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.
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.
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 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 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.
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!