Agent-Skills.md

Agent Skills: Margin Management

Update Margin Dashboard with Fidelity balance data and calculate margin-living strategy metrics. Monitors margin balance, interest costs, coverage ratios, and scaling thresholds. Triggers safety alerts for large draws and provides time-based scaling recommendations. Use when updating margin, balances, coverage ratio, or margin strategy analysis.

UncategorizedID: aojdevstudio/finance-guru/margin-management

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aojdevstudio/finance-guru
AojdevStudioLicense: NOASSERTION
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pnpm dlx add-skill https://github.com/AojdevStudio/Finance-Guru/tree/HEAD/.claude/skills/margin-management

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.claude/skills/margin-management/SKILL.md

Skill Metadata

Name
margin-management
Description
Update Margin Dashboard with Fidelity balance data and calculate margin-living strategy metrics. Monitors margin balance, interest costs, coverage ratios, and scaling thresholds. Triggers safety alerts for large draws and provides time-based scaling recommendations. Use when updating margin, balances, coverage ratio, or margin strategy analysis.

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:

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:

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:

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:

  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: ${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:

// 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:

  1. ✅ Read Balances CSV - Portfolio: ${FG_PORTFOLIO_BASELINE_VALUE}, Margin: ${FG_MARGIN_BASELINE_BALANCE}
  2. ✅ Safety check - Previous: $0, Current: ${FG_MARGIN_BASELINE_BALANCE} (+${FG_MARGIN_BASELINE_BALANCE} < ${FG_MARGIN_JUMP_ALERT_THRESHOLD} threshold) - PASS
  3. ✅ 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)
  4. ✅ 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"
  5. ✅ 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}
  6. ✅ Generate status: "🟢 Excellent health - Ratio ${FG_PORTFOLIO_MARGIN_RATIO}, Coverage ${FG_DIVIDEND_COVERAGE_RATIO}"
  7. ✅ 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) ✅