The Sharpe Income category be found by clicking on that red ‘Sharpe Income’ tag next to this post title, or by clicking here.
We continue the discussion from the last entry.
We began this project with only $500. All in an effort to help out the small retail investor who doesn’t have a lot of money, understand the importance of growing an income account, as opposed to a trading account. Remember that these numbers are computed off of Friday’s close and are updated each week. It’s live … as it happens …
Total Sharpe Income Balance: $4,425.01
Total Sharpe Income Project Return 2016 Forward: +13.12%
Total Sharpe Income YTD Return: + 5.67 %
Sharpe Income Total Yield: + 5.28 %
Sharpe Income YTD Paid Yield on Cost: + 2.29 %
Total Sharpe Income YTD Maximum Draw-down: – 1.53 %
iShares Barclay’s IEF YTD Return: + 3.00 %
iShares Barclay’s IEF Total Yield: + 4.43 %
S&P 500 Index YTD Return: + 12.53 %
S&P 500 Index YTD Maximum Draw-down: – 2.61 %
We were paid a Union Pacific (UNP) dividend last week. This has accounted for on the spreadsheet as part of our ‘Income Asset’ dividends. We were also paid an IVV dividend. THis has been accounted for on the spreadsheet and records as part of our ‘Trading Segment’ dividends.
Again … we are going to place 100% of this weeks ‘capital deposit’ in the category for ‘Reserve Cash’ but it is ‘segmented’ or ‘earmarked’ or ‘reserved’ for the cash we will put towards the embedded ‘capital gains’ or ‘trading strategy’ that is within the project. The next time we ‘re-balance’ that section of the project, we will then pour what we have saved up on the side, into said ‘trading’ segment of the project.
Thus, the cash in the project is reserved thusly …
Total Cash: $1,068.64
Income Assets Cash: $120.96
Capital Gains Cash: $522.68
Reserve Cash: $425.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $125.00
For Simple Reserve Cash: $300.00
It is the beginning of a new month, so when I have a spare second, I am going to type of a PDF for the project. Until then? We keep ourselves to this same ‘path’. Segment capital deposits so that they are eventually poured into the trading segment. Collect our dividends. Record the results.
The link to the Google Drive Spreadsheet that you can view, that we will edit, build upon and refer to over time can be found at this link.
The supplemental information on the forums of the Short-Term Trading Course describes the process behind the Sharpe Income project.
We continue the Sharpe Income project with this next entry.