Archive for the ‘Passive Income Project’ Category

Passive Income Update – February 2014

By: ispeculatornew | Date posted: 02.26.2014 (3:00 am)

Ahh February is almost over and I’m hopeful that I’ll have survived one more winter:) I think winter is always a reminder that I hope I’ll be able to enjoy my retirement, travel, get away from the cold weather, etc.

Do you have long term financial objectives? Are you tracking those on a monthly or yearly basis?

The reason I post this monthly update is both to keep myself accountable but also have a more public discussion about my plans and how I can become financially independent as quickly as possible.

With both sides of the US government acting like complete fools these days, more than ever I feel like being financially independent is critical, don’t you? So here is how I went about this whole process:

For example, if my base salary is currently 100K, my objective is to make 100K of passive income on an annual basis. This could be done through a variety of methods which I will be exploring of course. A few people tried to figure out how much capital I have by looking at the USDP size. The main issue is that the USDP is only part of my dividend income. I also get income from my ETF holdings, etc.

My primary objective remains to generate 100K in passive income on an annual basis as soon as possible, ideally from a few different sources.

February Updates

-The latest update of the USDP was published last week

How Much Do I Really Need?

I am aiming for an income of 100K or so, before taxes as a first goal. To be clear, I feel like I need significantly less than that. Why? I’ve described how I am living off of significantly less right now (I’m paying taxes, paying my house, saving, etc). I also have the option, as discussed of retiring in a foreign location. I discussed the idea of needing 100K in yearly income here.

Overall, I feel like aiming for the same level of income as I am currently making is very very reasonable and I could easily live with less but why aim lower if I’m confident I can reach that 100K?:)

Why Am I Doing This?

I’m a strong believer in working with clear objectives but also holding myself accountable so writing about these objectives will without any doubt help me reach financial independence more quickly.

Current Passive Income Flows:

7.67% – Dividend/Investing Portfolio: Things continue to go well with my my portfolio and despite a rocky market, I actually did very well and while the yield is still fairly similar at 3.25%, the value of my investment did increase.

8.08% – Private Investment In My Online Company: Not a big change but I did slightly increase what I’m withdrawing from the company on a monthly basis so this jumped a bit.

Total: 15.75%

It’s not spectacular by any means yet. That being said, I am 32 years old and do have a decent base (I could live with less easily).. I will continue to work on getting that total as close as I can do 100%:)

Passive Income Ideas

0% – Real Estate: I have started writing about adding real estate to my income flows. One aspect that I love about Real Estate Investing is how much of an inflation hedge it will represent for my portfolio. So I started looking into some aspects such as investing into residential or commercial real estate as well as the question of becoming (or not) a landlord. I’ve also looked into the possibility of renting property that I’d own though AirBnB (and an updated post here) and a few other questions I had been wondering about.

0% – P2P Lending – I started exploring the idea and wrote my first post about it here🙂

0% – Annuity – No intention of buying an annuity for the time being

0% – Farming – I know it sounds crazy but I’ve started looking into it as you can see from my post a couple of weeks ago

0% – Other ideas – I could end up starting other businesses or projects will I’ll certainly keep you posted about.

What I Am Not/Will Not Include

Pensions: I do know that the government will be paying me a sum of money once I retire. However, given how poor government finances look like these days, I personally think it’s crazy to count on the government actually fulfilling its promises. It won’t happen. Yes, there will be money, but not anywhere what is currently being promised. Whatever I do end up getting will be a nice surprise.

I feel like I am being extremely conservative here. By not including my government pension and also not including the fact that lower revenues will mean less taxes to be paid, I’m overestimating the amount of passive income that is truly needed. That is more than fine by me. I’d also like to think that my house will be paid by then making my level of spending lower all things being equal.

My Long Term Passive Income Objectives

January 2014: $12,000/year
January 2018: $25,000/year
January 2023: $50,000/year
January 2030: $100,000/year

It’s easy to look at a chart like this and think that I’m still so far away from my goal but I’m getting there, step by step.

Do you have any questions or comments? I’d love to hear any ideas or how you’ve been managing on your end as well!

 

Ultimate Sustainable Dividend Portfolio – February 2014 Update – Tough Month

By: ispeculatornew | Date posted: 02.19.2014 (3:00 am)

passiveincomeIn September 2011, I did some in-depth research to find long term sustainable dividend stocks and have been doing updates on this Ultimate Sustainable dividend portfolio since then in the attempt to show how well such a portfolio can perform over the long term. I would personally say that things have been going very well and will certainly continue to evolve. I do have a few more things planned which I will discuss in the near future.

The USDP is obviously a critical part of my now very public quest to replace my job income with passive income. you can see my most recent update here.

Things continue to go very well for the USDP which I’m thrilled to see. The past few weeks were not the most successful but overall the performance remains very solid. I will be publishing more analysis of the stocks from the portfolio in the free newsletter. If ever you would like to receive those types of updates, please join, it’s free:

Keep in mind that this portfolio was built by selecting 20 stocks out of thousands. The goal is not to pick the best dividend stocks but rather to pick a diversified, high quality portfolio that will keep dividends increasing over time.

Here are the holdings as of last night to start off:

TickerNameSharesFeb 18 2014 PriceFeb 18 2014 Values
OMCOmnicom Group Inc30$76.16$2,284.80
MSFTMicrosoft Corp73$37.42$2,731.66
JCIJohnson Controls Inc40$49.27$1,970.80
PEPPepsiCo Inc/NC28$78.18$2,189.04
ETNEaton Corp31$72.47$2,246.57
DOVDover Corp24$87.10$2,090.40
ITWIllinois Tool Works Inc28$79.92$2,237.76
XLNXXilinx Inc38$50.32$1,911.97
SJMJM Smucker Co/The20$95.31$1,906.20
BLKBlackRock Inc11$305.96$3,365.56
TROWT Rowe Price Group Inc29$80.66$2,339.14
OXYOccidental Petroleum Corp22$96.28$2,118.16
COPConocoPhillips26$65.37$1,699.62
XOMExxon Mobil Corp20$94.07$1,881.40
ADIAnalog Devices Inc44$51.23$2,254.12
HASHasbro Inc31$52.96$1,641.76
MATMattel Inc44$35.47$1,560.68
INTCIntel Corp54$24.76$1,337.04
AFLAflac30$63.03$1,890.90
BAXBaxter International24$69.29$1,662.96
IVZInvesco Ltd68$34.14$2,321.52
VWOVanguard FTSE Emerging Markets43$38.77$1,667.11
BNDVanguard Total Bond Market24$81.17$1,948.08
Cash$801.41
USDP$48,058.66
SPX14.72205005$3,310.89$48,743.06

Dividends Received

This month, the USDP will end up generating $112.53 which is  about 2.50% more than last year. It’s small progress but every month that provides more income than the previous year is good news.  Take a look at the progress:

income

Ultimate Sustainable Dividend Portfolio News

Xilinx (XLNX) Inc Dividend increase from $0.25 to $0.29, a 16% increase
BlackRock Inc (BLK) Dividend increase from $1.68 to $1.93, a 14.9% increase
Occidental Petroleum Corp (OXY) Dividend increase from $0.64 to $0.72, a 12.5% increase
Hasbro Inc (HAS) Dividend increase from $0.40 to $0.43, a 7.5% increase
Mattel Inc (MAT) Dividend increase from $0.36 to $0.38, a 5.6% increase

Returns

Wow, it was not a good month… that much seems obvious. There were a few bad performances but by far the biggest miss was Mattel (MAT). Who knew Barbie dolls were going out of style?:( Joking aside, the company reported some disappointing numbers….I’ll be looking into if I can remain invested in this stock in the next few days and might be trading out of it next month.

MAT

 

This is very disappointing because even though I pay a lot of attention to the income, generating a solid total return is as critical so I will need to review what happened. Bad months will happen and that’s fine but I do still need to review the performance and adjust if required.

usdp1

Trades

This time around, I am not entering any new trades apart from re-investing the dividends that were received. I do expect to trade some next month as I will review the entire USDP portfolio and I’m getting a feeling that there will be at least 1 or 2 changes.

Passive Income Update – January 2014

By: ispeculatornew | Date posted: 01.23.2014 (3:00 am)

retire_22The start of a new year is always a great time to think about the longer term stuff and while I know my retirement is several decades away, I’m hoping to become financially independent much earlier than that. It’s also encouraging to reach a new year as I get my once-a-year performance bonus in December which always gives a boost to these accounts.

Do you have long term financial objectives? Are you tracking those on a monthly or yearly basis?

The reason I post this monthly update is both to keep myself accountable but also have a more public discussion about my plans and how I can become financially independent as quickly as possible.

With both sides of the US government acting like complete fools these days, more than ever I feel like being financially independent is critical, don’t you? So here is how I went about this whole process:

For example, if my base salary is currently 100K, my objective is to make 100K of passive income on an annual basis. This could be done through a variety of methods which I will be exploring of course. A few people tried to figure out how much capital I have by looking at the USDP size. The main issue is that the USDP is only part of my dividend income. I also get income from my ETF holdings, etc.

My primary objective remains to generate 100K in passive income on an annual basis as soon as possible, ideally from a few different sources.

January Updates

-The latest update of the USDP was published last week
-I did end up getting a good bonus at year-end which mostly went towards my investing portfolio so there is a nice increase in the passive income of that portfolio.

How Much Do I Really Need?

I am aiming for an income of 100K or so, before taxes as a first goal. To be clear, I feel like I need significantly less than that. Why? I’ve described how I am living off of significantly less right now (I’m paying taxes, paying my house, saving, etc). I also have the option, as discussed of retiring in a foreign location. I discussed the idea of needing 100K in yearly income here.

Overall, I feel like aiming for the same level of income as I am currently making is very very reasonable and I could easily live with less but why aim lower if I’m confident I can reach that 100K?:)

Why Am I Doing This?

pas1

I’m a strong believer in working with clear objectives but also holding myself accountable so writing about these objectives will without any doubt help me reach financial independence more quickly.

Current Passive Income Flows:

7.39% – Dividend/Investing Portfolio: I am currently generating a dividend yield of about 3.30%. This portfolio will be increasing over time. I use a bucket system which I will be writing more about but the main retirement components are a long term dividend portfolio (see the Ultimate Sustainable Dividend Portfolio) and an ETF portfolio (see BuildYourETFPortfolio for more details on how I build mine). I saw a slight increase here thanks to markets rising and a similar yield.

7.48% – Private Investment In My Online Company: I have discussed how my web company has been the best investment of my life so far. I’m happy to say that I was able to slightly increase my monthly income from the company even though it wasn’t expected. I certainly hope that will keep happening.

Total: 14.87%

It’s not spectacular by any means yet. That being said, I am 32 years old and do have a decent base (I could live with less easily).. I will continue to work on getting that total as close as I can do 100%:)

pas2

Passive Income Ideas

0% – Real Estate: I have started writing about adding real estate to my income flows. One aspect that I love about Real Estate Investing is how much of an inflation hedge it will represent for my portfolio. So I started looking into some aspects such as investing into residential or commercial real estate as well as the question of becoming (or not) a landlord. I’ve also looked into the possibility of renting property that I’d own though AirBnB (and an updated post here) and a few other questions I had been wondering about.

0% – P2P Lending – I started exploring the idea and wrote my first post about it here🙂

0% – Annuity – No intention of buying an annuity for the time being

0% – Farming – I know it sounds crazy but I’ve started looking into it as you can see from my post a couple of weeks ago

0% – Other ideas – I could end up starting other businesses or projects will I’ll certainly keep you posted about.

What I Am Not/Will Not Include

Pensions: I do know that the government will be paying me a sum of money once I retire. However, given how poor government finances look like these days, I personally think it’s crazy to count on the government actually fulfilling its promises. It won’t happen. Yes, there will be money, but not anywhere what is currently being promised. Whatever I do end up getting will be a nice surprise.

I feel like I am being extremely conservative here. By not including my government pension and also not including the fact that lower revenues will mean less taxes to be paid, I’m overestimating the amount of passive income that is truly needed. That is more than fine by me. I’d also like to think that my house will be paid by then making my level of spending lower all things being equal.

My Long Term Passive Income Objectives

January 2014: $12,000/year
January 2018: $25,000/year
January 2023: $50,000/year
January 2030: $100,000/year

pas3

Ahhh! So that big jump in passive income doesn’t quite seem as impressive on this chart. I guess that is to be expected as it is such a long term project that the one key is long term consistency rather than having a step back or a big jump. I’ll keep working at it:)

Do you have any questions or comments? I’d love to hear any ideas or how you’ve been managing on your end as well!

 

Ultimate Sustainable Dividend Portfolio – January 2014 Update

By: ispeculatornew | Date posted: 01.15.2014 (3:00 am)

passiveincomeIn September 2011, I did some in-depth research to find long term sustainable dividend stocks and have been doing updates on this Ultimate Sustainable dividend portfolio since then in the attempt to show how well such a portfolio can perform over the long term. I would personally say that things have been going very well and will certainly continue to evolve. I do have a few more things planned which I will discuss in the near future.

The USDP is obviously a critical part of my now very public quest to replace my job income with passive income. you can see my most recent update here.

Things continue to go very well for the USDP which I’m thrilled to see. The months of December and January are always slow in terms of news but as long as things continue to go well, I can’t complain. If ever you would like to receive those types of updates, please join, it’s free:

Keep in mind that this portfolio was built by selecting 20 stocks out of thousands. The goal is not to pick the best dividend stocks but rather to pick a diversified, high quality portfolio that will keep dividends increasing over time.

Here are the holdings as of last night to start off:

TickerNameSharesJan 14 2014 PriceJan 14 2014 Values
OMCOmnicom Group Inc29$73.91$2,217.30
MSFTMicrosoft Corp71$35.78$2,576.16
JCIJohnson Controls Inc39$51.92$2,076.80
PEPPepsiCo Inc/NC27$82.37$2,306.36
ETNEaton Corp31$75.70$2,346.70
DOVDover Corp23$95.42$2,290.08
ITWIllinois Tool Works Inc27$82.23$2,302.44
XLNXXilinx Inc37$46.05$1,703.85
SJMJM Smucker Co/The19$99.34$1,887.46
BLKBlackRock Inc10$310.52$3,415.72
TROWT Rowe Price Group Inc28$83.19$2,412.51
OXYOccidental Petroleum Corp21$92.31$2,030.82
COPConocoPhillips25$68.32$1,708
XOMExxon Mobil Corp19$99.12$1,883.28
ADIAnalog Devices Inc43$49.71$2,187.24
HASHasbro Inc31$52.31$1,621.61
MATMattel Inc42$44.40$1,909.20
INTCIntel Corp53$26.51$1,405.03
AFLAflac28$64.70$1,876.30
BAXBaxter International23$69.66$1,671.84
IVZInvesco Ltd67$35.22$2,359.74
VWOVanguard FTSE Emerging Markets43$39.81$1,711.83
BNDVanguard Total Bond Market21$80.57$1,691.97
Cash$75.44
USDP$47,868.63
SPX13.80378067$3,300.53$47,593.77

Dividends Received

January is always a slow month in terms of dividends and this one is no exception but I did fare better than last year when the portfolio had generated $0…! haha! This time it generated $11… enough for a small McDonald’s meal right?:)  Take a look at the progress:

usdp2

Ultimate Sustainable Dividend Portfolio News

Not much to report on this front unfortunately as it remains a bit slow in this start of the year!

Returns

While the USDP remains ahead of the S&P500, I did give up some ground this month unfortunately…!

usdp1

Trades

A bit more happened this month as I actually bought a bit more of ETF’s exposure, buying 8 shares of BND (Vanguard Bonds) and VWO (Emerging Markets) which now represents about 7% of the portfolio.

Ultimate Sustainable Dividend Portfolio – December 2013 Update

By: ispeculatornew | Date posted: 12.18.2013 (3:00 am)

investingIn September 2011, I did some in-depth research to find long term sustainable dividend stocks and have been doing updates on this Ultimate Sustainable dividend portfolio since then in the attempt to show how well such a portfolio can perform over the long term. I would personally say that things have been going very well and will certainly continue to evolve. I do have a few more things planned which I will discuss in the near future.

This month turned out very well as the USDP outperformed the S&P500 significantly;)

The USDP is obviously a critical part of my now very public quest to replace my job income with passive income. you can see my most recent update here.

Things continue to go very well for the USDP which I’m thrilled to see. Very exciting stuff and I’m thrilled with how things have gone so far. I have done a couple of trades and continue to work on optimizing it, if ever you would like to receive those types of updates, please join, it’s free:

Keep in mind that this portfolio was built by selecting 20 stocks out of thousands. The goal is not to pick the best dividend stocks but rather to pick a diversified, high quality portfolio that will keep dividends increasing over time.

Here are the holdings as of last night to start off:

TickerNameSharesDec 17 2013 PriceDec 17 2013 Values
OMCOmnicom Group Inc29$69.84$2,025.36
MSFTMicrosoft Corp71$36.52$2,629.44
JCIJohnson Controls Inc39$51.32$2,052.80
PEPPepsiCo Inc/NC27$80.46$2,252.88
ETNEaton Corp31$73.45$2,276.95
DOVDover Corp23$91.21$2,189.04
ITWIllinois Tool Works Inc27$79.96$2,158.92
XLNXXilinx Inc37$44.27$1,637.81
SJMJM Smucker Co/The19$101.10$1,920.90
BLKBlackRock Inc10$302.63$3,328.93
TROWT Rowe Price Group Inc28$79.81$2,314.49
OXYOccidental Petroleum Corp21$90.21$1,984.62
COPConocoPhillips25$69.06$1,726.50
XOMExxon Mobil Corp19$96.75$1,838.25
ADIAnalog Devices Inc43$48.94$2,153.36
HASHasbro Inc31$51.53$1,597.43
MATMattel Inc42$44.70$1,922.10
INTCIntel Corp53$24.66$1,306.72
AFLAflac28$66.01$1,914.29
BAXBaxter International23$65.55$1,573.20
IVZInvesco Ltd67$34.47$2,309.49
VWOVanguard FTSE Emerging Markets28$40.27$1,127.56
BNDVanguard Total Bond Market13$80.61$1,128.54
Cash$559.12
USDP$45,928.69
SPX13.80378067$3,192.29$45,065.71

Dividends Received

November turned out very well as you can see as the portfolio generated $111, which is 40% more than the same month last year.  December is slightly lower, probably because 1-2 stocks moved their dividend away from Decembre. Take a look at the progress:

usdp201312

Ultimate Sustainable Dividend Portfolio News

Nothing to report in terms of increased dividend…I guess everyone is focused on other stuff with Christmas around the corner:)

Returns

It was certainly a good month for the USDP although the portfolio actually did return less than the S&P500 in a tough market. It’s not much of a concern but worth nothing.

usdp201312-2

Trades

Not much to report here. Because I reinvested all dividends and needed to add some cash to buy “complete” shares so there wasn’t much cash left at the end of the month actually:)

Passive Income Update – November 2013

By: ispeculatornew | Date posted: 11.20.2013 (3:00 am)

retire_22The reason I post this monthly update is both to keep myself accountable but also have a more public discussion about my plans and how I can become financially independent as quickly as possible.

With both sides of the US government acting like complete fools these days, more than ever I feel like being financially independent is critical, don’t you? So here is how I went about this whole process:

For example, if my base salary is currently 100K, my objective is to make 100K of passive income on an annual basis. This could be done through a variety of methods which I will be exploring of course. A few people tried to figure out how much capital I have by looking at the USDP size. The main issue is that the USDP is only part of my dividend income. I also get income from my ETF holdings, etc.

My primary objective remains to generate 100K in passive income on an annual basis as soon as possible, ideally from a few different sources.

November Updates

-The latest update of the USDP was published 2 days ago
-I posted an updated post about the idea of buying real estate to rent it out on sites like AirBnB

How Much Do I Really Need?

I am aiming for an income of 100K or so, before taxes as a first goal. To be clear, I feel like I need significantly less than that. Why? I’ve described how I am living off of significantly less right now (I’m paying taxes, paying my house, saving, etc). I also have the option, as discussed of retiring in a foreign location. I discussed the idea of needing 100K in yearly income here.

Overall, I feel like aiming for the same level of income as I am currently making is very very reasonable and I could easily live with less but why aim lower if I’m confident I can reach that 100K?:)

Why Am I Doing This?

pas

I’m a strong believer in working with clear objectives but also holding myself accountable so writing about these objectives will without any doubt help me reach financial independence more quickly.

Current Passive Income Flows:

5.85% – Dividend/Investing Portfolio: I am currently generating a dividend yield of about 3.40%. This portfolio will be increasing over time. I use a bucket system which I will be writing more about but the main retirement components are a long term dividend portfolio (see the Ultimate Sustainable Dividend Portfolio) and an ETF portfolio (see BuildYourETFPortfolio for more details on how I build mine). I saw a slight increase here thanks to markets rising and a similar yield.

7.48% – Private Investment In My Online Company: I have discussed how my web company has been the best investment of my life so far. I’m happy to say that I was able to slightly increase my monthly income from the company even though it wasn’t expected. I certainly hope that will keep happening.

Total: 13.32%

It’s not spectacular by any means yet. That being said, I am 32 years old and do have a decent base (I could live with less easily).. I will continue to work on getting that total as close as I can do 100%:)

pas2

Passive Income Ideas

0% – Real Estate: I have started writing about adding real estate to my income flows. One aspect that I love about Real Estate Investing is how much of an inflation hedge it will represent for my portfolio. So I started looking into some aspects such as investing into residential or commercial real estate as well as the question of becoming (or not) a landlord. I’ve also looked into the possibility of renting property that I’d own though AirBnB (and an updated post here) and a few other questions I had been wondering about.

0% – P2P Lending – I started exploring the idea and wrote my first post about it here🙂

0% – Annuity – No intention of buying an annuity for the time being

0% – Farming – I know it sounds crazy but I’ve started looking into it as you can see from my post a couple of weeks ago

0% – Other ideas – I could end up starting other businesses or projects will I’ll certainly keep you posted about.

What I Am Not/Will Not Include

Pensions: I do know that the government will be paying me a sum of money once I retire. However, given how poor government finances look like these days, I personally think it’s crazy to count on the government actually fulfilling its promises. It won’t happen. Yes, there will be money, but not anywhere what is currently being promised. Whatever I do end up getting will be a nice surprise.

I feel like I am being extremely conservative here. By not including my government pension and also not including the fact that lower revenues will mean less taxes to be paid, I’m overestimating the amount of passive income that is truly needed. That is more than fine by me. I’d also like to think that my house will be paid by then making my level of spending lower all things being equal.

My Long Term Passive Income Objectives

January 2014: $12,000/year
January 2018: $25,000/year
January 2023: $50,000/year
January 2030: $100,000/year

Things continue to go better than planned but the line isn’t as “upward” as I’d like. Since I get a significant portion of my savings from my year-end bonus, it’s not a big surprise though. I do hope to get some kind of jump in the next month… 🙂

pas3

Do you have any questions or comments? I’d love to hear any ideas or how you’ve been managing on your end as well!

 

Ultimate Sustainable Dividend Portfolio – November 2013 Update – Solid Performance

By: ispeculatornew | Date posted: 11.18.2013 (3:00 am)

investingIn September 2011, I did some in-depth research to find long term sustainable dividend stocks and have been doing updates on this Ultimate Sustainable dividend portfolio since then in the attempt to show how well such a portfolio can perform over the long term. I would personally say that things have been going very well and will certainly continue to evolve. I do have a few more things planned which I will discuss in the near future.

This month turned out very well as the USDP outperformed the S&P500 significantly;)

The USDP is obviously a critical part of my now very public quest to replace my job income with passive income. you can see my most recent update here.

Things continue to go very well for the USDP which I’m thrilled to see. Very exciting stuff and I’m thrilled with how things have gone so far. I have done a couple of trades and continue to work on optimizing it, if ever you would like to receive those types of updates, please join, it’s free:

Keep in mind that this portfolio was built by selecting 20 stocks out of thousands. The goal is not to pick the best dividend stocks but rather to pick a diversified, high quality portfolio that will keep dividends increasing over time.

Here are the holdings as of last night to start off:

TickerNameSharesNov 15 2013 PriceNov 15 2013 Values
OMCOmnicom Group Inc29$69.95 $2,028.55
MSFTMicrosoft Corp71$37.84 $2,686.71
JCIJohnson Controls Inc39$49.45 $1,928.55
PEPPepsiCo Inc/NC27$86.03 $2,322.81
ETNEaton Corp31$72.30 $2,241.30
DOVDover Corp23$93.30 $2,145.90
ITWIllinois Tool Works Inc27$79.65 $2,150.55
XLNXXilinx Inc37$43.66 $1,615.42
SJMJM Smucker Co/The19$109.35 $2,077.65
BLKBlackRock Inc10$303.19 $3,031.90
TROWT Rowe Price Group Inc28$79.99 $2,239.72
OXYOccidental Petroleum Corp21$97.54 $2,048.34
COPConocoPhillips25$73.30 $1,832.50
XOMExxon Mobil Corp19$95.27 $1,810.13
ADIAnalog Devices Inc43$50.69 $2,179.67
HASHasbro Inc31$52.73 $1,634.63
MATMattel Inc42$46.18 $1,939.56
INTCIntel Corp53$24.52 $1,299.56
AFLAflac28$67.48 $1,889.44
BAXBaxter International23$68.66 $1,579.18
IVZInvesco Ltd67$33.84 $2,267.28
VWOVanguard FTSE Emerging Markets28$41.61 $1,165.08
BNDVanguard Total Bond Market13$80.95 $1,052.35
Cash$375.02
USDP $45,541.80
SPX13.80378067 $3,217.11 $44,408.22

Dividends Received

November turned out very well as you can see as the portfolio generated $111, which is 40% more than the same month last year.  Take a look at the progress:

usdp2

Ultimate Sustainable Dividend Portfolio News

Nothing to report in terms of increased dividend which is a shame. A significant piece of news is the fact that Berkshire announced it now held a stake in Exxon (XOM) which is obviously great news and already pushed up the stock.

Returns

It was certainly a great month for the USDP as I gained a slightly bigger edge over the S&P500 (total return). As I continue to add exposure to alternative asset classes, I do expect returns to be less correlated with the S&P500, hopefully doing better.  Here are the top and worst performers:

Top Performers
Hasbro (HAS) +18,19%
Johnson Controls Inc. (JCI) +17,32%
Exxon Mobile (XOM) +15,18%

Worst Performer
XLinx Inc. (XLNK) -4,38%

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Trades

If you remember, last month I started adding positions in 2 ETF’s, Emerging Markets (VWO) and Bonds (BND) to add diversified income. I did a bit more of that this month as I added about $400 into each one. I’ll need to do that a few more times to get closer to the target weight.

Buying Property To Rent Out (AirBnB style): Getting Easier And More Complex?

By: ispeculatornew | Date posted: 11.06.2013 (3:00 am)

airbnbI’ve written a few times about my desire to start generating some of my future passive income through real estate. I’ve looked into:

I also looked into the idea of buying real estate like a condo for example and then renting it out through short term rentals thanks to sites like AirBnB. One of my biggest fears was the time that would be involved, especially needing to meet those renting to give them the keys, etc. Since then, I’ve continued to do my own research and did stumble into a few different things:

Lockitron: I’m not associated with this business but think it’s brilliant. Basically, it’s a way to open a door through a smartphone. This would be very helpful because I could own a condo in another city and not have to manage the key part. Basically, the renter could simply call me (or anyone else I decided) to have us open the door remotely. Once that’s done, the person could simply get the key inside the condo, stay there for a few days and then leave the key inside (I could lock the condo remotely as well). This simplifies things significantly. I would then only need to have someone to do cleaning between visitors, etc. Yes, there might be a few instances where I’d need more but in 95% of cases, I could do everything remotely which is a big difference.

Legal Complexity: While one issue is getting easier, others are not. AirBnB, which is the biggest “short term rental” player has been facing an increasing number of legal challenges. Both in Quebec and in New York State for example, those renting through sites like AirBnB have been acting illegally. That is also the case in many other places around the world. Why? Partially because the government wants to keep control of such activities so it wants to issue licences, charge taxes, etc. Another part of the problem is that hotels are increasingly seeing this type of activity as a threat to their business model so they are lobbying very hard to limit the growth.
Even in places where it’s currently happening, it’s usually unclear if it the government will come out with specific legislation to address this which makes it very difficult to invest money and counting on these returns to keep up. There are still some very successful stories coming out, here is one great example:

Clearly, this strategy has been working very well for several real estate investors and does end up providing decent income. It does require some organization, especially at the start but I get the feeling that once it’s set up correctly, it can become a solid source of income.

I’ve also heard from a few readers who’ve had success making me increasingly tempted to try this out. What about all of you?

 

Ultimate Sustainable Dividend Portfolio – October 2013 Update – Adding ETF’s To The Mix

By: ispeculatornew | Date posted: 10.17.2013 (3:00 am)

pas2In September 2011, I did some in-depth research to find long term sustainable dividend stocks and have been doing updates on this Ultimate Sustainable dividend portfolio since then in the attempt to show how well such a portfolio can perform over the long term. I would personally say that things have been going very well and will certainly continue to evolve. I do have a few more things planned which I will discuss in the near future.

The USDP is obviously a critical part of my now very public quest to replace my job income with passive income. you can see my most recent update here. I recently came back from vacations and I can tell you that it’s one incredible motivation.. Not that I needed it but wow:)

So today, I decided to do something I had hinted I might do a few months ago. I’m adding some ETF’s to the USDP. I know that some of you will not agree with it but hear me out. I’m trying to build a long term portfolio that will be able to generate an increasing amount of income. Currently, I’ve been restricting myself to US traded stocks which is fine but also means that I have a lot of concentration in that portfolio. Here are in my opinion the benefits & downsides of adding ETF’s:

Pros:

-Getting exposure to 2 types of assets that are currently too expensive to do (international stocks and bonds – I’ll also consider adding a REIT ETF)
-I’ll be able to do better for the same level of risk (in theory)

Cons:

-Fees – I’m paying around 0.20% annually on those holdings which could add up over time
-Comparing the USDP returns with the S&P500 will not make as much sense given the fact that I’ll have other types of exposure

So what is the plan for now? I’ll slowly build positions in 4-5 ETF’s that might grow to around 15-20% of the USDP. I’ll adjust over time.

Things continue to go very well for the USDP which I’m thrilled to see. Very exciting stuff and I’m thrilled with how things have gone so far. I have done a couple of trades and continue to work on optimizing it, if ever you would like to receive those types of updates, please join, it’s free:

Keep in mind that this portfolio was built by selecting 20 stocks out of thousands. The goal is not to pick the best dividend stocks but rather to pick a diversified, high quality portfolio that will keep dividends increasing over time.

Here are the holdings as of last night to start off:

TickerNamePriceEPSPE RatioPE Next YearReturn YTDSales GrowthAnalyst ratingBook ValueBetaEarningsMkt CapRevenue/ShareSales 5Y Avg GrowthEPS 5Y Avg Growth
RAXRackspace Hosting Inc38.210.7857.0350.88-48.5527.723.637.071.022/12/20145.34B9.6823.126

Dividends Received

October is one of those rare months where income ($29) will end up being lower than the same month last year. It’s not ideal but nothing to worry about for now.  Take a look at the progress:

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Ultimate Sustainable Dividend Portfolio News

Not much to report here. one of the USDP Holdings, Omnicom (OMC) announced a special $2.00 dividend. It’s not clear when it will be paid but that will be a nice bonus:)

Otherwise, Microsoft is increasing its quarterly dividend by 22% which will help out.

Returns

Not much to report here. Unfortunately, the portfolio slightly underperformed in the past month. Not by much though and it does remain ahead of a similar S&P500 portfolio (that reinvests all dividends). Not bad at all.  Here are the top and worst performers:

Top Performers
Occidental Petroleum Corp OXY 8.13%
BlackRock Inc BLK 6.53%
Aflac AFL 6.09%

Worst Performer
Baxter International BAX -6.06%

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Trades

Tonight I made 2 trades as I hinted a bit earlier. I bought stocks of 2 ETF’s
VWO Vanguard FTSE Emerging Markets
BND Vanguard Total Bond Market
Those add 2 segments that were clearly missing from the USDP.

Passive Income Update – October 2013

By: ispeculatornew | Date posted: 10.16.2013 (3:00 am)

retire_22The reason I post this monthly update is both to keep myself accountable but also have a more public discussion about my plans and how I can become financially independent as quickly as possible.

With both sides of the US government acting like complete fools these days, more than ever I feel like being financially independent is critical, don’t you? So here is how I went about this whole process:

For example, if my base salary is currently 100K, my objective is to make 100K of passive income on an annual basis. This could be done through a variety of methods which I will be exploring of course. A few people tried to figure out how much capital I have by looking at the USDP size. The main issue is that the USDP is only part of my dividend income. I also get income from my ETF holdings, etc.

My primary objective remains to generate 100K in passive income on an annual basis as soon as possible, ideally from a few different sources.

October Updates

-The latest update of the USDP will be published tomorrow so stay tuned…here is last month’s update
-I also discussed the idea of running out of money at retirement

How Much Do I Really Need?

I am aiming for an income of 100K or so, before taxes as a first goal. To be clear, I feel like I need significantly less than that. Why? I’ve described how I am living off of significantly less right now (I’m paying taxes, paying my house, saving, etc). I also have the option, as discussed of retiring in a foreign location. I discussed the idea of needing 100K in yearly income here.

Overall, I feel like aiming for the same level of income as I am currently making is very very reasonable and I could easily live with less but why aim lower if I’m confident I can reach that 100K?:)

Why Am I Doing This?

pas-oct3

I’m a strong believer in working with clear objectives but also holding myself accountable so writing about these objectives will without any doubt help me reach financial independence more quickly.

Current Passive Income Flows:

5.81% – Dividend/Investing Portfolio: I am currently generating a dividend yield of about 3.40%. This portfolio will be increasing over time. I use a bucket system which I will be writing more about but the main retirement components are a long term dividend portfolio (see the Ultimate Sustainable Dividend Portfolio) and an ETF portfolio (see BuildYourETFPortfolio for more details on how I build mine). I saw a slight increase here thanks to markets rising and a similar yield.

7.48% – Private Investment In My Online Company: I have discussed how my web company has been the best investment of my life so far. I’m happy to say that I was able to slightly increase my monthly income from the company even though it wasn’t expected. I certainly hope that will keep happening.

Total: 13.29%

It’s not spectacular by any means yet. That being said, I am 32 years old and do have a decent base (I could live with less easily).. I will continue to work on getting that total as close as I can do 100%:)

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Passive Income Ideas

0% – Real Estate: I have started writing about adding real estate to my income flows. One aspect that I love about Real Estate Investing is how much of an inflation hedge it will represent for my portfolio. So I started looking into some aspects such as investing into residential or commercial real estate as well as the question of becoming (or not) a landlord. I’ve also looked into the possibility of renting property that I’d own though AirBnB and a few other questions I had been wondering about.

0% – P2P Lending – I started exploring the idea and wrote my first post about it here🙂

0% – Annuity – No intention of buying an annuity for the time being

0% – Farming – I know it sounds crazy but I’ve started looking into it as you can see from my post a couple of weeks ago

0% – Other ideas – I could end up starting other businesses or projects will I’ll certainly keep you posted about.

What I Am Not/Will Not Include

Pensions: I do know that the government will be paying me a sum of money once I retire. However, given how poor government finances look like these days, I personally think it’s crazy to count on the government actually fulfilling its promises. It won’t happen. Yes, there will be money, but not anywhere what is currently being promised. Whatever I do end up getting will be a nice surprise.

I feel like I am being extremely conservative here. By not including my government pension and also not including the fact that lower revenues will mean less taxes to be paid, I’m overestimating the amount of passive income that is truly needed. That is more than fine by me. I’d also like to think that my house will be paid by then making my level of spending lower all things being equal.

My Long Term Passive Income Objectives

January 2014: $12,000/year
January 2018: $25,000/year
January 2023: $50,000/year
January 2030: $100,000/year

Things continue to go better than planned but the line isn’t as “upward” as I’d like. Since I get a significant portion of my savings from my year-end bonus, it’s not a big surprise though. I do hope to get some kind of jump in 3 months that will be enough to notice on this chart:)

pas-oct

Do you have any questions or comments? I’d love to hear any ideas or how you’ve been managing on your end as well!