too bad really if you can hold it there. I think most people will be down 50% when this is all said and done.

    Your ace in the hole is that you own your house and car outright. With those expenses out of the way, the worst case scenario would be needing to get a part-time job. I think you can pull off staying retired with the $216,164 in capital left over. I don’t think it will be too hard to generate 8.33% from just CEFs. If you get a part-time job you’ll be able to replenish your lost capital in a few years.

    I hope you are looking at things optimistically, because I think you are still in really good shape. Your still probably in the top 90% of financial security compared to the average joe.

    Reply
    • April 1, 2020 at 10:16 pm
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      I was a little panicked at first. But I’m coming around to understand how lucky I am. I have an interview for a part time job with a non-profit via Zoom next Tuesday. It would be just enough for me to break even (without NLY).

      Reply
  • April 6, 2020 at 3:12 am
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    You’re better off than most since you’re frugal, smart, have no debt, and own your car and house. Amazon, Walmart and Target are all hiring so you can quickly get a part time job (if you want) and make some extra cash while you recover. You’ll be fine! Best of luck and stay healthy!

    Reply
    • April 6, 2020 at 2:41 pm
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      I have an interview for a part time gig at a non-profit I can be delighted to support. Not much money but it covers the gap.
      I am truly blessed. Thanks for the well wishes.

      Reply

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