Passive Income Report – Q3 – 2018

Another one to add to the books.  Q3 felt very much like Q2 to me, pretty flat in general with maybe a slight upside.  I was back to working on a project for a few months – that’s already ended.  I’m enjoying some time off AGAIN while contemplating my next move as to whether it’s another contract or a full-time position.

I was able to add a bit to my investments – mostly to Vanguard.  I’ve been playing around wayyy too much with stocks.  It hasn’t hurt me, but I should probably stick to playing the long game.  I’ve moved all of my funds from Ally into Robinhood so when I do buy and sell stocks, I don’t have to pay the $5 brokerage fee each time.  This should save me a few bucks in the long-run.

Making Adjustments Going Forward

I’ve decided to change the way I was reporting all of my passive income numbers.  I want to keep everything as accurate as I can so that means I will only report the payouts as they came into the actual quarter.

Here are the changes:

  • If a stock pays once a year I will only report that in the included quarter
  • I’ll be deducting fees by Betterment or Vanguard or whatever platform so that numbers are more accurate
  • I’m now only including ACTUAL payouts in the quarter – not stocks I bought and for some reason included the dividend potential values

I was fudging myself by including numbers that maybe hadn’t quite paid out yet or even dividing the stock into quarters if it only pays once a year.  I was fooling myself a bit and since I keep playing around with stocks, I don’t want to log inaccurate numbers.  I’m also deciding to deduct any fees from the accounts in the numbers to keep it as accurate as possible.

Here are my updated numbers for Q3 – 2018:

Income Report Chart Qtr 3 2018

 

LendingClub was my largest return per month, but Betterment was not far behind and Vanguard will eventually catch up.  I’ve also decided to give LendingClub a second chance.  If you’ve read my review post on LendingClub, you’ll know that I decided to continue to pull out funds.  This last month I decided to try and re-invest.

Why the change of heart? 

Well, I mentioned that I think you can make better returns than I made if you actually hand pick the loans instead of doing automated investing.  I did a little more research and decided to do that in order to see if I can increase my rate of return.  I’m optimistic and will report on how that goes.

Here are the hard numbers compared to the previous 2 quarters of the year:

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

Q3 – 2018

Name Quantity Payout Frequency Amount Per Month
Realty Income Dividend 1 $23.10 4 $8
Coca Cola Dividend 1 $117.00 4 $39
AT&T Dividend 1 $100.00 4 $33
Capital One 360 Money Market 1 $39.94 4 $13
Vanguard 1 $170.82 4 $57
Betterment 1 $450.67 4 $150
LendingClub 1 $642.38 4 $214
Acorns Dividend 1 $7.01 4 $2
Stash Dividend 1 $5.47 4 $2
Total: $519

Changes from Q2 – 2018 to Q3 – 2018.  A LOT…

Overall, it APPEARS that I didn’t do as well as last quarter, but I actually did improve.  Now that I’m deducting fees, that lowered my amounts.  I also sold my stocks to get out of my Ally trading account and move into Robinhood since they have zero fee trading as I mentioned earlier in the post.  This will help me save from $5 trading fees in the future.  I’ve been going a bit investment app crazy, so I’m hoping things will stabilize.

Betterment – Not a bad quarter.  It was better than Q2, but not as good as Q1.  I’m okay with that though, and I’m not investing any further funds at this time to my account.  I’ll keep monitoring and see how things go.  Q4 is already looking promising.

GameStop – I’m not including this into my passive income but, I sold this stock and made a pretty penny.  Somewhere between $2,000 – $2,500, which would have brought my numbers dramatically higher.  The value of the stock was purely based on speculation and I decided it was worth the payout and skipped on the dividend.  The decision proved to be the right one.

Vanguard – I’ve been adding to this account for a few months and that has shown on the balance sheet.  Not quite double the dividends, but pretty close!

Lending Club – I still pulled out a good amount this last quarter, but I also re-invested a few hundred dollars already as well (and obviously not included as income).  I’m going to see if I can increase the returns if I hand-pick the loans.  I’m feeling a little more confident about this approach.

Other Dividends – There were a few dividend payouts I did get from stocks I had previously.  I still believe in Coca-Cola and Microsoft as companies so I plan to invest back into both.  My portfolio got a bit screwed up by moving my funds to Robinhood so I’m hoping this will all balance out in the next two quarters.

Capital One 360 – It was enough to move the needle this time so I included the interest from my Capital One 360 Money Market account.  Since I was employed again I was able to capture money into those reserves.  Now that I’m currently unemployed, I’m sure those funds will come in handy.

Acorns and Stash – I’ve been into Acorns most of the year, but now the balance is getting high enough to begin including the dividends.  Before, with the fees it was not worth counting quite yet.  I’ve also started a Stash account, although I’m not sure how I feel about the overall fee structure.  This may be short lived.  Time will tell.

What Bills Can I Pay?

  • Cell Phone ($26) – $9 Less & More Data – Switched from Boost Mobile to Mint Mobile
  • Gas for driving ($80)
  • Electric ($50)
  • Amazon Prime ($10)
  • Internet/Cable ($50)
  • Gym ($80)
  • Dental Insurance ($28)
  • Condo Insurance ($20)
  • Car Insurance ($25)

My cell phone bill is now $0 until next year!  I decided to pay the entire year with Mint Mobile, but since it still cost me $26 per month, I’m still including that amount.  Either way, it’s a deduction from the $35 I was paying before!

What Bills Are Left?

I still have the same 3 bills left:

  • HOA ($311) – Condo Association Dues
  • Mortgage ($794) – Reduced due to overpaying taxes
  • Health Insurance ($276)

I still can’t afford to pay for any of these bills.  Now that I’m being more honest about my numbers, I’m not as optimistic that I’ll be able to knock any one of these specific bills by the end of the year.  If I gain employment soon there’s a decent chance that I’ll knock one out, but that’s still up in the air.

Another great thing about this quarter was that I was able to get my mortgage bill reduced by about $34.  I was overpaying my escrow and had the mortgage company re-balance.  They also gave me a check for $400, which I was stoked about.

What Goals Do I Hope To Accomplish In 2018?

I was aiming to eliminate:

  • HOA
  • Health Insurance

I know it was very bold to think I could eliminate both of these bills with my dividend income this year.  There’s still a shot that I’ll be able to cover my health insurance premiums with dividend income by the end of the year.  Either way, I’m still very happy that this quarter was consistent in improvements even if the numbers show a slight reduction.

I also have more free cash-flow than I had previously so if I do gain employment soon I can feel better about putting those funds into other investments.  Here’s to another great quarter!

 

*Last Note:  I do realize that the money would be taxed had I decided to pull the money out.  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.    

 

 

 

 

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