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  • 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

    • 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 😉 )

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      • 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…

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    • 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

  • eurfi 0:11 on 2017-02-02 Permalink | Reply  

    January 2017 – Options Income 

    A few weeks ago I came across the blog Options Hunting. The author compiles a list of monthly income by selling options. As I mostly sell options (I also have a few dividend stocks, mostly REITs), I wanted to take part in the friendly “competition”.

    I also found a German blog with another list: Easy Dividend.

    As this is my first monthly post, let me explain a little bit what I do. I have a simple strategy, were I sell far out-of-the-money options on the E-Mini S&P 500 futures. These options usually have 90 – 110 days left till expiration and I select the strike price to get a premium of 4 – 5 dollars. My profit target is 50 %. I have roughly 40k in the account (this account is in US Dollar – my other accounts are all in Euros). My expectation is around 2 % per month.

    With my main accounts I do complex options positions. These are multi-legged constructs. An Iron Condor is such an example (which I do not trade – I do not want to go into too much detail).

    Currently, my book keeping is not good enough, so I can only give MTM numbers from month to month. But this also includes dividends, stock gains and EUR/USD gains. So for the moment, I will leave this part out (the MTM numbers are in my net worth posts). But I plan to later include it – especially because the account size is bigger there.

    Far OTM option selling (MTM)

    • January 2017: 1.9k

    Far OTM option selling (closed trades)

    • January 2017: 1.6k

    January was a fabulous month. I gained over 4 % – double what I normally would expect.

    I only look at MTM changes and don’t care about closed trades. But I mention them here, because all the numbers of other traders seem to be based on this.

     
  • eurfi 20:44 on 2017-02-01 Permalink | Reply  

    January 2017 – Net Worth and Expenses 

    The first month of the new year is already over. I changed some accounting tactics and January will be from now on a very expensive month. In the past I “distributed” certain expenses (pension contracts in this case) evenly over the year. I pay them in January and from now on I will fully book them in January.

    In a comment on 1500 Days I mentioned 370k as our current net worth. Was a little bit too optimistic, but close enough to count as rounding error. I missed it by 400 Euros:

    • brokerage accounts 299.0k (+3.5k)
    • ETFs 12.0k (+0.0k)
    • cash 15.4k (-7.7k)
    • alternative investments 44.3k (+9.0k)
    • taxes -1.1k
    • total 369.6k (+3.9k) [+1.1%]

    Monthly Expenses

    • January 5.2k

    In 2016 our expenses were 35k (34.7k). In 2017 I hope to be around 33k. So, apart from January, our monthly expenses should be around 2.5k to reach this.

     
  • eurfi 10:49 on 2017-01-21 Permalink | Reply  

    Answering questions about my part-time work 

    Whenever I feel a little bit bored and sitting in front of my computer I browse the “Ultimate List of Blogger Net Worth” for new entries. And so I stumbled upon http://retireinprogress.com/. I commented on his post about working 80 %. He starts working 4 days a week in January 2017, for me it ends.

    After some back and forth he asked some very interesting questions, that warrant a longer answer:

    Do you consider your part-time experience a failure for your entrepreneur endeavor or for your overall life quality?
    What I read is that you ended up being lazy in the 20-40% time you got back compared to a 100% position. What makes you think that when fully FI you won’t be lazy? What makes you feel that when fully FI you won’t fill your life with small chores, errands and meaningless activities?

    The answer is not easy or straight-forward for me. Let me explain my current situation a little bit: I’m feeling very stressed. Time is too limited between multiple jobs (“main job”, side job, side hustle, active investing) and family and house. We prioritise the kids very high, so besides working almost everything else is neglected (e. g. house is dirty, chores get done on the last minute). I see this with worries. My wife not so much – she thinks everything is “fine”.

    I would like to escape this stress by quitting my main job. This would give me plenty of time for all the neglected stuff and also for my interests. After talking with my wife about this, there are two ways for me to achieve this: net worth over 600k or having a “business” with at least 1,000 Euros profit a month. If all goes like planned, we might have a net worth of 600k mid 2020. This would mean 3.5 more years to endure. So, the business option could be a short-cut time-wise. I’m still working on it, but time is more limited than last year.

    Now, with the stage set, let’s answer those questions:

    Do you consider your part-time experience a failure for your entrepreneur endeavor or for your overall life quality?

    Yes, it is clearly a failure for my entrepreneur endeavors. My overall life quality was better. But having the goal to work on your business and in the end not doing it, gives you guilty conscience. So I did not fully enjoy the leisure days.

    What makes you think that when fully FI you won’t be lazy?

    Isn’t that the point of being FI? Joke aside, I have a lot of interests, that are parked now, because I don’t have the time. I’m quite certain I would work on them. And I would spend more time during the week with my kids.

    What makes you feel that when fully FI you won’t fill your life with small chores, errands and meaningless activities?

    I guess a big part (at least in the beginning) would actually be small chores and errands. There is so much neglected. Every room I enter I see stuff that should be done. 2017 I would like to work more on these things, because some of them can be done while working full time. It is a matter of organisation (and goal-setting).

    Sorry, this was a lengthy post and in the end I’m just hoping. Nobody knows how it is really going to be. I accept the critic that my free days 2016 showed a more lazy future. I counter that with a need for decompression. After that period I will be productive again.

     
    • Mr. RIP 11:34 on 2017-01-21 Permalink | Reply

      Thanks for your answers EurFI, the picture is clear now 🙂
      I can see that with just a single extra day available per week you’d just do urgent but not important stuff and will reach your long term goal later, which is not good for now.

      Like

    • Team CF 15:58 on 2017-01-26 Permalink | Reply

      Same as you, I’ve too many things I would like to do and feel that when FI I would finally have the time to do those. I have absolutely no worries that I can fill my time (and then some). You would also have the ability to schedule all these things the way you want, this gives the feeling of freedom which is something I also look forward to in FI.
      What will likely happen is that Mrs. CF will continue to work (because she loves it), while I persue other opportunities. Might already happen in 2018….well before FI!

      Like

      • eurfi 18:53 on 2017-01-26 Permalink | Reply

        Already in 2018 – congratulations.
        I have (theoretically) this possibility as well. But I need another income stream with about 1 – 1.5k per month. Then my wife would let me leave my jobs and pursue the business. Currently at zero, unfortunately.

        Like

    • Financial independence 3:26 on 2017-02-01 Permalink | Reply

      First of all – many thanks for sharing. i would perceive 600k a risky scenario , as it does not seems to cover higher/cumulative inflation over time, potential loss and fact that it is much more difficult to get a job once you have been out of it for a significant period of time.

      as we have similar situation st home in regards to chores , i think it is matter of priorities and something will always take precedence, as they are already low on priority list. this needs to be sorted in the current constrains, if considered important.

      Like

      • eurfi 21:40 on 2017-02-01 Permalink | Reply

        I agree with the 600k. Especially after I now realised, that our FIRE spending won’t be 2.1k (as originally expected), but more like 2.6k. On the other hand, leaving my job will open new income opportunities. And as software developer (who intends to continue programming) I will find a job again. I’m convinced I could make a killing as freelancer (if I wanted to work full time).

        So, I consider 600k as a starting point for discussion, where I could (and probably would) leave my job. My wife wants to stay – even better for the math.

        Like

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