This is a diary of brokerage transactions, coupled with a description of the investment strategy.
Accounts:
Warburton holds multiple accounts. Here is the summary, including the obvious ones.
1. Social Security. Richard and Frances each have social security accounts.
Richard's account is accessible on line as rwarburtondavis with pw 124N.Sunset.
Richard's account pays $40K per year (2014 basis) and gets COLA increases. The equivalent account value is approximately $600K. Fran's is about half that. SSN is 115349003
2. AT&T Pension. Richard gets a pension from AT&T. The proceed is about 12K per year. The detail is that the money is in two accounts. One from Mobility and one from old T.
3. There is a Fidelity 401 K. The amount is increasing, but was over $100K at EOY '14. It is divided into two pieces. The 401 K itself is an AT&T funds vehicle. These are conservative investments with low return. There is a "BrokerageLink" account that is invested in more aggressive ETFs and a stock or two. Richard manages the brokerage link account. Fidelity manages the 401 K pieces. This account is subject to a 10% mandatory annual withdrawal starting in 2016.
4. There is a small TD Ameritrade account. This account is at about $12K at EOY '14 and may not grow much. The idea was that this would be the account for investing SS payments while we were "double dipping". But the idea shifted to investing in the Charles Schwab program (below). What is in the TD ameritrade account is investment in gold, plus very speculative investments in high growth ETFs. This account is set up for options trading.
5. There is a Charles Schwab account. The idea here is simply to build money into the Intelligent Portfolio offering with the goal of a $50K account by EOY '15.
In addition to this equity, the equity in the home is about $400K after sales expense.
The overall strategy is simple... Live off Social Security and the AT&T pension. Of the remaining brokerage accounts, earn more than 10% and withdraw about 10% per year. That's travel, second home, etc.
