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. The following numbers are taken from our PDF that is attached below. Remember that the numbers are computed off of Friday’s close …
Total Sharpe Income Balance: $3,221.20
Total Sharpe Income YTD Return: + 7.59 %
Sharpe Income YTD Paid Yield on Cost: + 2.47 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: – 0.40 %
S&P 500 Index YTD Return: + 10.48 %
S&P 500 Index YTD Maximum Draw-down: – 11.24 %
Let’s first cover our basic house-keeping.
We have placed this weeks ‘capital deposit’ in the category reserved as “dry powder”. Cash that we simply have ‘on hand’ and can move about as we wish. Of that cash, 85% of the capital deposit was placed as reserved for a future deposit towards the ‘capital gains’ strategy. 15% of the capital deposit is placed towards reservations for the purchase of more income assets. After such a deposit, we then had $100.00 in ‘Reserve Capital’. It is at that point, that we move $15.00 of that to the ‘Income Assets’ category, and $85.00 of that $100.00 is being moved to the ‘Capital gains’ strategy category. Leaving a $0.00 balance in the ‘Reserve Capital’ category.
Beyond that, we’re just looking to the end of 2016. The markets will no doubt be light as we approach December 31, 2016. We have one more dividend that will be paid for year end; which will increase our yield. Beyond that, I’m watching to see if we buy “Income Asset #3” … or any of the ETF’s for the ‘Capital Gains’ category.
We’re allowing time pass, and counting the days until 2017.
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.
We continue the Sharpe Income project with this next entry.