Updates from March, 2017 Toggle Comment Threads | Keyboard Shortcuts

  • 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.

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    • 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 :-)))

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    • 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…

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  • 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

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      • 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.

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      • 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…

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