Up 5,500 on the month.
music selection: “Inside Out” — Xyz
Spending is about on target but going over the next couple months. I have unplanned expenses for auto repair, home repair, and the eye doctor. I’ll have to be extra careful through year end with spending. The non-profit gig remains on hold pending social distancing requirements.
Wells Fargo (taxable): This finished the month up 4,129 dollars at 18,979. The gain is 27.8% on the month and 34.91% decline year to date. This account also produces $141.00 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 3,301 on the month to 147,392 which is good for a 2.29% monthly gain. Year to date, I am down here by 20.1%.
Interactive Brokers (tIRA): This account is up 1.389 on the month. The monthly gain is 1.85% and the year to date loss is 53.96%, driven by my 50k distribution to taxable.
Interactive Brokers (Roth): This is up 124 dollars to 6,313. The monthly gain is 2.00%, driven by a bet on NLY and the year to date loss is the 54.32%, driven by complete losses for shares held long in MRRL.
HSA: This account is up 1,254 on the period to 11,155. That is a move of 31.16% on the month and 18.18% gain on the year. I had withdrawals for an eye doctor appointment and new glasses. Will probably refill medications from this account next month as well.
Checking: Cash is down to 10,280 from 13,409. That is a 23.34% decrease from last month and 1.92% loss year to date. Monthly withdrawals from the taxable brokerage are set at 1,500 a month, my target spending.
Total investable assets come to 270,656 up 2.68% from 263,588 last month and down 142,964 year to date or 34.56%.
Don’t forget to see the long term trend at Lizard King’s Transparency Page.
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. I will probably need to make some estimated payments in Q3 and Q4.
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 270,656 that is a withdrawal rate of 6.65%. I gained 2,552 in closed options trades during the month of July and am pacing for covering 228% of 18,000 from options trades. Additionally, my income centric approach to investing includes 18,463 in expected distributions, dividends, and interest for the year or an additional 102.57% of the new budget. Total budget is estimated to be covered by 330.93%. 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 was 1,608 for the month, which is above the 1,500 target, but below last month. I’m pacing 1,584/month in spending so far. I’ll need to tighten things down in Aug and Sep to make budget at year end as Nov and Dec have insurance and real estate taxes due.
I picked up 150 dollars from my efforts on the local Water Board. My side hustle brought in 135 before tax. These two items plus cash swept from taxable brokerage accounts come to $1,914 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!