Passive income, personal finance and fintech.
2017 was the year I changed my investment strategy and started blogging about it. In earlier years I experienced great volatility due to an extreme apatite for risk, but this was not the case for 2017. I now believe I've found an investment strategy that suits me well, and I'll be sure to follow the same path in 2018.
My portfolio is still in it early phase, and next month will actually be the 1 year anniversary. I'm very exited about that, and certainly looking forward to keeping track on the year-over-year growth of dividends received!
In order to push my year-over-year growth, I've established two financial goals to help me get there. As the Dividend Diplomats wrote about there are Benefits of setting lofty goals, and I surely intend to do so.
As I like to keep thing simple, I've limited my financial goals this year to only two items. So without further ado, here they are:
When I started this blog I wrote about my portfolio expectations. And in my calculations I noted an annual savings rate of $10,000. So why is my goal to invest three times that? Well, the cash flow outlook of 2018 is quite promising. I have some ad-hoc cash coming in during Q2, which I would like to invest in the market. I do not expect to keep this investment rate up for the following years, but for 2018 I believe I can squeeze in an amount around 50% of my current market value. Doing so will also substantially alter the expected terminal value of my portfolio due to the effect of compounding interest.
$30,000 divided by 12 indicate $2,500 each month. But it's look like I will not be able to make any investments this quarter. So from easter or so I should be able to make an investment of about $3,750 each month. Given that I find some good investment opportunities at that time..
2017 ended with $2,819 dividends collected. And I aim to (nearly) double that figure this year. One of the main reason for this is that I started building my portfolio in 2017, and the dividends received the first two quarters should be much higher this year due to some investment made in the last months of 2017. But most importantly it's crucial that I complete goal #1 in order to have a shot at this dividend goal.