A good month.
music selection: “Let Me Be There” — Olivia Newton John
Spending is way over target. 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 486 dollars at 19,465. The gain is 2.56% on the month and 33.25% 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 11,424 on the month to 158,816 which is good for a 7.75% monthly gain. Year to date, I am down here by 13.9%.
Interactive Brokers (tIRA): This account is up 7,659 on the month. The monthly gain is 10.01% and the year to date loss is 49.36%, driven by my 50k distribution to taxable.
Interactive Brokers (Roth): This is up 343 dollars to 6,656. The monthly gain is 5.43%, and the year to date loss is 51.84%, driven by complete losses for shares held long in MRRL.
HSA: This account is down 295 on the period to 10,860. That is a move of -2.64% on the month and 15.05% gain on the year. I had withdrawals for refilling medications.
Checking: Cash is down to 9,328 from 10,280. That is a 9.26% decrease from last month and 11.00% loss year to date. Monthly withdrawals from the taxable brokerage are set at 1,500 a month, my target spending.
Crypto: Coming soon!
Total investable assets come to 289,321 up 6.90% from 270,656 last month and down 124,299 year to date or 30.05%.
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 289,321 that is a withdrawal rate of 6.22%. I gained 2,806 in closed options trades during the month of August and am pacing for covering 236% of 18,000 from options trades. Additionally, my income centric approach to investing includes 17,922 in expected distributions, dividends, and interest for the year or an additional 99.57% of the new budget. Total budget is estimated to be covered by 335.88%. Assuming last year’s spending is necessary, I am still covered. The options performance is picking up and I hope to deploy some profits into more closed end funds with yield to get my passive income back above budget.
Spending was 2,707 for the month, which is well above the 1,500 target. I had to pay the bill on car repairs, home repair, car insurance, and more I’m pacing 1,727/month in spending so far. I’ll need to tighten things down in September to make budget at year end as Nov and Dec have insurance and real estate taxes due.
I picked up 300 dollars from my efforts on the local Water Board. These two items plus cash swept from taxable brokerage accounts come to $1,917 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!