Up 25k on the month.
music selection: “In A Hole Again” — Tesla
Wells Fargo (taxable): This finished the month down 46 dollars at 21,153. The loss is 0.22% on the month and 0.22% decline year to date. This account also produces $137 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 2,926 on the month to 181,191 which is good for a 1.64% monthly gain. Year to date, I am up here by 1.64%.
Interactive Brokers (tIRA): This account is up 17,775 on the month to 139,601. The monthly gain is 14.59% and the year to date gain is 14.59%. I have pivoted in this account for insurance centric to small cap investing.
Interactive Brokers (Roth): This is up 319 dollars to 8,624. The monthly gain is 3.84%, and the year to date gain is 3.84%. I expect to make a tIRA to Roth conversion in December.
HSA: This account is down 158 on the period to 12,253. That is a move of 1.27% on the month and 1.27% loss on the year. I do not expect to make a tax advantaged contribution this year.
Checking: Cash is up to 9,059 from 7,767. That is a 16.63% increase from last month and 16.63% gain year to date. Monthly withdrawals from the taxable brokerage are set at 1,800 a month, my new for 2021 target spending.
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, ALGO, and NU 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. This account is up 2,805 on the month to 10,535, a gain of 36.30%.
Total investable assets come to 382,415 up 6.97% from 357,503 last month and up 24,913 year to date or 6.97%.
Don’t forget to see the long term trend at Lizard King’s Transparency Page.
Income tax: I have a 9,685 tax asset that I expect to be wiped out when I file taxes due to last year’s 50,000 early withdrawal from tIRA.
I have increased my budget to 1,800 a month. I am going to calculate my withdrawal rate against (21,600) going forward. Against a liquid net worth of 382,415 that is a withdrawal rate of 5.65%. I gained 4,473 in closed options trades during the month of January and covered 248.50% of 21,600 from options trades. Additionally, my income centric approach to investing includes 8,867 in expected distributions, dividends, and interest for the year or an additional 41.05% of the new budget. Total budget for the year was covered by 289.55%. This should more than cover 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 1,507 for the month, which is safely below the 1,800 target. I have increased 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 $2,075 on the month. I think I can reasonably keep up a $2,000/month pace. I have abandoned the search for part time non profit work at least until COVID passes. No one is interviewing until social distancing is over.
Devour your prey raptors!