Looking better after a month.

music selection:  “Jamming” — Bob Marley

I am acclimating to a new normal where spending is about 500 dollars a month less (although it might not be necessary.)  I have been able to make some trades that worked out well and I’m finding options premiums are stupid fat right now.  Year to date, I’ve already picked up 14,722 in earned premiums with another 4,500 or so expected next month.  I have a side hustle developing and a good lead on nonprofit work.

ASSETS:

Wells Fargo (taxable): This finished the month up 7,989 dollars at 13,872. The big jump is mostly due from transfers from checking to brokerage as I bought BIT and CHI in the month (which both immediately appreciated nicely). This account also produces $106.25 in monthly distributions, which sweep to my checking.  I’ll be looking for more Closed End Funds to buy in that account as funds are available.

Interactive Brokers (taxable): This is up 4,356 on the month to 125,063 which is good for a 3.61% monthly gain.  Year to date, I am down here by 32.20%.

Interactive Brokers (tIRA): This account is up 6,432 on the month. The monthly gain is 11.03% and the year to date loss is 61.07%, driven by my 50k distribution to taxable.

Interactive Brokers (Roth): This is up 1,012 dollars to 5,635.  The monthly gain is 21.89%, driven by a bet on NLY and the year to date loss is the 59.23%, driven by complete losses for shares held long in MRRL.

HSA: This account is down 235 on the period to 9,601. That is a downward move of 2.31% on the month and 1.72% gain on the year, driven largely by my annual contribution from checking.

Checking: Cash is down to 11,837 from 16,825. That is a 29.5% decrease from last month and 12.94% gain year to date. I am restarting my monthly withdrawals from Interactive Brokers at 1,500 a month.

Total investable assets come to 230,730 up 6.74% from 216,164 last month and down 182,890 year to date or 44.22%.

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 9,865 income tax prepayment asset. This is all held to offset the tax hit from my tIRA conversion to taxable.

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 230,730 that is a withdrawal rate of 7.80%. I gained 8,291 in closed options trades during the month of April (largely from closed hedges) and am pacing for covering 245% of 18,000 from options trades. Additionally, my income centric approach to investing includes 12,822 in expected distributions, dividends, and interest for the year or an additional 71.23% of the new budget. Total budget is estimated to be covered by 316.60%. 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 1,420 for the month, which is below the 1,500 target.  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 300 dollars from my efforts on the local Water Board.  I made another 50 bucks on a short consulting project for a local church that needed some accounting expertise.  I have a (super secret) side hustle now that should start to bring in about 300 a month after tax.  First payment will come in May and I expect 162 in after tax proceeds from my first half month at it.  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 1MAY2020

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3 thoughts on “Financial Transparency as of 1MAY2020

  • May 1, 2020 at 3:54 pm
    Permalink

    Good luck with the gigs! In terms of investing, you’ve had a bullish tilt for years because that’s what worked, but now might be a time to switch strategies. For example, I have very little concern that stocks will rise above their Feb highs in the next six months, and with today’s high vol it seems possible to make some cash on relatively safe bear spreads.

    I’d also suggest making a rule that unlimited loss positions (e.g. short calls) comprise less than x% of the portfolio. This could prevent a second blowup.

    Lastly, plan for the long term. Politicians want us to believe the crisis is already over, but public health experts strike a different tune. Some poignant quotes in the following article:

    https://www.cnn.com/2020/04/30/health/report-covid-two-more-years/index.html

    Reply
  • May 5, 2020 at 8:12 am
    Permalink

    I just want to echo what others have said, that I really appreciate your transparency. It seems that so many act like they called every high and low, even though we can smell what they’re shoveling. You’re living your life authentically and I’m sure that not having to deal with the cognitive dissonance of your public persona vs. your actual returns will aid you in making decisions with a clear head and conscience.

    I’m sorry to hear of the recent setbacks in your trading and personal life. I know you’ve bounced back from difficult situations before and I have no doubt you will deal with this situation well. Even financially, it’s instructive that after a major loss you still have six figures liquid plus a paid off house and car. But more valuable than any of those assets is you: your attitude and skills and self-discipline and problem solving. I’m long Lizard King, good luck.

    Reply

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