The Investment Road to Freedom

May 31st, 2013 at 7:10 pm

May 2013 – Month In Review

The goal of the Investment Road to Freedom Fund is to grow my accounts to a value that will enable me to live a comfortable life in Retirement. In the years before I reach retirement age for withdrawals my Taxable account will be the main source of income. This account involves selling puts and covered calls. My long term goal is for this account to increase by 1% a month or 12% a year using dividend, option and capital gains income as well as new deposits. As my balance is low I am easily able to pass this target. After my Taxable account is my 401K. I contribute 6% of my paycheck to this and receive a 3% match from my employer. Without this match I would not contribute to the 401K. This is currently my biggest account. Lastly there is my Roth IRA. This account I contribute the least amount to but it has the same 1% a month goal as the Taxable. I have other forms of income/ investment as well including a 10 year pension from when I lived in the UK, Precious metals, EF and a recently opened Lending Club account.

New Purchases: None

Sales: $66.56 Profit
Sold 22 shares of Microsoft at $33.34 each. This resulted in a 10.1% profit in 217 days or a $66.56 profit.

Option Trades: $60.04
Microsoft (MSFT) – STO JUN2013 $32 put at $0.55 x 100. This earned me $40.01 after commission. This is in my Taxable account.
Ford (F)– BTC MAY2013 $14 covered call at $0.33 x 100. This cost me $47.98 after commission. This is in my Taxable account.
Ford (F) – STO JAN2015 $17 covered call at $0.83 x 100. This earned me $68.01 after commission. This is in my Taxable account.

Dividends: None

Deposits: $769.80
Disappointing month for new deposits. Out of this figure $309.80 went to my 401K, $400 went to my taxable account and the remaining $60 to my Roth IRA.

Investment Road to Freedom fund value:
The fund value stands at $19486.10 which is up 5.49% from the previous month.
The breakdown of the individual accounts show

  • 401k = $8853 +5.68%
  • IRA = $3082 +2.66%
  • Taxable = $4818 +11.61%
  • Other = $1948 -4.60%
  • EF = $783 +6.97%

Credit Card Debt: $4058.89
I need to work on lowering this.

Loan for Sofa: $868.03
We purchased a new sofa back in September with 12 months free interest. I’m decreasing this at a nice rate. This will be gone in a few months.

Car Loan: $34346.73
Well what happened here :( Last month this was zero! You have probably worked it out by now. I got a new vehicle – a new Tundra Truck. And it is awesome! But I cant wait to pay this off.

Mortgage: $169760
Our monthly payment is $1391. The last payment is still pending. I expect about $238 to go to the principal.

Income from Pay: $3692
This is my take home amount.

Income from Credit Card Rewards: $100
This is from my American Express Blue Cash Preferred card. I have earned $378.69 in credit card rewards this year.

Net-worth: $8638
Well the new Tundra took a huge chunk out of my Net-worth. Not even going to bother working out the decrease percentage from last month.

Lending Club:
New entry this month. I’m not including this in my Fund value. I have $75 invested so far in LC and received $2.20 in payments since April 2013. I consider it much more risky than my stocks as the potential for default is high. I am looking to invest $25 every month until the end of 2014. At that point I will re-evaluate my view of the Lending Club. I do hate that the calculation of ROI is pretty crappy on the site.

Summary:

Big news this month was the purchase of a new vehicle on Memorial day. It was also my best ever month for option income beating my previous record by $21.03. For June I have stocks that will pay dividends.Β  Hope everyone had a great month!

 

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2
  • Liquid
    12:34 am on June 3rd, 2013 1

    Nice progress with your options there πŸ˜€ Peer to peer lending clubs in the US is really becoming quite popular. Too bad for me I still haven’t found anything similar or an alternative in Canada yet. It does sound more risky than stocks, but you seem to know what you’re doing. Wow, I’m so jealous of your new truck. Did you get the really beefy V8?

  • investmentroadtofreedom.com
    5:36 pm on June 3rd, 2013 2

    Thanks Liquid. Lot of folks still unsure about LC. I plan to keep it a very small part of my overall financial world.

    Yep the truck is the V8. Lots of power :)