Passive Income Report – Q1 – 2018

This is the first passive income report post!  My main goal for 2018 is really just to bump up my passive income in dividends, while also looking into new outlets.

Which new outlets?

  • Website Investing – Starting the research here.  The Mad Fientist has a great post that relates to this.  My biggest concern is getting scammed.  I think it could be a fun learning experience though.
  • Real Estate – I purchased a condo a year ago that I currently live in.  I do see potential here to become a landlord in the future.  I’m not optimistic about it being this year though.
  • Stock Dividends – Although I know the common recommendation of many is not to stock pick, I do it anyway.  Typically big name stocks and usually pay dividends so I’m sure there will be more of this.

That’s my current mission.  I’m sure as time goes on I’ll learn more and make adjustments.  So what do my numbers look like for Q1 – 2018?

 

 

 

 

 

 

 

 

If you look at the chart above you can see where my investments currently stand for monthly income.  This is monthly based on Q1 totals.  In the case of Nokia stock, I had to make an exception since it pays only once a year and I want to count it in the monthly numbers.

So the breakdown is stocks, index funds,  and peer-to-peer lending (which I’m phasing out).  Why the phase out?  I’ve tested the waters for the last two years and it’s done poorly.  Barely 2% return, which you can read about here.  I’m not sure if it’s just my bad luck, but I am not getting near the returns that most people are claiming or even Lending Club claims to have.

I am cheating slightly with Lending Club.  Since I’m phasing it out, I’m basically pulling all funds so whatever I pull each quarter I will include in the numbers.  Technically it’s passive, but I know in 3-5 years all of the money will be pulled out.  

Here are the hard numbers: 

Name Quantity Payout Frequency Amount Per Month
ATT Stock 125 $0.50 4 $21
Nokia Stock 2,160 $0.24 1 $43
Microsoft Stock 100 $0.42 4 $14
Coca Cola Stock 300 $0.39 4 $39
Vanguard 1 $89.48 4 $30
Betterment 1 $509.21 4 $170
LendingClub 1 $483.56 4 $161
Total: $477

Changes this quarter?  Justifying my portfolio…

AT&T – A recently acquired stock as it’s now at a 5 year low and the dividend yield is over 6%.  I don’t see them going anywhere anytime soon and I probably plan on snagging up a few more stocks while they sit at what I’d call a discount.

Nokia – Is a bit of a leap.  They’ve heavily invested in 5g networks for mobile capabilities in the next few years.  I’m hoping with that and a few other tricks up their sleeve that they’ll make some money.  Also the dividend yield was ~4% when I purchased it.

Microsoft – Do I need to say more?  They don’t pay heavy dividends, only around 1.7%, but they’re a major player in the market.  Their data analytics and cloud hosting services are starting to do very well.  I see a lot of upside so I’m hoping to maybe buy more in the future.

Coca-Cola – Just a rock stock.  They’ve been around forever and Warren Buffet has heavily believed in them for many years.  I know he’s not as confident as he once was, but they’re still making the right changes in a health conscious climate.

Betterment – This was my first step into index funds outside of my employer.  I since have pulled my retirement funds into here as I’ve been self employed.  This is where most of my allocation goes, which is why the return in dividends is the highest.  .25% fees isn’t too bad.

Vanguard – While Betterment supported no fees for my first year (and less thinking) I have now moved on to keep future funds lower.  I expect better dividend returns for Q2 since I started Vanguard in Q1 and just started adding funds.  With Vanguard I can get lower than .25% in fees.  It’s somewhere around .15% in fees so any savings there I figure is worthwhile in the long run.

Lending Club – A peer-to-peer lending site.  I wanted to experiment with this and after a little less than 2 years of it I’m giving up.  I’d rather put that money into my mortgage payment since the returns aren’t high enough.  I’ve been pulling funds for probably 6 months, but I won’t get all of the cash flow out for a few years.  Until then I figure it’s passive enough.

Anything Other Investments?

That’s about it.  I have some money in a high yield savings but not worth mentioning right now.  Considering 3 years ago I was running on “E”, I’m super happy with this first post.  I now have $477 per month coming in!  What’s great, is that I only expect better numbers over time (fingers crossed).

Betterment is somewhat variable.  I’m looking forward to seeing what those numbers turn into the next quarter and the same with Vanguard.  Who knows, maybe it’ll be less?

What Bills Can I Pay?

Now that there’s money flowing in each month without working for it that means I can pay some bills with it!  So what bills can I pay for?

  • Cell Phone
  • Gas (driving)
  • Electric
  • Amazon Prime
  • Internet/Cable
  • Gym
  • Dental Insurance
  • Condo Insurance
  • Car Insurance

Anything left?  Yeah, actually $107 per month left over!  I’ve paid for almost every bill!  Honestly, this is unbelievable and 3 years ago I would have never believed it.  Taking one step after another great things started to happen.

What Bills Are Left?

I have 3 “bills” left that I must pay each month.  I’m not including expenses like fun money, restaurants, or even groceries because those aren’t really “bills” and can vary depending on how I want to spend.  Those expenses are what I would consider a next tier goal of financial freedom.

The last 3 are the largest, which is the reason they’re left…

  • HOA (Condo Association Dues)
  • Mortgage
  • Health Insurance

Since I live and own a condo they require that I pay association dues.  I’d love to eliminate that one next.  That sort of handles things like gas for heat, water, trash, maintenance, and general building insurance.  Technically, if I’m just going in order by the cheapest I should pay off the Health Insurance.  Lastly it’d be the mortgage, the mother of all bills!

What Goals Do I Hope To Accomplish In 2018?

Hell, after writing all of that I think I’ve already accomplished more than I could have dreamed!  None-the-less I’m going to aim for eliminating:

  • HOA
  • Health Insurance

I’ve already got a start on it and I should be starting a new project soon that should generate a solid income stream to continue my investment portfolio.

*Last Note:  I do realize that the money would be taxed had I decided to pull the money out.  In fact, Lending Club is actually getting taxed due to me not re-investing into more loans.  For now, all stock and index dividends are getting reinvested though.  I can number crunch later when figuring out taxes, etc. but for the purposes of achieving my shorter term goals I will not figure taxes in.  Am I fooling myself?  Maybe, but I’m okay with that for now.    

 

 

 

 

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