Under the “Intent” page you can find what my main purpose is in pursuing investing. Although it gives an accurate account of what I want to achieve, it paints a pretty broad theme. Today I’m going to narrow it down a bit by focusing on what I want to accomplish in 2012 and what steps need to be taken to reach the main goal. It is in the series of steps that we fulfill our journey.
Last year I ended up with just at 1213.00 in dividends. As of right now, with my current investments, my brokerage accounts estimated yearly dividend is 2800.00. I’m fairly happy with more than doubling my divi income this year, but I think I can do better. I’m going to shoot for 5000.00 in dividend income by 12/31/2012. I plan on doing this by adding to my current positions and adding some new positions as well. Right now I have a fairly concentrated portfolio. I’m ok with this and will discuss my thoughts on diversification in a later post. Finding value is my primary concern with diversification being secondary.
Keep expenses under 20k. This amount includes everything which means taxes, living expenses, travel, every dime that goes out. I include taxes as I have a favorable tax situation by working overseas, plus I like looking at total numbers. I track my expenses using both Quicken and excel and can tell you every amount that has come in and gone out. Keeping all my expenses under 20k will be a stretch goal, but I think it is something that is worth shooting for.
To have a 100,000 balance in the brokerage account. This amount may seem arbitrary at first but it actually has a purpose. First, the six figure amount has a psychological appeal that makes me want to work hard to attain it. Superficial I know, but hey it keeps me motivated. Second, it is this amount with an anticipated five percent yield that I get my 5000.00 in dividends I listed above. Not so arbitrary after all eh? With just over 50,000 now between stocks and cash I should be able to pull this one off if all goes well this year.
If I can achieve these goals 2012 will be a great year!
Do you have a stretch goal you’re targeting this year? Leave me a comment and let me know.