Up 35k on the month.
music selection: “Bleed” — Soulfly
Spending is on target for the month but way over for the year. I am leaning towards increasing the budget in 2021.
Wells Fargo (taxable): This finished the month up 597 dollars at 21,199. The gain is 2.9% on the month and 26.9% 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 8,261 on the month to 178,265 which is good for a 4.86% monthly gain. Year to date, I am down here by 6.95%.
Interactive Brokers (tIRA): This account is up 22,689 on the month to 121,826. The monthly gain is 22.89% and the year to date loss is 26.72%, driven by my 50k distribution to taxable.
Interactive Brokers (Roth): This is up 478 dollars to 8,305. The monthly gain is 6.11%, and the year to date loss is 39.91%, driven by complete losses for shares held long in MRRL.
HSA: This account is up 582 on the period to 12,411. That is a move of 4.92% on the month and 44.15% gain on the year. I had withdrawals for medications.
Checking: Cash is up to 7,767 from 7,464. That is a 4.06% increase 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, FIL, BAND, 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 7,729, which is 72.13% return on my basis.
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 think I can squeak by without 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 357,503 that is a withdrawal rate of 4.62%. I gained 8,375 in closed options trades during the month of October and covered 269.29% of 18,000 from options trades. Additionally, my income centric approach to investing includes 9,207 in expected distributions, dividends, and interest for the year or an additional 51.15% of the new budget. Total budget for the year was covered by 320.44%. This more than covered my spending for the year. 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 1,427 for the month, which is just below the 1,500 target. I tried really hard to get under 18,000 for the year and instead came in at 25,094 (last year’s budget!) I think I will increase the budget to 1,800 a month withdrawals from taxable starting with the January withdrawal. I had thought I needed to tighten my belt but I made it by just fine. The current strategy to trade bear put spreads is highly defensive and profits (faster) if and when the market tanks again.
I picked up 150 dollars from my efforts on the local Water Board. This plus cash swept from taxable brokerage accounts come to $1,777 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!