Author Topic: Passive Income - Race to 10k per year  (Read 3232 times)

Milkm4n

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Passive Income - Race to 10k per year
« on: August 16, 2018, 02:27:18 PM »
  Some of my favorite threads in this forum are the "networth race to" ones. So I decided to start one for anybody else interested in tracking passive income. I'm basically just tracking my dividend income, using my rolling 12 month total. I'll kick things off starting with my July rolling total.

Passive Income
                                                   Rolling 12 month total

 July 2017.       $472.21                        $1815
 July 2018        $605.44                        $2848


I've increased my passive Income by over $1000 in the last year. I am aiming to complete this race in 3 years by July 2021, with a stretch goal of Dec 2020.

haypug16

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Re: Passive Income - Race to 10k per year
« Reply #1 on: August 17, 2018, 12:35:55 PM »
Fun challenge. I'm in!

12 month Passive income rolling total

July 2017 to 2018 = $1,852.44

Goal is to reach $10K by July 2023 stretch goal is July 2022

Milkm4n

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Re: Passive Income - Race to 10k per year
« Reply #2 on: August 18, 2018, 06:37:15 AM »
Welcome aboard @haypug16!!!

Do you have a strategy for increasing passive income? Or are you letting new investments build it over time?

The majority of my passive income is paid out quarterly, so that is where I expect my main increases to occur. My passive income streams are ESPP shares, registered investments (etfs enrolled in drip plans), "not so" HISA, and peer to peer lending.

I expect the main increases in my passive income to occur through new investments, increase in ESP div payout, enrolling in drip plans for all my investments, and eventually finding a better interest HISA.

Mezzie

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Re: Passive Income - Race to 10k per year
« Reply #3 on: August 18, 2018, 08:53:12 AM »
Ooh... this should be fun. Right now I'm at about $1500/year, so I've got a ways to go!

RWD

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Re: Passive Income - Race to 10k per year
« Reply #4 on: August 18, 2018, 09:52:22 AM »
We're at ~$8,700 now. So nearing the end of this race. I'm assuming we'll be there within a year.

Milkm4n

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Re: Passive Income - Race to 10k per year
« Reply #5 on: August 18, 2018, 06:29:29 PM »
Welcome @Mezzie and @RWD. Great to have people at different stages of the race.

haypug16

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Re: Passive Income - Race to 10k per year
« Reply #6 on: August 20, 2018, 08:45:58 AM »
Welcome aboard @haypug16!!!

Do you have a strategy for increasing passive income? Or are you letting new investments build it over time?


Yes my plan is basically to have my new investments generate more and more passive income. Each month I've been setting aside more and more money to go into my 401K and then when I get to max out level (end of this year or Jan 2019) I'll be going to a Roth IRA, and then finding other investment options.

Milkm4n

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Re: Passive Income - Race to 10k per year
« Reply #7 on: August 31, 2018, 02:02:33 PM »
August update

                      Rolling 12 months

July 2017 -         1815
July 2018 -         2848
Aug 2018 -         2877  ($29 increase)

Small increase in passive income as expected. No major actions taken to increase passive income this month. Now that I am back to work,hoping to start making greater contributions which should help with a bigger increase when quarterly dividends roll in.

haypug16

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Re: Passive Income - Race to 10k per year
« Reply #8 on: September 04, 2018, 09:12:28 AM »

12 month rolling total
July 2017 to 2018 = $1,852.44
August 2017 to 2018 = $2,332.03 +479.59 increase

I was a little surprised to see such a jump from July to August but I'll take it. I have been actively increasing my contributions every month for the past year so it does make sense that it would have gone up I just wasn't expecting close to $500 more. :) Curious to see what next month looks like

Milkm4n

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Re: Passive Income - Race to 10k per year
« Reply #9 on: September 08, 2018, 09:54:12 AM »

12 month rolling total
July 2017 to 2018 = $1,852.44
August 2017 to 2018 = $2,332.03 +479.59 increase

I was a little surprised to see such a jump from July to August but I'll take it. I have been actively increasing my contributions every month for the past year so it does make sense that it would have gone up I just wasn't expecting close to $500 more. :) Curious to see what next month looks like

Very nice increase, great job 👍

ItsALongStory

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Re: Passive Income - Race to 10k per year
« Reply #10 on: September 08, 2018, 01:38:08 PM »
Maybe I'm stupid but how can I tell my dividends in 401k if I'm nearly 100% in Target fund type investments?

Also, why wouldn't we consider market gains on investments any less passive vs dividends?

HouseFIRE.us

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Re: Passive Income - Race to 10k per year
« Reply #11 on: September 08, 2018, 02:01:29 PM »
I'm not here to rain on anyone's parade. But don't you think 10k/year in passive income really low? You can buy a few very affordable houses out of state, rent or owner finance them, and easily meet that goal - if not surpass it. My goal is to have 10k/month in passive income through real estate.

Goldielocks

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Re: Passive Income - Race to 10k per year
« Reply #12 on: September 08, 2018, 02:29:45 PM »
I'm not here to rain on anyone's parade. But don't you think 10k/year in passive income really low? You can buy a few very affordable houses out of state, rent or owner finance them, and easily meet that goal - if not surpass it. My goal is to have 10k/month in passive income through real estate.

I would argue that real estate is not fully passive income, even with a manager...  unless you are just a silent partner that gives money to another partner who chooses the properties.

Quote
  author - Itsalongstory
Also, why wouldn't we consider market gains on investments any less passive vs dividends?

Income from dividends/ interest appears automatically in your account.. many retirees try to create this for the bulk of their retirement income, only withdrawing capital gains as needed.  So it is a pretty good stand alone target to practice on.  Dividend income is also helpful for some tax situations but --I have found that trying to generate dividend income through investments is a bit more challenging, than just broad market ETFs.   You should be able to get similar overall returns, but it is quite different when trying to build a portfolio that generates dividends.

Huh,  I have not been focused on dividends except for my non-reg account that I started about 1 year ago... so this is the first time I calculated it... neat suggestion. 

Fomerly known as something

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Re: Passive Income - Race to 10k per year
« Reply #13 on: September 08, 2018, 04:17:40 PM »
I'm not here to rain on anyone's parade. But don't you think 10k/year in passive income really low? You can buy a few very affordable houses out of state, rent or owner finance them, and easily meet that goal - if not surpass it. My goal is to have 10k/month in passive income through real estate.

We have a race to positive net worth, no the bar is not low.   It's likely just the first goal before a new goal.

Milkm4n

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Re: Passive Income - Race to 10k per year
« Reply #14 on: September 09, 2018, 07:36:21 AM »
I'm not here to rain on anyone's parade. But don't you think 10k/year in passive income really low? You can buy a few very affordable houses out of state, rent or owner finance them, and easily meet that goal - if not surpass it. My goal is to have 10k/month in passive income through real estate.

I guess it all depends on where you are on your path to FI. For myself, and many other members of this forum, this goal is still a few years out. When I reach about 40k passive income I have reached financial independence. Hence, this is just a goal to hit along the FI journey.

haypug16

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Re: Passive Income - Race to 10k per year
« Reply #15 on: September 10, 2018, 10:42:20 AM »
I'm not here to rain on anyone's parade. But don't you think 10k/year in passive income really low? You can buy a few very affordable houses out of state, rent or owner finance them, and easily meet that goal - if not surpass it. My goal is to have 10k/month in passive income through real estate.

If you don't have $10K/year in passive income then no it's not low. This is a goal for people to reach for not the end game. My end game would be closer to $25K but someone started a $10K race so here we are. Also, I'm not about to just go out and buy a few houses!

sisto

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Re: Passive Income - Race to 10k per year
« Reply #16 on: September 10, 2018, 11:42:30 AM »
Anyone using MINT want to share how you would figure this out? I'm not seeing an easy way to capture it.

haypug16

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Re: Passive Income - Race to 10k per year
« Reply #17 on: September 10, 2018, 11:51:41 AM »
I don't use MINT but I just went to my 401K plan and ran a report for the past 12 months and it broke it down really nicely between contributions, dividends, and market change. I guess if you have a lot of different places for your investments it would be more difficult. Hope that helps :/

sisto

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Re: Passive Income - Race to 10k per year
« Reply #18 on: September 10, 2018, 02:37:57 PM »
I don't use MINT but I just went to my 401K plan and ran a report for the past 12 months and it broke it down really nicely between contributions, dividends, and market change. I guess if you have a lot of different places for your investments it would be more difficult. Hope that helps :/
You nailed it, I have a lot of different accounts. :P I'll check out Fidelity and see what I can find there for the majority of it. THANKS!

ItsALongStory

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Re: Passive Income - Race to 10k per year
« Reply #19 on: September 11, 2018, 12:24:52 PM »
I don't use MINT but I just went to my 401K plan and ran a report for the past 12 months and it broke it down really nicely between contributions, dividends, and market change. I guess if you have a lot of different places for your investments it would be more difficult. Hope that helps :/

I am using a target fund so I don't know that the dividends show up individually.

LinneaH

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Re: Passive Income - Race to 10k per year
« Reply #20 on: September 12, 2018, 07:35:58 AM »
I'd like to join.
Currently at $939 rolling 12 months :-) so long way to go. Also, I don't see a lot of additional money for investing in shares at the moment, it will rather be moving from shares to other shares (with higher dividend ratio as this is part of my plan).
But I will be on the lookout ofr 'new money' for this as well.

Fun challenge nonetheless - appreciated!

stimepy

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Re: Passive Income - Race to 10k per year
« Reply #21 on: September 12, 2018, 11:08:34 AM »
What the heck I'll join.   Though I am a little ahead of everyone, as I already track dividends at years end.  So I'll just post the ending year + current months roll up.
 
2017-12-29   Dividends: 837.01  Other: 28.76    Total: 865.77
2018-09-12   Dividends: 878.36  Other: 4256.93* Total: 5135.29    (*1 time big check add that played catch up but source will be a continued source of income)

And now I am impressed, had a few other sources of passive income start to trickle in this year that I am only casually tracking, even if I were to exclude that 1 time check, I'd still be 4k extra so far this year.   Neat.


As for tracking in Mint, it may or may not be possible to track dividends depending on the account(some of my accounts don't have anything other then totals), I see my dividends under "investment" and "Dividends and Cap".  Just go to transactions for the account and it should be there.   That being said, my transactions for investments are a mess so unless you've kept up, good luck.

sisto

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Re: Passive Income - Race to 10k per year
« Reply #22 on: September 12, 2018, 03:25:42 PM »
@stimepy Yes, transactions were the only way I could get it to work in MINT. I had tried to do a tag so I could use the trends feature, but it would only work for income and not on my tax deferred accounts and that's where majority of my money is.

I decided it was something I wanted to calculate so I went through the effort to do it. Here are my numbers for 2017 and to date for 2018.

2017     $6193.02
2018     $5751.04

Goldy

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Re: Passive Income - Race to 10k per year
« Reply #23 on: September 13, 2018, 05:25:28 AM »
For those of you counting dividends in investment accounts do you count 401k and Roth dividends or just taxable accounts?
« Last Edit: September 13, 2018, 05:55:02 AM by Goldy »

RWD

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Re: Passive Income - Race to 10k per year
« Reply #24 on: September 13, 2018, 06:50:20 AM »
For those of you counting dividends in investment accounts do you count 401k and Roth dividends or just taxable accounts?
All accounts.

Scommm

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Re: Passive Income - Race to 10k per year
« Reply #25 on: September 13, 2018, 07:28:14 AM »
Merrill Edge has a screen just for dividends.

Does Betterment have a area that shows dividends?

Do you know if there are specific ETFs that invest in just dividend paying assets?

stimepy

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Re: Passive Income - Race to 10k per year
« Reply #26 on: September 13, 2018, 09:12:49 AM »
Do you know if there are specific ETFs that invest in just dividend paying assets?

VIG  (Vangaurd Dividend Appreciation)
SCHD (Schwab U.S. Dividend Equity)

I know there are hundreds of others out there but those are the two I have that focus on Dividends.  Just make sure to do some due diligence as some of them (DNI for example) aren't worth your time.

Cezilous

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Re: Passive Income - Race to 10k per year
« Reply #27 on: September 13, 2018, 01:09:53 PM »
                     Pre-Tax      Post-Tax    Total
Sep '17-'18   $122.36      $191.70      $314.06

I hope I'm not forgetting anything.  It seems low, but that's without gains.  That total seems pitiful..however I'm in the home stretch of paying off most debts and so my investments overall will start to have much larger monthly contributions.  I anticipate these numbers rising on a much steeper slope once that ball gets rolling.

RWD

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Re: Passive Income - Race to 10k per year
« Reply #28 on: September 28, 2018, 04:49:37 PM »

Norrie

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Re: Passive Income - Race to 10k per year
« Reply #29 on: September 28, 2018, 08:55:52 PM »
This is rad and made me look at our finances in a completely different way. Still waiting on some numbers to be able to document it, but following along.

Rosy

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Re: Passive Income - Race to 10k per year
« Reply #30 on: September 29, 2018, 10:59:47 AM »
Thanks for starting this thread and reminding us all that $10K passive income a year increased over time to $40K is the same as having 1 Mil in investments at a payout of 4% - right?:)
In the end - all roads lead to Rome:)

Not going to join since I'm only at a pitiful few hundred a year with no hope of reaching $10K, but it has served to remind me that it couldn't hurt to work on improving and working on a couple of neglected projects that could produce passive income - again.
Off to see if Mr. R. is anywhere near $10K - cool thread - it does open your mind, to see new possibilities:)

WhiteTrashCash

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Re: Passive Income - Race to 10k per year
« Reply #31 on: September 29, 2018, 11:08:56 AM »
My passive income for 2018 so far has been $4041.83 so far this year, which isn't bad at all for this stage in my journey. It'll probably be a couple of years before I will reach $10000. Maybe a little less.

Milkm4n

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Re: Passive Income - Race to 10k per year
« Reply #32 on: October 01, 2018, 03:13:34 AM »
September update

                      Rolling 12 months

July 2017 -         1815
July 2018 -         2848
Aug 2018 -         2877 
Sep 2018 -         2846

Moved backward this month as my quarterly dividends shifted from September to October. In saying that, I expect a decent increase in October.

haypug16

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Re: Passive Income - Race to 10k per year
« Reply #33 on: October 01, 2018, 09:49:08 AM »
12 month rolling total
July 2017 to 2018 = $1,852.44
August 2017 to 2018 = $2,332.03
September 2017 to 2018 = $1,909.53 - 422.50 Decrease

Looks like the Aug-Aug big increase was washed out in the Sept to Sept numbers. Still higher than Jul to Jul.

Milkm4n

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Re: Passive Income - Race to 10k per year
« Reply #34 on: October 11, 2018, 09:45:28 PM »
   The great thing with this race is that despite the recent market turmoil, we should still see fairly steady progress. That is, as long as there is no dividend cuts, which I assume would take a much larger correction.

stimepy

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Re: Passive Income - Race to 10k per year
« Reply #35 on: October 30, 2018, 11:01:45 AM »
2017-12-29   Dividends: 837.01  Other: 28.76    Total: 865.77
2018-09-12   Dividends: 878.36  Other: 4256.93* Total: 5135.29    (*1 time big check add that played catch up ~1k )
2018-10-31     Dividends: 1377.42 Other 18477.32*   Total: 19854.74  = Change of 14719.45  (*1 time big check add that played catch up ~1k)

Roll up is by month

Well, hmmm....  So got a rather large check from a source that is in on going.  Not sure if it was a 1 time thing or not.  But even so, kinda crazy to see that much passive income when only last year I was expecting to break the thousand dollar barrier this year....   Granted I expect to break that barrier by quite a bit, but not this much!   
So I guess I am technically graduated?   At least for now.

Good luck all!

Milkm4n

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Re: Passive Income - Race to 10k per year
« Reply #36 on: October 31, 2018, 08:21:10 PM »
October update

                      Rolling 12 months

July 2017 -         1815
July 2018 -         2848
Aug 2018 -         2877 
Sep 2018 -         2846
Oct 2018 -         2955 ($109 increase)

Happy with the increase this month. Still slow progress, but trending in the right direction. The next two months should be fairly flat, win the next good jump happening in December, when quarterly divs pay out. Added 10k to the market this month so optimistic for year end :).

LinneaH

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Re: Passive Income - Race to 10k per year
« Reply #37 on: November 16, 2018, 01:59:01 AM »
I'd like to join.
Currently at $939 rolling 12 months :-) so long way to go. Also, I don't see a lot of additional money for investing in shares at the moment, it will rather be moving from shares to other shares (with higher dividend ratio as this is part of my plan).
But I will be on the lookout ofr 'new money' for this as well.

Fun challenge nonetheless - appreciated!

A fun update; including what I recive in 4 days; I just went over $1 000 in rolling 12 months. I receive dividends almost only in SEK, but recalculate to $ with a (made up by me) fixed rate to be able to compare.

Milkm4n

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Re: Passive Income - Race to 10k per year
« Reply #38 on: December 02, 2018, 06:17:50 AM »
NOVEMBER UPDATE

                      Rolling 12 months

08/01/17         1815
08/01/18         2848
09/01/18         2877 
10/01/18         2846
11/01/18         2955
12/01/18         2972 ($17 increase)

  The progress has been slow, but the overall upward trend continues. I expect better increases in December and January as quarterly, semi annual, and annual divs roll in. Also, I have added lots of new money in the market the past 2 months, which should help as well.

  Lately, I have been adjusting my portfolio so that the majority of my dividends get applied to drips. I am hoping that compounding begins to create tailwinds, as more shares are automatically bought each quarter.
« Last Edit: December 02, 2018, 06:25:01 AM by Milkm4n »

Cezilous

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Re: Passive Income - Race to 10k per year
« Reply #39 on: December 05, 2018, 09:32:16 AM »
                     Pre-Tax      Post-Tax    Total
Sep '17-'18   $122.36      $191.70      $314.06
Jan '18 - now   $145.72     $179.13           $ 324.85

I lost where I saved my original chart so I'm just starting from January instead of November 2017.  Despite leaving out Nov & Dec of 2017, I still have an increase from a few months ago..woohoo!

Raymond Reddington

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Re: Passive Income - Race to 10k per year
« Reply #40 on: December 09, 2018, 12:26:18 AM »
Love this idea. Also gives something positive to focus on in a volatile sideways market that is likely in the late innings of a bull:

Taxable accounts
2009: 153.65
2010: 160.93
2011: 179.86
2012: 265.17
2013: 223.39
2014: 330.97
2015: 602.24
2016: 810.86
2017: 1047.46
2018 (YTD): 1557.54

simplyjay

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Re: Passive Income - Race to 10k per year
« Reply #41 on: December 09, 2018, 06:07:43 PM »
i like your screen name hah, besides that i want to start investing in a taxable account using index funds from betterment or vanguard vtsmx. when does interest get added to the principle balance in the account? besides the earnings of dividends and such i can't figure out for the life of me how it compounds. if its added daily, monthly, yearly..