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 …
Sharpe Income Balance: $1,731.91
Sharpe Income YTD Return: – 3.51 %
Sharpe Income YTD Yield: +0.00 %
Sharpe Income YTD Maximum Draw-down: – 3.51 %
IEF Benchmark Return: +1.50 %
S&P 500 Index Return: – 5.98 %
For the purposes of this particular project, this week we are changing up how we dispense the capital contribution.
We are placing the entire deposit towards the cash we have reserved to buy a bit of Wells Fargo (WFC). As we said some time ago, we wanted to work a bit more our income assets in 2016. At the moment, I think the best opportunity is presenting itself with Wells Fargo (WFC), and as yet, the project has not purchased this stock. I don’t think Wells Fargo (WFC) is presenting itself as a ‘buy’ quite yet. But I want to be ready when that time comes.
We are also taking cash from other areas, such as our “Dry Powder” and moving it towards the cash we have reserved to buy Wells Fargo (WFC). You will see this reflected in the capital allocations for the project …
Also of note, is that we will not be paid TLT dividends in January. This is usual for the month of January. However, we did receive a special IVV dividend, which has been accounted for. Remember, that dividends from the ‘capital gains’ strategy are not counted as ‘income’ for the project. Instead, they are simply reported as part of the progress of said strategy.
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.