Recent Updates Toggle Comment Threads | Keyboard Shortcuts

  • eurfi 22:31 on 2017-07-01 Permalink | Reply  

    June 2017 – Net Worth and Expenses 

    Last month I lamented about the weak Dollar. I can repeat that for June, but this time there is still a nice gain left.

    • brokerage accounts 297.3k (+4.4k)
    • ETFs 16.6k (+0.5k)
    • cash 10.3k (+0.9k)
    • alternative investments 65.7k (-0.1k)
    • taxes 2.2k
    • total 392.1k (+6.6k) [+1.71%]

    In the first half of the year I achieved a 26.4k gain. Projected to end of 2017 this would mean a net worth of 418.5k. I’m not satisfied with my investment returns so far, let’s try to beat this number.

    Monthly Expenses

    • January 5.2k
    • February 2.5k
    • March 2.5k
    • April 3.3k
    • May 3.1k
    • June 2.1k

    June seems to be a cheap month for us in general. I like that.

     
  • eurfi 22:58 on 2017-06-03 Permalink | Reply  

    May 2017 – Net Worth and Expenses 

    The weak dollar (and bad investment performance) led to my first negative month this year. I was hoping to have 12 positive months this year. A few months before were barely positive (but only positive thanks to my high savings rate).

    • brokerage accounts 292.9k (-5.4k)
    • ETFs 16.1k (+1.0k)
    • cash 9.4k (+2.6k)
    • alternative investments 65.8k (+0.1k)
    • taxes 1.3k
    • total 385.5k (-0.2k) [-0.05%]

    I lost over 5k this month, despite having a good month on my put selling.

    Monthly Expenses

    • January 5.2k
    • February 2.5k
    • March 2.5k
    • April 3.3k
    • May 3.1k

    It looks quite challenging to reach my projected yearly expenses of 33k. At the moment we are on track for 36k.

     
  • eurfi 22:45 on 2017-06-03 Permalink | Reply  

    May 2017 – Options Income 

    May was a good month on dollar basis, in Euro it was a loss of 600 Euros. I stopped trading my second account. I will redeploy to another broker soon.

    Far OTM option selling (MTM)

    • January: +1.9k
    • February: +0.5k
    • March: +0.9k
    • April: +1.1k
    • May: +1.1k

    Far OTM option selling (closed trades)

    • January: +1.6k
    • February: +0.8k
    • March: +0.4k
    • April: +1.5k
    • May +0.4k

    I’m looking at MTM numbers, and 1.1k is above my target of 2 %.

     
  • eurfi 7:39 on 2017-05-03 Permalink | Reply  

    April 2017 – Net Worth and Expenses 

    April was looking quite good in the latter half of the month, but the strong rally after the French election was not good for my (slightly bearish) option positions. My stocks – mostly REITs – did not participate in the rally, instead they lost as well.

    • brokerage accounts 298.3k (-4.5k)
    • ETFs 15.1k (+0.9k)
    • cash 6.8k (-12.9k)
    • alternative investments 65.7k (+20.1k)
    • taxes -0.2k
    • total 385.7k (+3.4k) [+0.9%]

    I moved some money around, so the brokerage accounts actually show a small gain (about 0.5k). Also, the huge increase in alternative investments is by investing new stuff, not actual gains. I’m currently getting around 300 Euros each month out of it (before taxes).

    Monthly Expenses

    • January 5.2k
    • February 2.5k
    • March 2.5k
    • April 3.3k

    April looks expensive, but there is 1.1k for our first cruise included.

     
  • eurfi 7:01 on 2017-04-29 Permalink | Reply  

    April 2017 – Options Income 

    April was a very good month for my put selling strategies. Unfortunately, the weaker Dollar reduced my profits from 1.900 Dollars to just 400 Euros.

    Far OTM option selling (MTM)

    • January: +1.9k
    • February: +0.5k
    • March: +0.9k
    • April: +1.1k

    Far OTM option selling (closed trades)

    • January: +1.6k
    • February: +0.8k
    • March: +0.4k
    • April: +1.5k

    Second account (MTM)

    • March: +0.3k
    • April: +0.8k

    Second account (closed trades)

    • April: +1.1k

    The relief rally after the french election was very positive for my put selling strategies. Unfortunately, my main accounts suffered from the strong up move. Even the stocks I have (mostly REITs) could not profit.

    The challenge now is to (quickly) fill the inventory to be able to earn money in May. Yesterday I opened a first position and intent to open at least two more next week.

     
    • Financial Independence 11:43 on 2017-05-03 Permalink | Reply

      Hi eurfi,
      I quite benefited from strong euro and moved a lot from eur to weaker usd. I do not think that PIGS and the Brexit will help the stability. Congrats on the first cruise. I have been looking into one myself but decided to postpone it for the time being.

      Like

      • eurfi 14:30 on 2017-05-04 Permalink | Reply

        I can report afterwards how we liked it. Maybe we do it too early – one kid is still on diapers…

        Like

        • eurfi 23:01 on 2017-06-03 Permalink

          There is day care for kids on board. Unfortunately they did not accept our youngest kid (because of the diapers). But next year it will be a great vacation. We all liked it, our kids more than my wife. But it was okay for her too.

          Like

    • Team CF 14:14 on 2017-05-08 Permalink | Reply

      That is quite the options income for April! Well done. It already covers about a third of your expenses for the month (pays for the cruise charge actually 😉 )

      Like

      • eurfi 23:07 on 2017-05-08 Permalink | Reply

        I look at MTM numbers. So, 1.9k is usually more than half of our expenses. Yes, the cruise is covered. 🙂
        April was really good for put selling.

        Like

  • eurfi 23:10 on 2017-04-03 Permalink | Reply  

    March 2017 – Net Worth and Expenses 

    During March I had the impression it would be a slow month (meaning: not much progress), but in the end it turned out 2.3 % gain.

    • brokerage accounts 302.8 (+3.5k)
    • ETFs 14.2k (+1.3k)
    • cash 19.7k (-3.7k)
    • alternative investments 39.7k (+5.9k)
    • taxes 0
    • total 382.3k (+8.2k) [+2.2%]

    Like last month, if there are changes in “cash” and “alternative investments” I bought or sold some investments (similar to peer-to-peer lending).

    Monthly Expenses

    • January 5.2k
    • February 2.5k
    • March 2.1k (Update: 2.5k)

    I really tried to stay below 2.0k, but I didn’t make it. I had some purchases, that I delayed or didn’t make, but in the end I was about 130 Euros over my goal. Update: I forgot one expense (it was on credit card and the bill came on 5th of April). We are going on a cruise soon and I partially paid for the trip.

    Quarterly Goals

    Every quarter I set some goals (or more like a direction) for the upcoming quarter. In Q2 I would like to spend more time with my kids outdoor (in the forest or by bike). Another topic is “simplify” – I would like to get rid of some stuff. My wife already sorted out her clothes (a huge pile). I have a hard time to say good bye to still functional clothes. (Although my wife has sometimes a different opinion about what is still okay and what not.)

     
  • eurfi 20:07 on 2017-04-01 Permalink | Reply  

    March 2017 – Options Income 

    Like mentioned last month, I opened a new account and trade a similar strategy. The starting capital is 20k (US Dollars).

    Far OTM option selling (MTM)

    • January: +1.9k
    • February: +0.5k
    • March: +0.9k

    Far OTM option selling (closed trades)

    • January: +1.6k
    • February: +0.8k
    • March: +0.4k

    Second account (MTM)

    • March: +0.3k

    There are no closed trades yet in this account.

    March was in line with my expectations. I did not trade the full position in my second account (testing waters). In an average month I expect to earn 900 + 400 (MTM – market-to-market).

     
  • eurfi 9:58 on 2017-03-24 Permalink | Reply  

    To Sprint or not to Sprint 

    At the end of December I talked about my last free day (I was working part time then). I also outlined my plan about a “sprint to the finish line”. With “conservative” numbers I ended at my target net worth number (600k) in mid 2020. Now, “conservative” meant around 1 % return per month. I’m selling options, so 1 % is certainly achievable, but no given.

    Also, to quit my job earlier I wanted to build a second income stream. I had this plan for a very long time now (years), but still have almost nothing to show.

    A few weeks ago I had an epiphany: Could I already live like in FIRE, while still working? (My work is very relaxed.) And what would it look like if I had no stock market income at all?

    So I calculated with (almost) no stock market income (just around 2 % per year) and reached 600k end of 2022 – only 2.5 years more! (With around 4 % per year I get there end of 2021.)

    I also made a list of things I would like to do when FIRE (spending time in nature, spending time with my kids, programming on private projects, eating healthy, sleeping enough, not stressing about money). And a lot of them are at least somewhat possible even now.

    So I decided to not (aggressively) pursue my second income stream goal. I will still program on my side project, but mainly use it for my own.

     
    • Financial Independence 11:47 on 2017-05-03 Permalink | Reply

      Looking at you I always comparing fat vs. thin. Thin is easier to move, jump around and need less weight to carry around. Although I could not imagine myself living on 2K a months (not with mortgage and kids) but glad that you could do it.
      I did calculate it recently and will be quite lucky if we could retire in 30 years time at the current progress :-)))

      Like

    • eurfi 14:28 on 2017-05-04 Permalink | Reply

      Yes, we have lots of common things. Similar net worth, kids, etc.
      The 2k are when the mortgage is gone. Also, it might be more like 2.5k (because of our damn pension contracts). It also does not include buying a new car (which we would like to do once I retire) – a camper van.
      But on the positive side, being retired for me just means quitting my day job. I would continue to earn money with my side job and by selling options (which hopefully achieve more than 4 % p. a.) And my wife would continue working. That is the reason I keep my target number at 600k and do not increase it to 750k (4 % for 2.5k per month). Heck, I could even quit now, but my wife is not comfortable with that thought…

      Like

  • eurfi 23:47 on 2017-03-02 Permalink | Reply  

    February 2017 – Net Worth and Expenses 

    February was a quiet month. In my brokerage accounts I’m mostly in cash – so no risk, but also no income.

    • brokerage accounts 299.3k (+0.3k)
    • ETFs 12.9k (+0.9k)
    • cash 23.4k (+8.0k)
    • alternative investments 39.7k (-4.6k)
    • taxes -1.2k
    • total 374.1k (+4.5k) [+1.2%]

    Monthly Expenses

    • January 5.2k
    • February 2.5k

    Like I said last month, our expenses should be around 2.5k each month. Notable expenses were 410 Euros for car inspection and 160 Euros for IKEA. Maybe March will be a very cheap month – below 2.0k might be possible.

     
  • eurfi 14:25 on 2017-03-01 Permalink | Reply  

    February 2017 – Options Income 

    January was a very good month. In February I let it slide. I did not follow my own rules and was under-invested. So the result is also lower than usual.

    Far OTM option selling (MTM)

    • January: 1.9k
    • February: 0.5k

    Far OTM option selling (closed trades)

    • January: 1.6k
    • February: 0.8k

    In March I will report about a second account, where I trade a similar put selling strategy. The starting balance is 20k. All numbers are in US Dollar.

    Like I said above, I did not follow my own rules in February. I did not open new trades as soon as old trades expired (thought the market is too high, IV too low). And there even was a period of 10 days where my account was empty! In my backtests I reopen on the same day of the exit. I even tested waiting one day – it results in less total profits. But still, in real life I think I’m more clever. This is an area I’m working on.

     
    • Investment Hunting 7:34 on 2017-03-02 Permalink | Reply

      Great results

      Like

      • eurfi 16:59 on 2017-03-02 Permalink | Reply

        Thanks. Actually I’m disappointed, both about not following my rules and the – in my opinion – not so great result. But the year has 10 months left to make it better…

        Like

    • Kilian 20:39 on 2017-03-10 Permalink | Reply

      Hi, I found you through easydividend’s link. I love how you also care more about MTM than closed trades. In my mind, MTM is the relevant measure. Options’ premium is dependent on the principal – in this case the strike of the underlying. If this underlying erodes, we get less premium. Therefore, reporting both numbers seems to be the sensible thing to do! 😀

      I wish you all the best for the months to come.

      Like

      • eurfi 22:44 on 2017-03-10 Permalink | Reply

        In a bull market (like now) the difference may be small, but in a bear market the difference might be huge (when you were assigned to a much higher price).
        Thanks, February was weak for me. March might be better…

        Like

c
Compose new post
j
Next post/Next comment
k
Previous post/Previous comment
r
Reply
e
Edit
o
Show/Hide comments
t
Go to top
l
Go to login
h
Show/Hide help
shift + esc
Cancel