SHARPE INCOME … 47 More Times

Posted on Apr 11 2016 - 4:12pm by Dan

The original Sharpe Income post that explains this project can be found here.

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 $500. All in an effort to help out the small retail investor 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: $2,111.01
Total Sharpe Income YTD Return: – 0.66 %
Sharpe Income YTD Yield: + 0.44 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 5.50 %
S&P 500 Index YTD Return: + 0.18 %

House-Keeping / Maintenance
This week the entire capital deposit is placed in our “dry powder” category.  Simply put, capital we keep on hand that we can use in any aspect of the project in the future.

Within our embedded ‘Capital Gains‘ strategy we were paid our dividends for SHY, and for TLT.  That has been recorded on our spreadsheet; and counted as gains within that strategy on the PDF.  

So our cash on hand is reserved thusly

04-11-16-sharpe-trade-capital-allocations-for-the-dividend-project

Moving Forward
When you climb a mountain, you put one step in front of the other.  You just keep climbing.   One step.  Two steps.  Four hundred steps.  And so we keep adding capital, and purchasing assets when the time is right.   Briefly put, we are in the process of grinding it out.

But at the same time, look at what we have already accomplished.

We have taken an account from $500.00 and worked at building it into a tiny income producing account.  That has already been accomplished.  We simply repeat into the future what we have already done another 47 times, and we’ll be staring at a small $100,000 income producing account.

And as we noted in the link above we began this project with only $500.00 and only add $25.00 a week.  We began at the lowest range of what is possible.  This is all very scaleable.  If someone wanted to add $250.00 a week, they could make faster progress.  Because as time passes, this will all become easier, and easier.

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.

The Sharpe Income PDF breakdown for Week 72 can be found here (numbers computed off of Friday’s close) …

(Video Included. If you’re seeing this entry elsewhere and cannot play the video?  Click this link to go to the exact video entry …)

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