2017 Goal Setting
2016 was an amazing year! The year was full of triumph and failure, coupled with tons of learning experiences. I am now ready to set the scene for a great 2017, check out my goals that will hopefully keep me on track!
Roth IRA – Fully Fund $5,500
I have been fully funding my Roth IRA for several years now, so this goal should be relatively easy, but it is an important one. Always good to start off with the small ones.
Brokerage Account – Contribute $10,000 in new capital
This works out to be around $833 a month. I am hoping that this turns out to be the low end of my contributions, but I am also going to be looking for purchase another house in 2017 so that will have a big impact on the amount of free cash flow I’ll have available.
If I am able to complete this goal and reasonably invest at around a 3.25% yield, my forward dividend income will hopefully cross over the $800 or so threshold. If I’m able to scrap together some more funds I would love to break the $1,000 mark in 2017. Time will tell.
All Purchases >$2,000
Between my Brokerage Account, 401k and Roth IRA I should have plenty of capital to invest in 2017. With this fact, I want to set the goal of not making any purchases less than $2,000. While this won’t be a hard line number the intention is to avoid smaller purchases that lead to higher transaction fees throughout the year.
I wrote about my 2016 investment fees in an article recently. I was happy with my fees for the year, they mostly stayed in check and the ratio was at a reasonable level for the size of my portfolios. Of course, we can always improve in this area. I am hoping that my raising my purchase levels will reduce my fees over the year, both in total dollars as well at % ratio.
Total Forward 12-Month Dividend Income: $3,600
As of 12/31/2016, my forward 12-month dividend income sits at $2,645.94, this includes my projections for dividend raises throughout the year. This leaves me with about $1,000 to go on my goal.
How I plan to achieve this increase in dividend income:
Roth IRA: $5,500 in contributions, $1,500 in dividends received to invest. This totals $7,000 in capital to invest, give or take. At 3.25%, this will add approximately $228 to my dividend income.
Rollover IRA: I have ~$1,100 in cash right now in this account and expect to earn $700 in dividends in 2017. To stick to my $2,000 purchase goal below, this means I should be able to make a purchase by year end to add about $61 to my dividend income using a 3.25% dividend yield on my purchase.
Brokerage Account: I hope to contribute $10,000 to my brokerage account throughout 2017, given my new purchase rule, this will mean 5 stock purchases in the account for 2017. At a 3.25% yield, this will add $325 to my 12-month income in the account. I am hoping I can contribute more, but this is hopefully a conservative take for this account.
401k: I am set to currently contribute $5,800 to my 401k in 2017, this will be combined with the profit sharing by my employer, which I have been told will be around $5,200. This $11,000, will add about $358 at my assumed 3.25% yield. This employer profit sharing could easily change on me, so this could set me back, if it isn’t what I’m hoping it will be, but hopefully it is!
Summary: Given my above assumptions, I will be able to add $972 to my forward 12-month income in 2017. So close to $1,000! Hopefully I can surpass this number.
2016 was a fun year. I finally got the chance to get this blog started up with the purpose of sharing my experiences and investment thoughts as well as trying to hold myself accountable with my investing goals. The dividend investing community is vast and a great resource of all sorts of different strategies and personalities, I really have enjoyed slowly joining it.
Post at least every two weeks
I realized in my 2016 goal review that I just simply get busy and focus on this blog finds the back burner. This will always be more of a hobby for me than a job. For 2017 I am hoping that I can at least post something every two weeks. This is a much more relaxed goal than my two posts a week goal in 2016. I want to keep the blog active and my writing mind active, I think that posting every two weeks will accomplish this.
Complete my MBA
I am hoping that this is just a formality at this point. I have been pursuing my MBA for a little over two years now. I have one final class left and should hopefully be prepared to graduate in the Spring.
My formal education journey has been long the last 10+ years with my undergraduate, graduate and CPA licensing. I am very much looking forward to wrapping it all up. I love to learn, so this may not be the end of my educational pursuits, but a break, financially and emotionally will be very nice to achieve.
Purchase a Home
As I’ve briefly stated, I recently moved out of my old home and prepped it to rent out. As a result, I moved in with a brother of mine for the time being. The situation is great for now, but I am definitely looking to find my own home at some point in 2017. I will not be rushing this goal, I will buy a place when it feels right and the price works for me. However, I am definitely hoping that all of this takes place in 2017.
I am truly looking forward to getting started on these goals in 2017. I have been browsing many sites the last week or so in the dividend investing community and it provided some great motivation when setting my goals.
Best of luck to everyone!!!!