Down 5,089 on the month.

music selection:
“Only You (And Only You) — Ringo Starr

ASSETS:

Wells Fargo (taxable): This finished the month up 811 dollars at 22,842.  The gain is 3.68% on the month and 7.75% gain 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 down 135 on the month to 189,642 which is good for a 0.07% monthly loss.  Year to date, I am up here by 6.38%.

Interactive Brokers (tIRA): This account is down 7,591 on the month to 138,751. The monthly loss is 5.19% and the year to date gain is 13.89%.  I have pivoted in this account for insurance centric to small cap investing.

Interactive Brokers (Roth): This is down 456 dollars to 9,968.  The monthly loss is 4.37%,  and the year to date gain is 20.02%.  I expect to make a tIRA to Roth conversion in before filing taxes for 2021.

HSA: This account is up 983 on the period to 13,638. That is a move of 7.76% on the month and 9.89% gain on the year.  I do not expect to make a tax advantaged HSA contribution this year.

Checking: Cash is down to 9,065 from 11,471. That is a 20.97% decrease from last month and 16.71% 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 have added about 700 dollars in new money to an ETH/GOVI liquidity pool.  I think everyone should have a small (not large!) amount of crypto currency as a hedge.  This account is up 3,706 on the month to 21,210, a gain of 21.17% and year to date gain of 174.75%.

Total investable assets come to 405,116 down 1.24% from 410,205 last month and up 47,640 year to date or 13.33%.

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 5,382 tax asset that I do not expect to make further contributions to at this time.

WITHDRAWAL RATE:

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 405,116 that is a withdrawal rate of 5.33%. I closed several options trades for a net gain of  $3,711 during the month of April and am pacing 234.68% of 21,600 from options trades year to date. Additionally, my income centric approach to investing includes 10,445 in expected distributions, dividends, and interest for the year or an additional 48.36% of the new budget. Total budget for the year was covered by 283.14%. This should more than cover my spending for the year.  Trading performance has been very good year to date.

SPENDING:

Spending was 1,711 for the month, which is slightly 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.

OTHER INCOME:

I picked up 300 dollars from my efforts on the local Water Board.  This  plus cash swept from taxable brokerage accounts come to $2,214 on the month.  I think I can reasonably keep up a $2,000/month pace.  I have a potential opportunity to work from home as a executive search recruiter.  I’ll know more by this time next month.

Devour your prey raptors!

Financial Transparency as 30APR2021

Never miss another opportunity to devour prey!

2 thoughts on “Financial Transparency as 30APR2021

  • May 5, 2021 at 8:39 pm
    Permalink

    Congrats on getting the WR down below 5.5%!
    I can think of several quality stocks and a junk bond that pay more than that.
    Next stop: 5%

    Next time the VIX gets low, consider some SPY long calls. The 415 strike expiring Dec. 15, 2023 (2.6 years from now) is $48.08, or 11.5% of the underlying. How often does the stock market not rise 11.5% across 2.6 years starting a year after a recession?

    Is there a way to report capital gains + interest + dividends as a percentage of your starting balance each month? E.g. your monthly performance before withdraws?

    Reply
    • May 5, 2021 at 11:12 pm
      Permalink

      Chris,

      The WR is more comforting these days. I have a (likely) new side hustle coming on in a few weeks that will provide a lot of security and maybe health insurance in the longer term.

      Regarding leap calls, you don’t necessarily have to wait for the VIX to get low. Just go 50% in the money. Your time value will be trivial and you pick up about 2:1 leverage. I’m using that approach with MDLA, NVTA, and SFM.

      I’ve never considered my monthly performance before withdrawals. The withdrawals are essentially mandatory as I have bills to pay and no material other source of income (so far). I suppose it is fairly simple arithmetic to add 1,800 to the total liquid networth number and use that as the basis for the WR calculation. Quick back of the envelope trial run shows that would currently lower the stated WR by 0.03%. Is it really material enough to break out? And over what period do I adjust? It becomes material if I back out a year’s worth of withdrawals. And huge if I back out since quitting the corporate world. I kind of think the whole point of the withdrawal rate is to show what is possible without a secondary source of income. Would that calculation be misleading to some readers? I’ll have to give it a long think.

      Reply

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