Passive Income Report – Q2 – 2018

Whelp, we made it past the 2nd quarter of 2018.  It was a pretty flat one.  I was out of work for a few months, but I’m back at it.  Ahh, I wish I was still free!  It was just a temporary glimpse of financial independence

My investments haven’t changed dramatically.  This was due to being out of work for almost the whole quarter.    

Some investing outlets I’m still researching…

  • Website Investing – The Mad Fientist has a great post that relates to this and has interviewed the writer of the post in a podcast.  I think it could be a fun learning experience.  The scary thing is I’m realizing that you’re better off buying a larger, well established site.  While the returns of course would be better, it requires more capital which is a little intimidating.
  • Real Estate – I’m likely planning on this next year.  I’m confident that I can rent my condo quickly and I may have an opportunity to move temporarily to another state for a year.
  • Stock Dividends – Although I know the common recommendation of many is not to stock pick, I do it anyway.  Looking for value based on timing in the market.  Typically big name stocks and the ones that pay decent dividends so I’m sure there will be more of this.

Nothing crazy to report for this past quarter.  Here are my updated numbers for Q2 – 2018:

passive income chart q2 2018

Still phasing out peer-to-peer lending.  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 completely realize I’m cheating 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.  It’s sort of passive, but I know in 3-5 years all of the money will be pulled out and gone.

Here are the hard numbers compared to last quarter: 

Q1 – 2018

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

Q2 – 2018

Name Quantity Payout Frequency Amount Per Month
ATT Stock 200 $0.50 4 $33
Nokia Stock 2,000 $0.24 1 $39
Microsoft Stock 100 $0.42 4 $14
Coca Cola Stock 300 $0.39 4 $39
Vanguard 1 $93.00 4 $31
Betterment 1 $333.00 4 $111
LendingClub 1 $787.00 4 $262
GameStop 100 $0.38 4 $13
Total: $530

Changes from Q1 – 2018 to Q2 – 2018.  Justifying the portfolio…

AT&T – I upped my position here.  They acquired Time Warner and it went a little nuts for a bit.  Analysts were pricing targets at $28 per share, which seemed a bit crazy to me considering it would have made their dividends a record high in the history of the company.  Dividends are currently 6.23% as I write this.

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.  I sold a few shares, but am planning on holding here for a while.  It did pay out this quarter, but in my numbers I decided to average out the income over the year.  I may decide to change that in the future.

Microsoft – Do I need to say more?  If you’re an Apple lover maybe you don’t get it.  They don’t pay heavy dividends, but they do pay some and 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.  No change of investment this last quarter.

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.  No change of investment this last quarter.

Betterment – This quarter hasn’t gone as well as last quarter.  I’m assuming there are some annual or semi-annual dividends paid out in first quarter that didn’t come in the second.  I’ve actually already made more in the first few days of Q3, so we’ll see what other dividends come trickling in for the Q3 post!

GameStop – A new addition this quarter.  The dividends are in the realm of 10% and after reading further into the company I’m hopeful.  I didn’t go crazy, but it was enough to give me $13 a month in additional dividend income.

Vanguard – I did slightly better than last quarter, but did not add any additional investments.  A whole extra $1 per month!  I’m not complaining, it’s progress!

Lending Club – As I pull out these funds as they pay out, this quarter ended up paying me more than expected.  It came out to about $100 extra each month as compared to last quarter.  This was unexpected and I definitely understand this won’t last forever.  I’m still counting it until the day I have all my funds pulled.  Why?  Because I want to and I can 🙂

Anything Other Investments?

Not yet.  I am looking further into website investing, but might have to wait until the right opportunity comes.  I have some money in a high yield savings but still not worth mentioning right now.  I now have $530 per month coming in!  Due to the higher payouts in Lending Club, I beat last quarter by $53 per month.

What Bills Can I Pay?

  • Cell Phone ($35)
  • Gas for driving ($80)
  • Electric ($50)
  • Amazon Prime ($10)
  • Internet/Cable ($50)
  • Gym +$60 ($80)
  • Dental Insurance ($28)
  • Condo Insurance ($20)
  • Car Insurance ($25)

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.

I signed up for a nicer gym, which isn’t very frugal of me, but I love it.  My use of time is worth it to me so that increases my monthly spending by $60.  I can always opt out during any month if I deem it not worthy anymore.

Anything left?  Yeah, actually $152 per month left over even after adding the new expensive gym.  Unfortunately, not enough to pay any of the “monsters” yet…

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

What Goals Do I Hope To Accomplish In 2018?

I was aiming to eliminate:

  • HOA
  • Health Insurance

I am realizing I was a little bold to include both of these larger bills.  I’m going to take it down a notch to just the Health Insurance.  I’m fairly confident that I will achieve that and a bit more this year.  I can aim to cancel my HOA with passive income next year!

I’m hoping for some better dividend payouts in this next quarter as I increase my stake in Vanguard and potentially some other stocks.

*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 but at such a small return I’m not too concerned.  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’m not figuring taxes in.  Am I fooling myself?  Maybe, but I’m okay with that for now.    

 

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge