It was a good month.

music selection:  “Orgasmatron” — Sepultura

weigh-in:  212.4 (0.4)

My new normal during COVID-19 has me spending less money.  That will be derailed slightly next month when the bill for some home repairs come in.  I have a lead on a nonprofit gig that is on hold due to social distancing – no way to do the sample tasks in person for assessment until this blows over.  I have another lead on a part time “financial advisor” role that I suspect is going to turn out to be some kind of MLM (no thanks.)

ASSETS:

Wells Fargo (taxable): This finished the month up 756 dollars at 14,628.  The gain is 5.45% on the month and 49.83% decline year to date. 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 12,855 on the month to 137,918 which is good for a 10.28% monthly gain.  Year to date, I am down here by 25.23%.

Interactive Brokers (tIRA): This account is up 4,863 on the month. The monthly gain is 7.51% and the year to date loss is 58.15%, driven by my 50k distribution to taxable.

Interactive Brokers (Roth): This is up 394 dollars to 6,023.  The monthly gain is 6.99%, driven by a bet on NLY and the year to date loss is the 56.37%, driven by complete losses for shares held long in MRRL.

HSA: This account is down 146 on the period to 9,455. That is a downward move of 1.52% on the month and 0.17% gain on the year.  I had a withdrawal in the month for prescription medication.

Checking: Cash is up to 13,021 from 11,837. That is a 10.0% increase from last month and 24.23% gain year to date. Monthly withdrawals from the taxable brokerage are set at 1,500 a month, my target spending.

Total investable assets come to 250,636 up 8.63% from 230,730 last month and down 162,984 year to date or 39.40%.

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 250,636 that is a withdrawal rate of 7.18%. I gained 3,390 in closed options trades during the month of May and am pacing for covering 222% of 18,000 from options trades. Additionally, my income centric approach to investing includes 20,605 in expected distributions, dividends, and interest for the year or an additional 114.47% of the new budget. Total budget is estimated to be covered by 336.43%. 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 to close.

SPENDING:

Spending was 1,106 for the month, which is below the 1,500 target.  Next month has several hundred dollars of unplanned spending coming due for home repairs.

OTHER INCOME:

I picked up 300 dollars from my efforts on the local Water Board.  My side hustle brought in 358 before tax.  These two items plus cash swept from taxable brokerage accounts come to $2,240 on the month.  I think I can reasonably keep up a $2,000/month pace but I am trying to belt tighten a little until I can trade my way out of a hole.  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!

Sharing is caring!

Financial Transparency as of 31MAY2020

Never miss another opportunity to devour prey!

3 thoughts on “Financial Transparency as of 31MAY2020

  • June 1, 2020 at 3:08 pm
    Permalink

    Nice month, congrats.

    Even if the “financial advisor” job is not MLM, most firms expect their financial advisors to bring or find their own clients, so it is essentially a sales job.

    Reply
  • June 2, 2020 at 6:53 pm
    Permalink

    If you could cover expenses from a job, is there any chance you might pivot to a growth approach instead of an income approach?

    I’m starting to think tech stocks could actually be safer than investments people think are safe.

    Reply
    • June 3, 2020 at 3:12 pm
      Permalink

      Maybe. I like as a category what I call “Big Cheap Tech”. The large caps in the tech space are mature cash gushing businesses that people are still treating like growth companies. You get fat options premiums on mature businesses that way.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.