Up 45k on the month.
music selection: “On The Dark Side” — John Cafferty & The Beaver Brown Band
Spending is way over target. I paid the remaining real estate taxes for the year. 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.
ASSETS:
Wells Fargo (taxable): This finished the month up 1,880 dollars at 20,602. The gain is 10.04% on the month and 29.32% 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 28,471 on the month to 170,004 which is good for a 20.12% monthly gain! Year to date, I am down here by 7.84%.
Interactive Brokers (tIRA): This account is up 15,085 on the month. The monthly gain is 17.99% and the year to date loss is 40.50%, driven by my 50k distribution to taxable.
Interactive Brokers (Roth): This is up 913 dollars to 7,827. The monthly gain is 13.21%, and the year to date loss is 43.36%, driven by complete losses for shares held long in MRRL.
HSA: This account is up 1,118 on the period to 11,829. That is a move of 10.44% on the month and 25.32% gain on the year. I had withdrawals for medications.
Checking: Cash is down to 7,464 from 9,663. That is a 22.76% decrease from last month and 28.79% loss year to date. Monthly withdrawals from the taxable brokerage are set at 1,500 a month, my target spending.
Coins: I sold all my collectible coins to put the proceeds towards crypto. I think BTC and ETH are better investments than precious metals right now plus they earn interest at BlockFI.
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. After selling my coins this account is up to 5,384.
Total investable assets come to 322,247 up 16.23% from 277,476 last month and down 91,373 year to date or 22.09%.
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. I will probably need to make an estimated payment in January.
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 322,247 that is a withdrawal rate of 5.59%. I gained 3,388 in closed options trades during the month of Novober and am pacing for covering 243% of 18,000 from options trades. Additionally, my income centric approach to investing includes 12,355 in expected distributions, dividends, and interest for the year or an additional 68.64% of the new budget. Total budget is estimated to be covered by 311.65%. 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:
Spending was 4,074 for the month, which is well above the 1,500 target. I had to pay the real estate taxes for the year which are kind of high in Texas as we have no state income tax. I’m pacing 2,151/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.
OTHER INCOME:
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!