2014 Goals

29 Dec 2013 14:42

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1. Contribute $6,000 to new DGI purchases
This will be a tough one. I am the sole earner for a family of five and extra money is never easy to come by. I am hoping that my continued search for money saving ideas yields $1500, a combination of tax refund and annual bonus check adds $3000, that just leaves a challenging $1500 to find. If my company decides to eliminate or drastically reduce the bonus I may have to have discussions with my wife about getting a full or part-time job (she has not worked since 2001). My wife going back to work was always in the cards when my oldest starts college but this may just accelerate things by two years.
2. Re-invest $2,000 into DGI purchases
This is more of a discipline goal than anything else. For 2014 I should be on pace for $2000 in dividends so I just need to not let things sit idle.
3. Increase forward DGI yield by 20%
This is really a combination of goals 1 & 2 as well as counting on a portfolio dividend growth rate of 7%. Sounds easy but at least 2 of my investments are for income only and provide no growth.
4. Increase 401K balance by a minimum 10%
To achieve this I need to maintain my existing 401K contribution rate and I’ll need at least a 4% growth of my existing 401K balance.
5. Increase IRA balance by 5%
I have no plans to contribute and money to my IRA so this will need to be accomplished through price appreciation
6. Have 10% cash reserves in IRA/401K
With the run-up in the stock market in 2012 & 2013 my cash reserves have fallen to a woeful 4% allocation. To maintain my risk reduction, things need to change. My plan is to direct my 401K contributions to cash and any paid dividend/capital gains by existing mutual fund holdings will also be directed to cash. I am hoping that by this time next year I will hit my cash allocation goal.

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