Goals

The End Goal:
The end goal is to become financially independent. This allows me to chose whether I want to work or not, as well as what I want to work on whether I get paid a lot or a little.

The Method:
I am looking to provide myself with different streams of passive or semi-passive income. For now that stream of passive income is mostly coming from dividend paying stocks. And since I do not need the dividends at this time I reinvest them, which slowly grows my ownership and helps my compounding snowball of dividends. Eventually I may diversify into real estate investments or find alternative streams of income.

The Progress:
2017 goal:
- Read 4 books on investing.
- Get $$ from side hustle.
- Get forward expected annual dividend up to $10,000, $12,000, $14,000 or more
- Collect $12,500 or more in dividends this year.
- Aim for contribution of around $3500/month after taxes to individual account.
- Aim for savings rate of 65% or more.
- Max Roth, max 401k.

2016 goal:
- Read 4 books on investing.
- Get $$ from side hustle. Earned around $12,500 of side income.
- Get forward expected annual dividend up to $8,200, $10,500 or more Forward expected is $11,608.13
- Collect $9,500 or more in dividends this year. Collected $9,883.89
- Aim for contribution of around $3500/month after taxes to individual account. Fresh contribution (no transfers) was about $3,880 a month on avg.
- Aim for savings rate of 60% or more. Got a savingrate of around 67% on average.
- Max Roth, max 401k, max HSA.
- Open solo 401k or sep ira? Failed, I did not start a side business yet.

2015 goal:
- Read 4 books on investing.
- Get forward expected annual dividend up to $6,800, $7,800, $9,000 or more Forward expected is $8,761.19
- Collect $8000 or more in dividends this year. Collected $7,873.45
- Aim for contribution of around $3500/month after taxes to individual account. Fresh contribution (no transfers) was about $3,250 a month on avg.
- Aim for savings rate of 60% or more. Got a savingrate of around 61%.
- Max Roth, max 401k, max HSA.

2014 goal:
- Read 3 books on investing.
- Expand investment tracking over all accounts and build future projections.
- Start tracking income, expenses, cashflow, savings rate and net worth.
- Aim for savings rate of 50% or more. Got a savingrate of around 63% on avg.
- Get rid off remaining managed investment account and transfer to self-directed account.
- Aim for contribution of around $3000/month after taxes to individual account. Fresh contribution (no transfers) was about $3,500-$4,000 a month on avg.
- Get forward expected annual dividend up to $5500 or more Forward expected is $7,617.
- Collect $4000 or more in dividends this year. Collected $4,777.
- Max Roth, max 401k.

2013 goal:
- Open an individual investment account (taxable).
- Take Coursera course on Introduction to Finance.
- Read 2 books on investing.
- learn more about dividend growth investing.
- learn more about etf investing (Boggleheads, Vanguard, lazy portfolio,...).
- Start tracking investments, dividends.
- collect some dividends, make an investment plan.
- diversify brokers and investment accounts.
- Max Roth IRA, max 401k.

2012 goal:
- Get started with investing.
- Open a Roth IRA
- Contribute the maximum to Roth IRA
- Start 401k
- Contribute to company match to 401k
- Learn more about investing.
- Try papertrading
- Try paper-day-trading

2 comments:

  1. Looking through your site you seem to be very goal focus (FI). I am working an idea "Purposeful Investing" aimed to help people get clarity in their investing by connecting investment to goals. I find many people don't invest as they get intimidated by financial jargon. Love to get you input.

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    Replies
    1. Goals are crucial to success, this applies to all aspects of life.
      How else are you going to hold yourself accountable? How else are you going to track your progress? How else are you going to keep up your motivation over a long period without the positive feedback that achieving a (smaller) goal provides?

      I found the book 'your money or your life' to be quite approachable without too much financial jargon. That book really drives home the idea of what the true cost of something is and what the equivalent invested asset is to sustain a liability in perpetuity.
      Also sites like investopedia make it easier with short tutorial videos explaining some of that jargon.

      In regards to the intimidation I tend to tell people that nobody is born with that knowledge. We all have to learn it and you can not expect to learn it overnight, it takes time. So give yourself at least a few months to start learning and understand that this is a process that will take years. The market will still be there tomorrow, so there really is no need to rush.

      And finally I also convey that investing does not need to be super complex. It is true that there is a lot of knowledge out there, but it is more quantity over complexity.

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