2015 Dividends

[l2jperry]

Total Dividends for 2015 = $3,578.00.

$3,578.00 divided by 52 weeks = $68.80 per week divided by 40 hours per week = $1.72 per hour!

My little dollars are pumping out $1.72 per hour (and I'm so nice I only make them work 40 hrs a week :P). It's a ways to go until FIRE, but I just turned 25 so I'm happy with the start. Hoping for $3.50 per hour for 2016.

Long time reader, but a new forum poster - as I continue the journey to FIRE I thought it best to start interacting more with like minded people. I know of no one in real life with the same mindset as me, so it will be nice to converse with you all!

[beltim]

Welcome!

I enjoy the sort of calculation you did here, and you might enjoy a similar type of calculation with a long thread here: http://forum.mrmoneymustache.com/welcome-to-the-forum/what-are-your-soldiers-%28dollars%29-paid-per-hour/

[l2jperry]

Wow - thanks for the link, that is essentially exactly how I was calculating it :). You know you're in the right place with things you thought you were coming up with on your own has already come up years ago here.

[StockBeard]

3578 a year in dividends at 25 is an awesome start. Congrats :)

[l2jperry]

Thanks :). I just found out about Qualified Dividends on here the other day which I think are just totally awesome. Unfortunately most of my dividends were not qualified - I will be moving into that direction and will start buying VTI and VXUS for the qualified dividends from now on :). I think it's so cool that you can basically make roughly 13k to put into my Simple IRA, 5.5K to put into a traditional IRA, and then another 38 K in qualified dividends and pay 0 in income tax. The more I read the more obvious it becomes that making a lot of money just doesn't make sense once you have enough saved up.

[use2betrix]

Thanks :). I just found out about Qualified Dividends on here the other day which I think are just totally awesome. Unfortunately most of my dividends were not qualified - I will be moving into that direction and will start buying VTI and VXUS for the qualified dividends from now on :). I think it's so cool that you can basically make roughly 13k to put into my Simple IRA, 5.5K to put into a traditional IRA, and then another 38 K in qualified dividends and pay 0 in income tax. The more I read the more obvious it becomes that making a lot of money just doesn't make sense once you have enough saved up.

Do you have a link? I don't understand the differences in dividends. Do different funds pay out different types of dividends?

[l2jperry]

I just googled it. Basically Qualified Dividends are taxed at 0% if you are in the 10% or 15% percent tax bracket... so basically once you hit FIRE (depending on what your number is I suppose - but most people's number will be small enough that they will be within the 15% tax bracket I think.) Even if you're not though, at that point Qualified Dividends get taxed at 15% which is much less than the income tax. There are different rules for what is a qualified dividend.