margin-management

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:

• Syncing live margin balances from SnapTrade
• 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

Static private assumptions come from .env (see .env.example). Current portfolio facts come from SnapTrade (live) by default, then src/analysis/margin_metrics.py derives ratios/costs at runtime. Do not hardcode personal numbers in this skill. The legacy Fidelity balances CSV is a fallback only (--source csv).

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
• Live facts are not .env values: portfolio value, margin balance, interest cost, dividend income, coverage ratio, and portfolio-to-margin ratio must be read/calculated at runtime.

Core Workflow

1. Read Live Margin Balances (SnapTrade)

Use uv run python -m src.analysis.margin_metrics --pretty to load .env, pull live balances from the enabled+routed SnapTrade account, and emit current JSON metrics. (Add --source csv to fall back to the latest Balances_for_Account_*.csv if SnapTrade is unavailable.)

Source: SnapTrade account in config/snaptrade-accounts.yaml (enabled: true, role set). Requires SNAPTRADE_* keys in .env.

Key JSON fields the tool emits:

• portfolio_value → net account equity (SnapTrade account_equity) → Portfolio Value
• margin_balance → derived margin debt (gross market value − net equity) → Margin Balance
• monthly_interest_cost → Balance × Rate ÷ 12 (the primary interest figure)
• margin_interest_accrued_this_month → null under SnapTrade (not exposed; only present via --source csv)

Calculations:

• Margin Balance: Derived margin debt = {live.margin_balance} (tracks Fidelity "Net debit" within ~0.1%)
• Interest Rate: Default ${FG_MARGIN_INTEREST_RATE} (Fidelity $1k-$24.9k tier) unless specified
• Monthly Interest Cost: Balance × Rate ÷ 12 = {live.margin_balance} × ${FG_MARGIN_INTEREST_RATE_DECIMAL} ÷ 12 = {derived.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: {live.margin_balance}
Current: {example.margin_current} (+{derived.margin_increase}) → 🚨 ALERT - Confirm intentional draw

Action:

• Alert user immediately
• Show diff: "Margin increased by {derived.margin_increase} - 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: {today}
Margin Balance: {live.margin_balance}
Interest Rate: ${FG_MARGIN_INTEREST_RATE}
Monthly Interest Cost: {derived.monthly_interest_cost}
Notes: Month 1 - Building foundation, on track per strategy

Notes Generation Logic:

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: {live.margin_balance}

Monthly Interest Cost

= Latest calculated cost
Example: {derived.monthly_interest_cost}/month

Annual Interest Cost

= Monthly Interest Cost × 12
Example: {derived.monthly_interest_cost} × 12 = {derived.annual_interest_cost}/year

Dividend Income (from Dividend Tracker)

= Pull from Dividend Tracker "TOTAL EXPECTED DIVIDENDS"
Example: {live.monthly_dividend_income}/month

Coverage Ratio

= Dividend Income ÷ Monthly Interest Cost
Formula: =IFERROR(Dividends / Interest, 0)
Example: {live.monthly_dividend_income} ÷ {derived.monthly_interest_cost} = {derived.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: {live.portfolio_value} ÷ {live.margin_balance} = {derived.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:

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: {live.monthly_dividend_income}/month (need ${FG_MONTH6_DIVIDEND_MINIMUM})
✅ Portfolio-to-Margin Ratio: {derived.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:

1. Data-driven: Decisions backed by actual dividend income, not projections
2. Safety-first: Never scale if ratio drops below 3.5:1
3. Business income as insurance: Available ${FG_BUSINESS_INCOME_MONTHLY}/month, not primary strategy
4. 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:

1. ⛔ Margin call (ratio < 3:1): MUST USE business income immediately
2. ⚠️ Market correction (20-30% drop): OPTIONAL - assess need
3. 🎯 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: {live.portfolio_value}
Margin Balance: {live.margin_balance}
Ratio: {derived.portfolio_margin_ratio} 🟢🟢🟢

Monthly Interest: {derived.monthly_interest_cost}
Dividend Income: {live.monthly_dividend_income}
Coverage: {derived.coverage_ratio} 🟢

Status: Excellent - building foundation

Scenario 2: Month 6 (Projected)

Portfolio Value: {projection.month6_portfolio_value} (projected with W2 contributions)
Margin Balance: {projection.month6_margin_balance} (scaled to ${FG_MONTH6_DRAW_TARGET}/month draw)
Ratio: {projection.month6_portfolio_margin_ratio} 🟢

Monthly Interest: {projection.month6_monthly_interest_cost}
Dividend Income: ${FG_CURRENT_MONTHLY_DRAW} (projected)
Coverage: {projection.month6_coverage_ratio} 🟢

Status: Healthy - on track for break-even

Scenario 3: Month 15 (Break-Even)

Portfolio Value: {projection.month15_portfolio_value}
Margin Balance: {projection.month15_margin_balance} (scaled to ${FG_MONTH12_DRAW_TARGET}/month draw)
Ratio: {projection.month15_portfolio_margin_ratio} 🟢

Monthly Interest: {projection.month15_monthly_interest_cost}
Dividend Income: {projection.month15_monthly_dividend_income}
Coverage: {projection.month15_coverage_ratio} 🟢

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:

// 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:

• SnapTrade account is enabled+routed in config/snaptrade-accounts.yaml and SNAPTRADE_* keys are in .env
• 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 asks to sync/refresh margin from SnapTrade

Agent workflow:

1. ✅ Pull live SnapTrade balances - Portfolio: {live.portfolio_value}, Margin: {live.margin_balance}
2. ✅ Safety check - Previous: $0, Current: {live.margin_balance} (+{live.margin_balance} < ${FG_MARGIN_JUMP_ALERT_THRESHOLD} threshold) - PASS
3. ✅ Calculate metrics:
   • Monthly interest: {derived.monthly_interest_cost}
   • Portfolio-to-margin ratio: {derived.portfolio_margin_ratio}
   • Coverage ratio: {derived.coverage_ratio} (dividends ÷ interest)
4. ✅ Add entry to Margin Dashboard:
   • Date: {today}
   • Balance: {live.margin_balance}
   • Rate: ${FG_MARGIN_INTEREST_RATE}
   • Cost: {derived.monthly_interest_cost}
   • Notes: "Month 1 - Building foundation, on track"
5. ✅ Update summary section:
   • Current balance: {live.margin_balance}
   • Monthly cost: {derived.monthly_interest_cost}
   • Annual cost: {derived.annual_interest_cost}
   • Dividend income: {live.monthly_dividend_income}
   • Coverage: {derived.coverage_ratio}
6. ✅ Generate status: "🟢 Excellent health - Ratio {derived.portfolio_margin_ratio}, Coverage {derived.coverage_ratio}"
7. ✅ LOG: "Updated Margin Dashboard - Month 1, {live.margin_balance} balance, {derived.portfolio_margin_ratio} ratio"

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