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”.
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.
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.
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 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.
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!