Margin Management

Purpose

Monitor and manage margin-living strategy by tracking margin balances, interest costs, dividend coverage ratios, and portfolio-to-margin safety thresholds. Provides data-driven scaling recommendations based on strategy milestones.

When to Use

Use this skill when:

Importing new Fidelity balances CSV
Updating margin balance or interest rate
Calculating coverage ratio (dividends ÷ interest)
User mentions: "margin dashboard", "margin balance", "coverage ratio", "margin strategy"
Assessing margin scaling decisions
Checking safety thresholds

Personal Strategy Inputs

Real dollar amounts, dates, and private strategy targets must come from

.env

(see

.env.example

). Use

python-dotenv

or shell environment variables; do not hardcode personal numbers in this skill.

Required

.env

values

```
FG_STRATEGY_START_DATE
```

FG_MARGIN_INTEREST_RATE

FG_MARGIN_INTEREST_RATE_DECIMAL

```
FG_MARGIN_JUMP_ALERT_THRESHOLD
```

FG_CURRENT_MONTHLY_DRAW

FG_MONTH6_DRAW_TARGET

FG_MONTH12_DRAW_TARGET

FG_MONTH18_DRAW_TARGET

FG_BUSINESS_INCOME_MONTHLY

FG_BUSINESS_INJECTION_RED

FG_BUSINESS_INJECTION_CRITICAL

Latest example/demo values:

FG_PORTFOLIO_BASELINE_VALUE

FG_MARGIN_BASELINE_BALANCE

FG_DIVIDEND_MONTHLY_INCOME

Core Workflow

1. Read Fidelity Balances CSV

Location:

notebooks/updates/Balances_for_Account_{account_id}.csv

Key Fields to Extract:

csv

Balance,Day change
Total account value,${FG_PORTFOLIO_BASELINE_VALUE_RAW},${FG_PORTFOLIO_DAY_CHANGE_RAW}      → Portfolio Value
Margin buying power,${FG_MARGIN_BUYING_POWER_RAW},${FG_MARGIN_BUYING_POWER_DAY_CHANGE_RAW}
Net debit,${FG_MARGIN_BASELINE_BALANCE_RAW},${FG_MARGIN_DAY_CHANGE_RAW}                 → Margin Balance (abs value)
Margin interest accrued this month,${FG_MARGIN_INTEREST_ACCRUED_THIS_MONTH_RAW},    → Monthly Interest (actual)

Calculations:

Margin Balance: Absolute value of "Net debit" = ${FG_MARGIN_BASELINE_BALANCE}
Interest Rate: Default ${FG_MARGIN_INTEREST_RATE} (Fidelity $1k-$24.9k tier) unless specified
Monthly Interest Cost: Balance × Rate ÷ 12 = ${FG_MARGIN_BASELINE_BALANCE} × ${FG_MARGIN_INTEREST_RATE_DECIMAL} ÷ 12 = ${FG_MARGIN_MONTHLY_INTEREST_COST}

2. Safety Check: Margin Jump Alert

Rule: If new margin balance > previous balance + ${FG_MARGIN_JUMP_ALERT_THRESHOLD}, STOP

Reason: Large draws should be intentional per margin-living strategy

Example:

Previous: ${FG_MARGIN_BASELINE_BALANCE}
Current: ${FG_MARGIN_JUMP_EXAMPLE_CURRENT} (+${FG_MARGIN_JUMP_EXAMPLE_DIFF}) → 🚨 ALERT - Confirm intentional draw

Action:

Alert user immediately
Show diff: "Margin increased by ${FG_MARGIN_JUMP_EXAMPLE_DIFF} - Confirm this was intentional"
Wait for user confirmation before proceeding

3. Add Entry to Margin Dashboard

Insert new row with:

Date: Current date (use
```
date +"%Y-%m-%d"
```
)
Margin Balance: From Balances CSV (Net debit absolute value)
Interest Rate: ${FG_MARGIN_INTEREST_RATE} (or updated rate from CSV if available)
Monthly Interest Cost: Calculate (Balance × Rate ÷ 12)
Notes: Auto-generate based on elapsed time since ${FG_STRATEGY_START_DATE}

Example Entry:

Date: ${FG_MARGIN_EXAMPLE_DATE}
Margin Balance: ${FG_MARGIN_BASELINE_BALANCE}
Interest Rate: ${FG_MARGIN_INTEREST_RATE}
Monthly Interest Cost: ${FG_MARGIN_MONTHLY_INTEREST_COST}
Notes: Month 1 - Building foundation, on track per strategy

Notes Generation Logic:

python

import os
from datetime import datetime

months_elapsed = (current_date - datetime.fromisoformat(os.getenv("FG_STRATEGY_START_DATE"))).days // 30

if months_elapsed < 6:
    note = f"Month {months_elapsed} - Building foundation, on track per strategy"
elif months_elapsed < 12:
    note = f"Month {months_elapsed} - Approaching Month 6 milestone"
elif months_elapsed < 18:
    note = f"Month {months_elapsed} - Approaching break-even milestone"
else:
    note = f"Month {months_elapsed} - Mature strategy, monitor scaling"

4. Update Summary Section

Recalculate Dashboard Metrics:

Current Margin Balance

= Latest entry from Margin Dashboard
Example: ${FG_MARGIN_BASELINE_BALANCE}

Monthly Interest Cost

= Latest calculated cost
Example: ${FG_MARGIN_MONTHLY_INTEREST_COST}/month

Annual Interest Cost

= Monthly Interest Cost × 12
Example: ${FG_MARGIN_MONTHLY_INTEREST_COST} × 12 = ${FG_MARGIN_ANNUAL_INTEREST_COST}/year

Dividend Income (from Dividend Tracker)

= Pull from Dividend Tracker "TOTAL EXPECTED DIVIDENDS"
Example: ${FG_DIVIDEND_MONTHLY_INCOME}/month

Coverage Ratio

= Dividend Income ÷ Monthly Interest Cost
Formula: =IFERROR(Dividends / Interest, 0)
Example: ${FG_DIVIDEND_MONTHLY_INCOME} ÷ ${FG_MARGIN_MONTHLY_INTEREST_COST} = ${FG_DIVIDEND_COVERAGE_RATIO} 🟢

Fix #DIV/0! if margin balance = $0:

Before: =B10 / B11  (causes #DIV/0! when margin = 0)
After: =IFERROR(B10 / B11, 0)  (returns 0 when no margin)

5. Calculate Strategy Metrics

Portfolio-to-Margin Ratio

= Total account value ÷ Margin Balance
Example: ${FG_PORTFOLIO_BASELINE_VALUE} ÷ ${FG_MARGIN_BASELINE_BALANCE} = ${FG_PORTFOLIO_MARGIN_RATIO} 🟢🟢🟢

Safety Thresholds:

🟢 Green: Ratio > 4.0:1 (target - healthy margin usage)
🟡 Yellow: Ratio 3.5-4.0:1 (warning - pause scaling)
🔴 Red: Ratio < 3.0:1 (alert - stop draws, inject business income)
⚫ Critical: Ratio < 2.5:1 (emergency - inject ${FG_BUSINESS_INJECTION_CRITICAL}, consider selling)

Current Draw vs Fixed Expenses

Current monthly draw: ${FG_CURRENT_MONTHLY_DRAW} (fixed expenses only)
Target: Start with ${FG_CURRENT_MONTHLY_DRAW}, scale to ${FG_MONTH6_DRAW_TARGET}, ${FG_MONTH12_DRAW_TARGET}, ${FG_MONTH18_DRAW_TARGET} based on data

6. Scaling Alerts (Time-Based)

Strategy Start Date: ${FG_STRATEGY_START_DATE}

Calculate months elapsed:

python

import os
from datetime import datetime

start = datetime.fromisoformat(os.getenv("FG_STRATEGY_START_DATE"))
current = datetime.now()
months_elapsed = (current - start).days // 30

Month 6 Alert

📊 MONTH 6 MILESTONE CHECK:
✅ Dividends: ${FG_DIVIDEND_MONTHLY_INCOME}/month (need ${FG_MONTH6_DIVIDEND_MINIMUM})
✅ Portfolio-to-Margin Ratio: ${FG_PORTFOLIO_MARGIN_RATIO} (need 4:1+)
✅ Dividend Growth: On track

🎯 RECOMMENDATION: Scale margin draw to ${FG_MONTH6_DRAW_TARGET}/month (add mortgage)
- Current: ${FG_CURRENT_MONTHLY_DRAW} (fixed expenses only)
- New: ${FG_MONTH6_DRAW_TARGET} (fixed + mortgage)
- Safety margin: Excellent

Month 12 Alert

📊 MONTH 12 BREAK-EVEN CHECK:
Expected Dividends: ${FG_MONTH12_DIVIDEND_TARGET}/month (goal: break-even with margin interest)
✅ IF achieved: Consider scaling to ${FG_MONTH12_DRAW_TARGET}/month (add some variable expenses)
⚠️ IF not: Hold at ${FG_MONTH6_DRAW_TARGET}, assess strategy

Month 18 Alert

📊 MONTH 18 MATURE STRATEGY CHECK:
Expected Dividends: ${FG_MONTH18_DIVIDEND_TARGET}/month
Expected Margin: Declining (dividends paying down debt)
✅ IF achieved: Consider scaling to ${FG_MONTH18_DRAW_TARGET}/month (most variable expenses)
⚠️ IF not: Hold current level, reassess timeline

7. Alert Thresholds

Generate alerts based on conditions:

Green (Healthy)

✅ Ratio > 4:1 AND dividends covering interest
Status: On track, continue per strategy

Yellow (Caution)

⚠️ Ratio 3.5-4:1 OR dividend coverage declining
Action: Pause scaling, monitor weekly

Red (Alert)

🚨 Ratio < 3:1 OR dividend cuts detected
Action: STOP draws, inject ${FG_BUSINESS_INJECTION_RED} business income

Critical (Emergency)

⛔ Ratio < 2.5:1 OR margin call risk
Action: STOP draws, inject ${FG_BUSINESS_INJECTION_CRITICAL} business income, consider selling hedge (SQQQ)

Critical Rules

WRITABLE Columns (Margin Dashboard)

✅ Date (Column A)
✅ Margin Balance (Column B)
✅ Interest Rate (Column C)
✅ Monthly Interest Cost (Column D - calculated but writeable)
✅ Notes (Column E)

SACRED Formulas (NEVER TOUCH)

❌ Coverage Ratio (unless adding IFERROR wrapper)
❌ Summary section totals (unless fixing #DIV/0!)

Margin Strategy Philosophy

Core Principle: Confidence-based scaling, not time-based mandates

Decision Framework:

Data-driven: Decisions backed by actual dividend income, not projections
Safety-first: Never scale if ratio drops below 3.5:1
Business income as insurance: Available ${FG_BUSINESS_INCOME_MONTHLY}/month, not primary strategy
Monte Carlo backstop: ${FG_BUSINESS_BACKSTOP_PROBABILITY} of scenarios used business income at some point

Business Income Backstop

Available: ${FG_BUSINESS_INCOME_MONTHLY}/month from business operations

Usage Scenarios:

⛔ Margin call (ratio < 3:1): MUST USE business income immediately
⚠️ Market correction (20-30% drop): OPTIONAL - assess need
🎯 Acceleration (reach FI faster): OPTIONAL - strategic choice

Current Philosophy: Insurance policy only, not active strategy component

Example Calculations

Scenario 1: Month 1 (Current State)

Portfolio Value: ${FG_PORTFOLIO_BASELINE_VALUE}
Margin Balance: ${FG_MARGIN_BASELINE_BALANCE}
Ratio: ${FG_PORTFOLIO_MARGIN_RATIO} 🟢🟢🟢

Monthly Interest: ${FG_MARGIN_MONTHLY_INTEREST_COST}
Dividend Income: ${FG_DIVIDEND_MONTHLY_INCOME}
Coverage: ${FG_DIVIDEND_COVERAGE_RATIO} 🟢

Status: Excellent - building foundation

Scenario 2: Month 6 (Projected)

Portfolio Value: ${FG_MONTH6_PROJECTED_PORTFOLIO} (projected with W2 contributions)
Margin Balance: ${FG_MONTH6_PROJECTED_MARGIN} (scaled to ${FG_MONTH6_DRAW_TARGET}/month draw)
Ratio: ${FG_MONTH6_PROJECTED_RATIO} 🟢

Monthly Interest: ${FG_MONTH6_PROJECTED_MONTHLY_INTEREST}
Dividend Income: ${FG_CURRENT_MONTHLY_DRAW} (projected)
Coverage: ${FG_MONTH6_PROJECTED_COVERAGE} 🟢

Status: Healthy - on track for break-even

Scenario 3: Month 15 (Break-Even)

Portfolio Value: ${FG_MONTH15_PROJECTED_PORTFOLIO}
Margin Balance: ${FG_MONTH15_PROJECTED_MARGIN} (scaled to ${FG_MONTH12_DRAW_TARGET}/month draw)
Ratio: ${FG_MONTH15_PROJECTED_RATIO} 🟢

Monthly Interest: ${FG_MONTH15_PROJECTED_MONTHLY_INTEREST}
Dividend Income: ${FG_MONTH15_PROJECTED_DIVIDEND_INCOME}
Coverage: ${FG_MONTH15_PROJECTED_COVERAGE} 🟢

Status: Break-even achieved, dividends > interest

Google Sheets Integration

Spreadsheet ID: Read from

fin-guru/data/user-profile.yaml

→

google_sheets.portfolio_tracker.spreadsheet_id

Use the mcp__gdrive__sheets tool:

javascript

// STEP 1: Read Spreadsheet ID from user profile
// Load fin-guru/data/user-profile.yaml
// Extract: google_sheets.portfolio_tracker.spreadsheet_id

// STEP 2: Read Margin Dashboard
mcp__gdrive__sheets(
    operation: "spreadsheets.values.get",
    params: {
        spreadsheetId: SPREADSHEET_ID,  // from user-profile.yaml
        range: "Margin Dashboard!A2:E50"
    }
)

// STEP 3: Add new margin entry
mcp__gdrive__sheets(
    operation: "spreadsheets.values.update",
    params: {
        spreadsheetId: SPREADSHEET_ID,  // from user-profile.yaml
        range: "Margin Dashboard!A2:E2",
        valueInputOption: "USER_ENTERED",
        requestBody: {
            values: [[date, balance, rate, monthly_cost, notes]]
        }
    }
)

Agent Permissions

Margin Specialist (Write-enabled):

Can add new entries to Margin Dashboard
Can update margin balance, rate, cost
Can generate scaling alerts
CANNOT modify summary formulas (without formula-protection skill)

Builder (Write-enabled):

Can repair broken formulas (#DIV/0!)
Can update summary section calculations
Can add new metrics

All Other Agents (Read-only):

Market Researcher, Quant Analyst, Strategy Advisor
Can read margin data for analysis
Cannot write to spreadsheet
Must defer to Margin Specialist or Builder

Reference Files

For complete strategy details, see:

Margin Strategy:

fin-guru-private/fin-guru/strategies/active/margin-living-master-strategy.md

Portfolio Strategy:

fin-guru-private/fin-guru/strategies/active/portfolio-master-strategy.md

User Profile:
```
fin-guru/data/user-profile.yaml
```

Spreadsheet Architecture:

fin-guru/data/spreadsheet-architecture.md

Pre-Flight Checklist

Before updating Margin Dashboard:

Fidelity Balances CSV is latest by date
CSV is in
```
notebooks/updates/
```
directory
Margin Dashboard sheet exists in Google Sheets
Previous margin balance known (for jump detection)
Dividend Tracker is up-to-date (for coverage ratio)
Current date retrieved via
```
date
```
command

Example Scenario

Trigger: User downloads new Fidelity balances CSV

Agent workflow:

✅ Read Balances CSV - Portfolio: ${FG_PORTFOLIO_BASELINE_VALUE}, Margin: ${FG_MARGIN_BASELINE_BALANCE}
✅ Safety check - Previous: $0, Current: ${FG_MARGIN_BASELINE_BALANCE} (+${FG_MARGIN_BASELINE_BALANCE} < ${FG_MARGIN_JUMP_ALERT_THRESHOLD} threshold) - PASS
✅ Calculate metrics:
- Monthly interest: ${FG_MARGIN_MONTHLY_INTEREST_COST}
- Portfolio-to-margin ratio: ${FG_PORTFOLIO_MARGIN_RATIO}
- Coverage ratio: ${FG_DIVIDEND_COVERAGE_RATIO} (dividends ÷ interest)
✅ Add entry to Margin Dashboard:
- Date: ${FG_MARGIN_EXAMPLE_DATE}
- Balance: ${FG_MARGIN_BASELINE_BALANCE}
- Rate: ${FG_MARGIN_INTEREST_RATE}
- Cost: ${FG_MARGIN_MONTHLY_INTEREST_COST}
- Notes: "Month 1 - Building foundation, on track"
✅ Update summary section:
- Current balance: ${FG_MARGIN_BASELINE_BALANCE}
- Monthly cost: ${FG_MARGIN_MONTHLY_INTEREST_COST}
- Annual cost: ${FG_MARGIN_ANNUAL_INTEREST_COST}
- Dividend income: ${FG_DIVIDEND_MONTHLY_INCOME}
- Coverage: ${FG_DIVIDEND_COVERAGE_RATIO}
✅ Generate status: "🟢 Excellent health - Ratio ${FG_PORTFOLIO_MARGIN_RATIO}, Coverage ${FG_DIVIDEND_COVERAGE_RATIO}"
✅ LOG: "Updated Margin Dashboard - Month 1, ${FG_MARGIN_BASELINE_BALANCE} balance, ${FG_PORTFOLIO_MARGIN_RATIO} ratio"

Skill Type: Domain (workflow guidance) Enforcement: BLOCK (financial risk critical) Priority: Critical Line Count: < 400 (following 500-line rule) ✅

margin-management

NPX Install

Tags

SKILL.md Content