The month was basically flat.
music selection: “Let’s Groove” — Earth, Wind & Fire
Spending is way over target. I have unplanned expenses for tree removal, fencing repair, and real estate taxes. I can’t realistically meet my spending target for the year now but should come in less than last year. The non-profit gig remains on hold pending social distancing requirements.
Wells Fargo (taxable): This finished the month down 353 dollars at 18,722. The loss is 1.85% on the month and 35.79% 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 down 4,521 on the month to 141,533 which is good for a 3.10% monthly gain. Year to date, I am down here by 23.27%.
Interactive Brokers (tIRA): This account is up 3,609 on the month. The monthly gain is 4.50% and the year to date loss is 49.57%, driven by my 50k distribution to taxable.
Interactive Brokers (Roth): This is up 196 dollars to 6,914. The monthly gain is 2.92%, and the year to date loss is 49.97%, driven by complete losses for shares held long in MRRL.
HSA: This account is up 243 on the period to 10,710. That is a move of 2.32% on the month and 13.47% gain on the year. I had withdrawals for medications.
Checking: Cash is up to 9,663 from 8,534. That is a 13.23% increase from last month and 7.80% loss year to date. Monthly withdrawals from the taxable brokerage are set at 1,500 a month, my target spending.
Coins: I have collectable gold and silver coins worth 5,651, down 596 from last month. That is a 9.54% decline on the month.
Crypto: I recently got started with Coinbase and BlockFI. I earned $10 in free bitcoin for depositing and converting to coin $100. I’ve earned an addition coin in CGLD, MKR, EOS, XLM, COMP, and ALGO for completing short educational videos at Coinbase. You can do the same at the following affiliate link: https://www.coinbase.com/join/dauzat_2kq If you do so, you will earn $10 in free Bitcoin for depositing at least $100 and I will earn the same bonus. (Much appreciated). I think everyone should have a small (not large!) amount of crypto currency as a hedge. My holdings are up 63 dollars on the month from 152 to 216, driven largely by free coin earned at Coinbase.
Total investable assets come to 277,246 down 0.08% from 277,476 last month and down 136,374 year to date or 32.97%.
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 an estimated payment in January.
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 277,246 that is a withdrawal rate of 6.49%. I gained 6,216 in closed options trades during the month of October and am pacing for covering 245% of 18,000 from options trades. Additionally, my income centric approach to investing includes 12,580 in expected distributions, dividends, and interest for the year or an additional 69.89% of the new budget. Total budget is estimated to be covered by 314.62%. 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 3,065 for the month, which is well above the 1,500 target. I had to pay the bill on, home repair, fence repairs, tree removal, and more I’m pacing 1,959/month in spending so far. I can no longer make the spending target for the year and still have two real estate tax payments plus Christmas coming ahead. I should come in well below last year’s spending however.
I picked up 150 dollars from my efforts on the local Water Board. This plus cash swept from taxable brokerage accounts come to $1,775 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!