Author Topic: passive income just rolled into 4 digits yearly  (Read 4733 times)

strider3700

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passive income just rolled into 4 digits yearly
« on: May 21, 2013, 10:48:35 PM »
I was playing with my spreadsheets and listed the dividends, GIC's, and cash I get on it. Then I worked it out for daily,weekly,monthly and yearly.   Last Fridays automatic savings transfers put me at $1001.04 in interest or dividend distributions.  That's almost 1 weeks pretax income for me.  I've only been serious about working on this since March 1st. Roughly 2/3 of the money is locked into GIC's paying crappy rates or cash paying worse rates.  Overall I'm making a crappy 2.28%. Hopefully that will shift closer to 4% by the end of the year as the majority of my savings are going into ETF's and not staying in GIC's.  The cash balance will remain stable.  I sleep better with it there. 

My wife isn't impressed but I'm damn happy about that. 


gooki

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Re: passive income just rolled into 4 digits yearly
« Reply #1 on: May 22, 2013, 01:12:51 AM »
Awesome stuff.

SunshineGirl

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Re: passive income just rolled into 4 digits yearly
« Reply #2 on: May 22, 2013, 09:35:46 AM »
Very cool!

jrhampt

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Re: passive income just rolled into 4 digits yearly
« Reply #3 on: May 22, 2013, 10:11:52 AM »
Very nice!  This was one of my milestone goals as well.  Next we have to shoot for 4 digits monthly!

strider3700

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Re: passive income just rolled into 4 digits yearly
« Reply #4 on: May 22, 2013, 10:53:25 AM »
well 5 digits yearly comes before 4 digits monthly.    according to my spreadsheet both are roughly 12 years out at my current return rate.  I'll update the numbers when I get things closer to the 4% goal.   give my 7 more months so I can lock in a new 10 year term on my mortgage and then hopefully interest rates start climbing...   

worker parasite

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Re: passive income just rolled into 4 digits yearly
« Reply #5 on: May 23, 2013, 05:22:00 PM »
Congrats! I'm a fellow Vancouver Islander who's looking forward to hitting that goal soon within my TFSA, I'm at $931 and should crack $1000 annually within the next couple of months. I'm looking forward to 3 digits monthly soon afterwards :)

GrayGhost

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Re: passive income just rolled into 4 digits yearly
« Reply #6 on: May 23, 2013, 09:56:29 PM »
Nicely done, sir. I've started to research some dividend-paying investments... currently, I'm leaning towards index funds or maybe a couple of ETFs. Does anyone have any advice with respect to what sort of investments are good for this purpose?

strider3700

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Re: passive income just rolled into 4 digits yearly
« Reply #7 on: May 23, 2013, 10:39:16 PM »
I'm far from an expert but I'm 100% ETF's outside of cash and GIC's.     my ETF's are mostly index funds.   I had a list of 50 to pick from that are commission free at the place I'm investing in so they're a little convoluted.   I had two that cover the TSX,  1 for the S&P 500, 1 that the is international in nature and holds something like 3000 stocks.  After that I have 2 for bonds,  1 corporate, 1 gov,    1 that is full of cdn financials and bonds and 1 that is pure play speculation on my part,  Agricultural.       

Because I invest weekly the commission free is important to me.   If I wasn't doing that I'd have chosen a little differently.  For instance the S&P 500 and 1 of the TSX funds pay no dividends.   

Good point about the 3 digits monthly goal.   Little goals are important to keep motivated.    I should achieve 3 digits monthly in 11 months however if I increase the rate of return by half a percent I'm already there.  little shit matters with large enough numbers.

worker parasite

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Re: passive income just rolled into 4 digits yearly
« Reply #8 on: May 25, 2013, 01:38:32 PM »
Within my TFSA I have mostly dividend paying investments, an ETF that includes nothing but Canadian preferred shares, a REIT, a small speculative investment in a (mostly) green energy provider, and a Canadian dividend ETF. I'm investing twice a month, so no fees are important to me as well. My RRSP holds primarily index funds, went heavy on the S&P 500 a couple of years ago, but also the TSX, a small position in Canadian bonds, and a Global index fund.

I'm also no expert, but for dividend payers I chose a fund that includes only companies that have maintained their dividends for a certain period (can't remember off the top of my head), and similar with the preferred share fund. For the REIT I chose the single company that makes up the bulk of most REIT funds in Canada to save on fees. I don't think the particular funds I chose are all that amazing, there were lots of good alternatives that have done as well or better over the same time.

The small goals are important, it's nice to hit them every few months/year or so and give yourself a little pat on the back :)