Investing, Monthly Reports
MDTM Investment Report

MDTM Investment Report for August 2016 – All Quiet on the Investing Front

This is a report on my current investments and performance for August 2016, which includes stocks, options, and peer-to-peer lending (P2P). In the future, the investments will include real estate. I also did a separate monthly report for August to show my current financial health.

Investment Summary for August

Not much happened with my investing accounts for the month, as evidenced by the title of the post…”All Quiet on the Investing Front.”

There just wasn’t much going on. Very little dividend income came in. No options trades were started or expired. The P2P continued but was also rather quiet. And I don’t have any real estate investments yet. Either way, taking stock of my investing status each month helps keep me on track.

One move I made was to move my rollover IRA from Fidelity to Scottrade, where I am active and free to invest in almost any vehicle I choose, unlike Fidelity. Now that the money is in Scottrade, I will eventually move it to my Roth IRA, probably in September. There will be a small tax hit by moving the funds to my Roth IRA, but it’s only about $2,600 in the account, so the tax hit is minimal.

I also opened up another Roth IRA account this month, this one for my wife. I began funding it, but no trades yet. That means I have a total of $11,000 that I can make for Roth IRA contributions per year.

Beyond that, I had to make changes to my investing calculations that I use for tracking things. I realized that some numbers looked off from last month, so I went back to the spreadsheets and found some errors. I talk about the changes below.

You can see all of the companies I use for investing on my Resource Page.

Investments for August 2016

Let’s jump into the investment numbers, broken down by the stream of income source that the returns come from.

I earned a total of $16.98 for August 2016. That includes the following:

• Dividends = $8.63
• Options Premiums = $0
• Stock Returns = $0
• Lending Club Return = $8.35
• Total = $16.98

Here is the breakdown on each stream of income category…


I received dividends from two stocks this month, OAK and VZ. I currently own many dividend paying stocks, but the quantity changes depending on the strategy for each particular account.

• Earned $8.63 with a yield of 1.2% for August
• Earned $68.44 with a yield of 1.6% for YTD
• *My yield is based on dividends collected divided by total amount invested in the stocks.

My primary objective with the brokerage account is to buy dividend paying stocks in lots of 100 shares, and then to sell covered call options on those stocks. I may wind up holding these stocks for months or years, or they may get called away before I even collect a dividend. I’m buying them with instant profit in mind, using the strategy to build up my account.

In the Roth IRA accounts, however, my objective is to buy dividend stocks and hold them for longer. I will look to use covered calls down the road, but I will likely choose out of the money strike prices in order to collect premiums and hold onto the stocks.


I made no options trades for August, but have three positions expiring soon. I currently hold the following options, all covered calls on the underlying stocks, and all roughly in the money strike prices…

GES SEP 16 2016 16.00 C
GPT SEP 16 2016 10.00 C
NOK SEP 16 2016 6.00 C
NOK OCT 21 2016 6.00 C
MHLD FEB 17 2017 15.00 C

• Earned $0 with a return of 0% for August
• Earned $103.50 with a return of 2.2% for YTD
• *My return is based on option premiums collected divided by total amount invested in the underlying stocks.

The goal with the brokerage account is to have one option expiring per month. That will take some time for me to build up the necessary funds. The three expiring options are close to the strike price. With only a few weeks left to expiration, I’m not optimistic that the positions will get called away. That means I will be looking to do more covered calls soon on those stocks.

I view these returns as similar to dividends, where it is income received without any consideration for stock appreciation. The covered call strategy is very conservative and I will continue employing it wherever possible.

Stock Returns

Here I am cataloging any closed out stock positions, any realized gains or losses for anything that I sold during the month. The YTD number changed because I had the wrong calculation last month, where I was including dividends and options in the overall number here. This month I am showing purely stock gains/losses from the sale of stock. The dividends and options will be added to the overall income number at the bottom.

• Earned $0 with a return of 0% for August
• Earned $360.15 with a return of 8.9% for YTD
• *My return is based on profit/loss on sold stocks divided by total amount invested in those stocks.

Sitting on good returns for the year, but added nothing to it this month. There is potential to add to returns with the options trades, but it doesn’t look like I will have any for September. The stocks could spike up before option expiration, but we’ll see.

Lending Club

I continued investing a minimum of $25 per week in this account, which is the minimum amount I can invest in a note. I also reinvest my payments, investing in another note every time my account accrues $25. For August, I deposited a total of $125.

I had to adjust the numbers I report here. Last month I was including principal plus interest as part of my return. I changed that to show just interest as part of the return. That is the actual return.

• Earned $8.35 with a return of 1.2% for August
• Earned $31.78 with a return of 4.4% for YTD
• *My return is based on payments collected (interest) divided by total amount invested in loans.

Total Investing Returns

Overall, I have deposited $525 to investment accounts for August, and a total of $5,700 year-to-date. I started the year at $0 in my investment accounts.

Again, I had to make adjustments to my calculations from last month. I got a little too complex with my spreadsheets and had to simplify things, for my own sanity. For example, instead of trying to calculate the total investing return using how much was invested in each closed out stock investment, I used the total money I deposited into investment accounts instead. This gives me more of a return-on-investment (ROI) number rather than a straight stock investment return, but it makes sense to me since I’m totaling up various types of investments. Plus, I want to track purely how much I make with income versus how much I invested, and this is the easiest method.

• Earned $16.98 with a return of 1.2% for August
• Earned $563.87 with a return of 9.9% for YTD
• Average income per month is $70.48
• *My return is based on total income divided by total amount invested.

I’m pleased with my overall returns to date at 9.9%. August didn’t really add anything to the bottom line, but I continued to make investing deposits which will bring future returns. It’s all about investing now for returns in the future.

The returns aren’t earth shattering, but for 8 months of investing after starting at $0, I have $70 of income coming in per month. I’m happy for now. I would love to double the returns and have dreams of hitting $500 and $1,000 per month with the average income number.

Once I complete the refinance on my house (should close in September), I will free up more monthly cash flow, allowing me to invest more each month. I will breathe easier once that transaction is complete.

The overall returns will continue to increase for a few more months as my dividend stocks kick in and start paying quarterly dividends and as my Lending Club notes kick in and start paying interest. There is a similar ramp up to both dividend and note investing, and patience is key.

I hope to get my total returns at over 12-14% for the year. We’ll see if I can get there. I also hope to hit an average of $100 of income per month. That is certainly a stretch goal and will be tough to hit at this point, but I’m optimistic.

September should bring more returns with potential stock returns and potential options premiums as I have three options contracts expiring next month. That could help push the overall returns higher.

Check out my Resources Page for more on all the companies I mentioned.

Leave me a comment and let me know what you think. Or join me on Twitter for more of my financial ramblings. Thanks for reading.

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About Brian Stephens

Brian is on a journey from massive debt to real estate mogul. Join him as he stumbles and fails on his way towards long term success. Debt isn't pretty and turning it around won't be either. His primary goal here is to tell the story and network with like minded people who want financial independence through real estate investing.

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