Follow the dividend investment decisions of a person who has no background in financial investment and wishes to take control of their financial future to retire from their full-time job at 60.

September Monthly Income - 30 Sep 2019 21:57

Tags: monthly_income

clocking_in.png

After 32 years of clocking in and out of work and religiously saving 10% annually every year, in good times and bad, I have decided to share my monthly dividend income to show what regular saving and investing can accomplish.

I couldn’t wait for this month’s income report as it represents a full year since I started tracking my monthly income and I finally get to report a year over year comparison! With that said, this is the start of all new metric charts and I hope folks like the new format.

For the month of September I made $2,690; an increase of 19.4% versus this time last year. I target a growth rate of 12.5% to meet my FI goal and I was extremely pleased with how much I exceed my target.

For the month I made no individual stock purchases in any of my accounts but I have been making regular investments via M1 Finance. Tomorrow I’ll make my monthly Roth IRA contribution of $540 that will bring the cash balance to above $1K and anticipate a REIT buy next month for my Roth,

329_1.png329_2.png

In my M1 Finance account I added $480 in regular contributions plus a one-time $650 deposit from a surprise bonus I received at work for a total investment of $1130. All of my sector sub-pies showed positive overall gains for the month but those gains come at the expense of portfolio dividend yield as the yield dropped from 3.5% to 3.35%. For the month my M1 account made 70 cents in dividends and more than I expected for just being 2 months into the account. I also provided a link to my M1 Pie for those interested in seeing all of the individual holdings.
https://m1.finance/NCB--FZCZ

M1_329_1.png
M1_329_3.png
M1_329_2.png

My birthday is coming up in two weeks leaving exactly 2 years left on my age 53 goal. I improved my progress on this goal by 0.4% It’s a slow slog but inching forward.

age53_329.png

Progress on my last goal of saving an additional $2,000 of emergency cash improved as I put an additional $500 away bringing my total up to $1150. - Comments: 2

Weekly Portfolio Summary - 28 Sep 2019 11:11

Tags:

Markets closed Friday down a bit but I have to say I was surprised. With all of the emotional political turmoil of a proposed Trump impeachment, trade negotiations, proposed de-listing of Chinese stocks from US markets, and so on I thought markets would have reacted more negatively. My best guess is investors are becoming more callous to emotional headlines. Really thought there would be an opportunity to buy a stock on weakness but guess I'll wait and see till next week.

Good news for the week, I received a small dividend increase from Artesian Resources. I don't expect large increases from this water company but I do enjoy the diversity and security it adds to my portfolio.

I noticed Rockstar Finance blog feeds are no longer working so I've been getting a lot less notifications from fellow blogger posts. Not sure what is going on but the Rockstar Finance site is dying a slow and humiliating death. If anyone knows of a site the collects a lot of investor blog feeds let me know.

Portfolio Activity

weekly_328.png

Portfolio News - (In Case You Missed These Headlines)

AbbVie (ABBV)

Air Products (APD)

Artesian Resources (ARTNA)

Cummins (CMI)

Camden Property Trust (CPT)

Iron Mountain (IRM)

Johnson & Johnson (JNJ)

Kraft-Heinz (KHC)

Prospect Capital (PSEC)

Qualcomm (QCOM)

Ryder System (R)

Sabra Health Care REIT (SBRA)

United Parcel Service (UPS)

VEREIT (VER)

Interesting Blog Posts or Articles

Blog Posts

Articles

Weekly Portfolio Summary - 21 Sep 2019 11:10

Tags:

Microsoft dropped some good news this week with an 11% dividend increase which add $22 to my forward annual income. WPC also threw a small raise my way, nothing to brag about but still positive towards my forward annual income.

Even with this raise, WPC continues to trade with a dividend yield below 5%. Being a REIT with a low yield and slow dividend growth does not motivate me to increase my position. There are just too many non-REIT dividend growth plays with yields near or above 4% and dividend growth rates in the 5-6% range that offer better long term opportunities for income growth and better tax treatment via qualified dividends versus ordinary dividends in my taxable account.

Portfolio Activity

weekly_327.png

Portfolio News - (In Case You Missed These Headlines)

Avangrid (AGR)

Preferred Apartment Communities (APTS)

General Mills (GIS)

Hospitality Properties Trust (HPT)

Iron Mountain (IRM)

Johnson & Johnson (JNJ)

Merck (MRK)

Microsoft (MSFT)

Omega Healthcare Investors (OHI)

Qualcomm (QCOM)

Ryder System (R)

United Parcel Service (UPS)

W.P. Carey (WPC)

Weyerhaeuser (WY)

Interesting Blog Posts or Articles

Blog Posts

Articles

Weekly Portfolio Summary - 14 Sep 2019 10:28

Tags:

Fairly quite this week with Markets closing the week on the upside and no buys or sells on my end. As boring as this sounds the dividends continue to roll in and get reinvested creating more cash flow.

Portfolio Activity

weekly_326.png

Portfolio News - (In Case You Missed These Headlines)

Air Products (APD)

Brookfield Renewable Partners (BEP)

Cummins (CMI)

Hospitality Properties Trust (HPT)

Iron Mountain (IRM)

Johnson & Johnson (JNJ)

Kraft Heinz (KHC)

Omega Healthcare Investors (OHI)

Ryder System (R)

Sabra Health Care (SBRA)

T. Rowe Price (TROW)

United Parcel Service (UPS)

VEREIT (VER)

Walgreens Boots Alliance (WBA)

W.P. Carey (WPC)

Interesting Blog Posts or Articles

Blog Posts

Articles

Weekly Portfolio Summary - 07 Sep 2019 12:20

Tags:

Had a surprise this week when I received an unexpected $1500 bonus in my paycheck. Being the good saver I am I directed $650 into my new M1 Finance account and $350 towards my cash savings goal. The remaining $500 I’m setting aside as I need a new car and this will help with the down payment.

Portfolio Activity

weekly_325.png

Portfolio News - (In Case You Missed These Headlines)

Iron Mountain (IRM)

Kraft Heinz (KHC)

Merck (MRK)

Prudential Financial (PRU)

Qualcomm (QCOM)

United Parcel Service (UPS)

Interesting Blog Posts or Articles

Blog Posts

Articles

2 New Fun Calculators - 03 Sep 2019 22:46

Tags:

I was tipped off to check out the blog Engaging Data. The blog author (Chris) works in the wonderful world of statistical data analysis and modeling. A a side hobby to keep his skills updated and fresh he spends time publishing various data analysis and creating models to understand and learn about the world. Pretty cool stuff but in particular I want to point out two useful models I found under his “Financial” category called; “Rich, Broke or Dead – Early retirement and longevity” and “Early retirement calculator – When can I retire?

Rich, Broke or Dead

Personally my favorite financial tool website is Portfolio Visualizer where you can back test portfolios or run a Monte Carlo Simulation. The “Rich, Broke or Dead” tool performs a similar function as a Monte Carlo simulation but adds in another factor that takes into account the potential of your death.

I bump into quite a few folks (age 50 and above) who are always worrying about outliving their money to the ages of 90 or 95 so much that it stresses them out or they are over-saving and not enjoying life. This is a great visual aid to help explain the odds of them even living that long and when I entered my numbers as a male there was a 95% chance I would be dead at age 95 and for my wife her odds were slightly better with a 90% chance of death.

You can also use this tool at the other end of the spectrum for those retiring super early like at the age of 40. If we pick a 50% death rate and I change my retirement starting age to 40 the results show I will be 80 when I hit the 50/50 odds of death and as a kicker I had a 27% chance of being broke. The story here is your funds starting at age 40 need to last at a minimum 40 years (more likely 45 years) so you need to plan well to last that long.

RBD_Chart.png

When Can I Retire

This one is a really nifty tool. You simply plug in your after tax income, current expenses and what you believe will be your annual retirement expenses and it will spit out what your potential savings rate is and when you can potentially retire. But how reliable is this?

One thing I love to do is analyze, plan and create a strategy to achieve a goal. In my case, I determined to successfully retire while having enough funds to mitigate market downturns & inflation I would need a passive income equal to 115% of my expenses and an emergency cash fund equal to 9 months of expenses. Based on my current investments and savings rate I estimated that I can achieve this by age 60. This target age has been a goal on my blog since 2013 so lets see how my guesstimate compares…

After entering my data it returns a result that says I can retire in 8.8 years or 2 ½ months shy of my 60th birthday. Dang that is pretty close to my calculations and if this was a game of horseshoes I would have scored a point!

FIRE_Chart.png

So there you have two new fun calculators to play with, give’em whirl and let me know what you think. - Comments: 0


Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License