Wednesday, February 20, 2013

Level 3 options enabled

I have done covered call investing for a while. This is offering someone insurance to buy your stock if it sky rockets... Or offering your seat on a filled airplane... If the plane is full, your seat is worth lots of money... On the other hand, if the plane is relatively empty, you can offer up your seat, but no one will want it.

That's how covered calls work. You own a stock and offer to sell it at a certain price, in exchange you get a small premium for your efforts.

In a similar manner, there is another investment strategy called cash secured puts. It does the exact same thing except you don't own the stock. Instead you offer to buy that stock at a lower price... or insuring the seller in case the stock tanks. Using my plane analogy, you are offering to buy a ticket at a lower price... If the plane is full, you move on and wait for the next flight, but if it had room, you can buy the seat at a lower rate, and get a small premium for your efforts.

Just make sure you want to go to where ever the plane is headed. In like manner, make sure you like the underlying stock you are writing the cash secured put for. In any case, happy investing.

Sunday, February 10, 2013

2012 Expense Breakdown

Here's the breakdown for our expenses in terms of total expenses for 2012:

Home 30.0%
Food 16.2%
Gifts 16.2%
Education 13.5%
Auto 8.2%
Utils 7.0%
Health 3.7%
Misc Shopping 6.1%

Thursday, January 24, 2013

Finance Report for 2012

This past year was a year of expansion.  We spent a lot, grew a lot, and our family increased in number.  It was an interesting year with ups and downs, joys and sorrows.  Here's the latest financial report for 2012.

Mint changed the pie charts this year so that the actual numbers doesn't show up.  We'll break it down by expenses.



Here's a breakdown of the major expenses.

HOME:
 FOOD:
 GIVING:
 EDUCATION:


 AUTO:

UTILS:

HEALTH:




Unexpected increase in Education and Health this year that past year did not see.  This is due to various courses we took this year as well as baby#3 being born.  We did not travel much this year either mainly due to baby#3.

In comparison with 2011, we did ok.  Up perhaps 10%.




Sunday, January 6, 2013

Net Worth Dec 2012

Here it is: the final numbers for 2012.  This was a really good year in stocks.  The fiscal cliff scare might have proved more difficult to predict, but once there was some sort of positive mood, the whole market just upped and jumped.

In any case:


Monday, December 3, 2012

Net Worth Nov 2012


My TSP has broken the 90k mark.  It's taken a while, especially with putting in nearly 15% of my paycheck to it.  The market has been very volatile, with fear of the "fiscal cliff" and the ending of the bush tax cuts.  It's interesting, very interesting time of year.

Spending has been on cruise control, meaning I have been mostly hands off.  This has been one of those years where I have loosen the reins.  We shall see how we are at year's end.