What A Year!

Wow. 2013 is almost behind us, and I almost wish it wasn’t. I secretly want 2013 to last forever. It’s been a truly amazing 52 weeks. I couldn’t ask for more.

I wanted to review a little of what transpired over the last year for me, and I’m also going to include the first-ever “greatest hits” of Dividend Mantra – the five most popular posts over the last year as voted by you the readers (via pageviews).

I think the biggest and most surprising success in 2013 was the exposure this blog received both in the mainstream media and throughout the investing community. Of course, that all wouldn’t have happened without you guys behind me supporting my journey to financial independence. I truly appreciate it! I think some of the exposure actually started at the end of last year after Mr. Money Mustache was kind enough to allow me to guest post over at his blog and share the concept of dividend growth investing with his readers.

Early in 2013, my story was then first featured in USA Today and shortly thereafter I was interviewed by the Today Show. If that wasn’t enough, I later was included in a piece on financial independence over at Yahoo!. Although the mainstream media attention was appreciated because it allowed me to expose my message to a broader audience, I think my favorite interview was done by Matt over at Dividend Monk as it allowed me to say exactly what it is I’m after, how I’m going to get there and why it matters.

Of course, with all that attention you’re going to face some detractors. I certainly found myself with plenty of curiously spiteful email and a slate of posts within the blogosphere both positive and negative. There was the post over at Darwin’s Money that basically called me a math-challenged hippie, but on the flip side I enjoyed the positive spin over at Dave Ramsey’s blog as well as the interview I was featured in over at MoneyPlan SOS.

But fame is fleeting and my 15 minutes in the limelight is over now. However, what’s far from over is my journey to financial freedom or my thirst to acquire it. As well, you’ll see me continue to share that thirst and desire on a regular basis here. And while I appreciate the opportunity to spread my message, I appreciate the inspiration I find in both my success and the success of you readers on a daily basis even more.

And speaking of success 2013 was wonderful in that regard. I’m going to let a secret out – I exceeded all of my goals that I set out for myself at the beginning of the year, and I’ll be reviewing each goal separately and in-depth in the coming days. The Freedom Fund is currently kicking some serious ass, with a value north of $145,000 as of today – well over the ~$88k I started the year with. And although the value of the Fund is nice to look at on paper, the dividend income is really where it’s at. The passive dividend income my portfolio generates is what will ultimately determine my ability to be financially free, as the dividend income will feed my wallet on a regular basis to satisfy my liabilities. And the dividend income is going to come pretty close to $4,000 throughout 2013. An amazing feat, in my opinion, as I started from $0 at the beginning of 2010. $4,000 ends up being almost $11 per day 365 days per year. That may not sound like much until you realize that you’re getting paid on weekends, holidays and even while you sleep. Not too shabby.

But not everything went fantastic this year. Kraig and I from Create My Independence started a podcast titled: The Chasing Financial Freedom Podcast. Unfortunately, I just didn’t have the time necessary to continue this project. Kraig has decided to continue the CFF Podcast without me, but I hope to be a guest from time to time. I’ve also had to unfortunately increase my expenses as the year has progressed. I now have a car, although I landed perhaps the greatest car deal of all time. I also have health insurance now due to both the individual mandate as part of the Affordable Care Act as well as the fact that I now have substantial assets to protect. Such is life, but these are really first world problems.

And finally, as promised, I’m going to highlight the five most popular articles from 2013:

Why I Hold 100% Of My Equity Investments In A Taxable Account
This was not only the most popular article of 2013, but it’s generated the most pageviews of any article I’ve written to date. Although it’s a bit controversial, I don’t really see it that way. And I actually plan to revisit this subject at some point in the future as it came to my attention later after the post went live that the case for a taxable account is actually a bit stronger as I didn’t factor in a personal exemption or standard deduction. Factoring that in, the amount one can earn from dividends before having to answer to the taxman is closer to $46k for a single earner in 2013.

Why I Vastly Prefer Dividend Growth Investing To Index Investing
Another controversial article. I promise, that’s not my strategy. However, again I don’t really see my stance as particularly cutting-edge or different. I’ve been open in my opinion that I believe index investing is the best strategy for most retail investors due to the time demands inherent in dividend growth investing. But I happen to enjoy researching individual companies, reading through financial statements and managing a large portfolio. The time constraints don’t really bother me. Call me weird (or boring). Furthermore, if you’re interested in dividend growth investing as a strategy, you’ll find that you can invest in the same companies that index funds do but without the management fees. So I get paid (by paying myself the management fees) to do something I enjoy anyway? I call that a win-win.

Scottrade’s FRIP And Diversifying Brokerage Firms
I wrote this article mid-year to share the revolutionary service Scottrade rolled out. Called FRIP – for ‘Flexible Reinvestment Program’ – it allows investors to reinvest dividends in whatever securities he or she feels fit to without any commission fees. You want to reinvest the $100 dividend from The Coca-Cola Company (KO) into Philip Morris International Inc. (PM) because you feel the latter offers better value? Well, you can do with FRIP because it doesn’t require you to reinvest the dividend back into the security that paid it out in the first place. However, it should be noted that the program doesn’t allow for partial share purchases. And on the brokerage front I still haven’t diversified, but that is coming.

Dividend Income Update – September 2013
This post was one of my monthly dividend income updates, but this one stands out because September’s haul still stands as a record for me. $640 in dividends. For one month. How can you not enjoy dividend growth investing?

DGI Case Study – $5K To $100K In Three Years
Lastly, my favorite post of 2013. This was my manifesto, showing how I started from nothing three years ago and crossed the six-figure mark early this year. Of course, a strong stock market has certainly provided a lot of wind to my sails but I wouldn’t be where I am today if I couldn’t persevere or remain consistent. A strong stock market wouldn’t mean a thing to me if I didn’t decide to change my life a few years back. Don’t make excuses. Make resolutions. And then stick to them.

Full Disclosure: Long PM, KO

How about you? Did you have a great year? 

Thanks for reading.

Photo Credit: Mr Lightman/FreeDigitalPhotos.net

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51 Comments

  1. You are rocking the portfolio growth and increasing the dividend income. The portfolio balance is second to the dividend income as dividend income will feed you one day and pay your expenses. Looking forward to more great posts here in 2014!!

  2. You put out some great material in 2013 Jason. I’m sure you’ll keep it up in 2014, too. I really enjoyed those videos you did with Kraig. Here’s to big things for all of us in 2014.

    I hope you have not frozen up there…..The low is 10 degrees tonight in Kansas, but our visit is going well.
    -Bryan

  3. You’ve had a heck of a year Jason, and I would imagine that 2014 will be transformative for you as you continue to pursue your dreams and goals. The exposure gained in 2013 should continue to result in additional income and opportunities. Keep it up this next year, as I’m looking forward to following along.

  4. That is one heck of a good year. It is so inspiring following your story! 2013 was a great year for me too. The markets soared ever higher…plus I found your blog! I look forward to another year of following your amazing progress 🙂

  5. Tip of the hat to you, my friend. 2013 was indeed a great year. Now, if I may suggest a 2014 goal: Take a week or two off work and come visit Thailand. Consider it a trial run. You can practice living on the cheap, unwind, take some great pictures, and write a full blog post on it when you’re done! You’d have your room and board covered for as long as you’re here.

    Cheers!

  6. Congrats on another awesome year! I’ve been around long enough to watch you go 3/3 on your yearly dividend goals. Fantastic! This blog is truly inspirational to your readers.

    I just read that Darwin’s Money post and cringed all the way through it. At one point he claims a single person cannot be happy because they aren’t married. Wow, just wow. Anyways don’t let mentally challenged bloggers get you hot and bothered. A lot of the confusion stems from the word “retired.”

    Looking forward to Q1 next year. Quite a few dividend increases should be heading our way!

  7. Thanks for providing a highly readable, informative blog. I’ve used many ideas from you since rolling my IRA over due to a job change last spring. While you don’t pretend to be an “expert,” I’ve found your information to be right on. (I’m a CPA, with over 30 years in tax practice, except for a 5 year hiatus as a stock broker). Keep up the good work – I’m sure I’ll be reading you as long as you feel like writing.

  8. Thanks for all the wondering posts Mr.Mantra. You really are bettering yourself and setting an example for all of us who seek financial independence. Thanks for your insights into the companies you post and for your buys. Cheers, good luck, take care and Let’s hope for another great year in 2014…

  9. Jason

    I totally agree, 2013, what a year.

    My portfolio is now over £125k, I earned over £4k in dividends, I do hope 2014 is half as good.

    On top of that I found your blog (along with some other great ones) and have been inspired to start my own blog to try and get the same message out but using UK examples.

    Hope you have a great 2014, who knows you may reach your goal long before 40!

    Financial Independence UK

  10. Hi Jason,

    great year for you. My portfolio “only” growth from 40.800 to 56.800 € this year. But I coudn’t save as much as you, because half of the year I was in apprenticeship (I’m 23). Also I have choose you as my benchmark for next year. It will be exciting to see if your dividend groth investing or my primery groth investing will make the better results. Indeed I look primery for groth I also very happy about 800 € dividends this year.

    Greetings from Germany
    Jonas

  11. Jason you have had quite the year, congratulations!

    It was only last year that I decided to get serious about our life and trying to make it have some sort of a plan. Your blog has been very inspirational in helping us with that. Like you the goals we set were all blown away this year. It’s good to be realistic with goals.

    I’m really looking forward to what 2014 brings you, I’m sure it will be much more success!

    Keep up the great work!
    BJ

  12. DM, thanks for your blogging effort in 2013. You have been a great source of inspiration and motivation for further work and effort to go for my dreams (and my family) to reach FI as quickly as possible. Mostly those posts showing your buys and results were a great inspiration. Many times when reading it I was kicking my a** pushing myself more into saving and paying off my debt to free up money for more investing. I hope the next year 2014 will be even better than the old one.
    Thank you.
    Martin

  13. Congrats on a record breaking year on all fronts! While I’m blown away by the increases in my portfolio values I understand that this party will not last. But then again, given a long term horizon even if the market cools off or crashes in 2014 we’ll all be looking at this as an opportunity, so it’s all good!

  14. 2013 was great for a lot of us and like you I don’t really want to see it end. Of course 2014 should hopefully be even better as the markets surely won’t continue on their neverending march higher and allow us to get some better opportunities to invest our capital. Plus we all have a larger base to start off with which is even better. Congrats on a great 2013 and here’s to an even better 2014!

  15. Pursuits,

    Thanks for the ongoing support. I’m looking forward to writing some great posts in 2014. I can only hope that 2014 is half as good to me as 2013 was. 🙂

    May you continue to prosper as well!

    Best regards.

  16. Bryan,

    I’m back in sunny Florida, but I’m already homesick. I miss my family more and more as time goes on. I’m almost five years deep into my Florida residency and it’s not getting any easier. I hope you’re enjoying your holiday in Kansas!

    Thanks for the kind words. I also hope big things are in store for us in the coming year.

    Best wishes.

  17. w2r,

    Thanks! It was a heck of a year, but I’m excited to get 2014 started and see what’s behind the curtain.

    I hope 2014 treats you very well, and I wish you nothing but the best with the continued blogging and inspiration!

    Take care.

  18. FFdividend,

    Thanks! It’s tough to say goodbye to 2013, that’s for sure. But I’m also anxious to see what 2014 has in store for us. 🙂

    Good luck to you in the coming year as well!

    Best wishes.

  19. Divi Me Up,

    I like the name. I’m hoping to get divi’d up quite a bit in 2014!

    Glad to hear you also had a great year. Congrats on your recent engagement. May we both continue to prosper and have another outstanding year.

    Cheers!

  20. Tyler,

    That’s a pretty enticing invitation! What part of Thailand are you in? I seem to recall you talking about Bangkok at one point.

    I often think about living in Thailand, or another cheap country once I’m financially independent. If you don’t mind me asking, does being far away from family and friends factor in to your journey at all? One problem for me in terms of the idea of living as an expat would be being so far away from loved ones. Even living in Florida (only 1,200 miles away from family) has been trying, and it’s getting more difficult as time wears on. I would imagine this difficulty is increased exponentially once overseas, but only if you’re close to family.

    At any rate, I appreciate the offer. I may take you up on it, but my girlfriend would likely nix the idea. I do have two weeks of vacation planned in February, but I’m just taking the time/pay rather than going anywhere. I’m a bit burned out, and looking forward to the time away from work.

    Best wishes!

  21. CI,

    Indeed, we should have a very nice Q1 2014. Looking forward to some nice dividend increases early in the year.

    Thanks for the kind words. I appreciate your support. Likewise, your success has been inspirational to me and many others. The fact that you’re accomplishing so much on a limited salary is awesome.

    Yeah, the Darwin’s Money post was…umm…interesting. The math can certainly be argued, but his tone regarding personal decisions on subject matter like marriage and family that differ from his own was disappointing. I think that’s where I was most bothered.

    I hope 2014 treats us very well. Best of luck in the coming year.

    Take care.

  22. Chris,

    Glad you enjoy the blog and find it informative. 🙂

    Thanks for the validation. I’m certainly no expert or professional, so it’s good to hear from those that are and generally agree with some of the concepts I explore here.

    I hope you stay in touch.

    Best wishes.

  23. Tyler T,

    Thanks for following along. I appreciate your readership. The posts would mean nothing if not for a wonderful audience!

    I hope for another great year for both of us. 🙂

    Best regards.

  24. FI UK,

    Congratulations on your success. It sounds like you also had a great year!

    Glad to hear you have found some inspiration here. That’s why I write. And I hope you continue blogging and find as much enjoyment from it as I do. 🙂

    Keep up the great work!

    Take care.

  25. Jonas,

    Thanks for stopping by from Germany.

    Don’t worry about comparing yourself to me. You’re still very young. I only wish I would have been as smart as you at 23. Instead, I was busy wasting an inheritance and working my way closer to broke. You’ll be far, far ahead of where I’m at when you reach my age. Keep it up!

    Best wishes.

  26. BJ,

    Glad to hear you blew away your goals for 2013! I’ve been incredibly fortunate thus far, and I can only hope I can remain so for the foreseeable future.

    Congratulations on changing your life and taking a more active approach in your life and finances. Your future self will thank you one day. Trust me! 🙂

    Take care.

  27. Martin,

    Glad you were able to stop by and find inspiration here in the blog and my progress. I think the community of dividend growth investors and pursuers of FI is really wonderful and supportive of one another. There are a number of us now that are all inspiring each other and a small army of people out there to change lives for the better. It’s just awesome to be part of the community. 🙂

    Best of luck in 2014.

    Cheers!

  28. insourcelife,

    I would agree that a cooling or crash of some sort in the market would be an opportunity. I don’t have a lot of capital right now after my recent car purchase, but I’d love to be able to put capital to work at advantageous prices throughout 2014. We’ll see what we get!

    Best regards.

  29. Pursuit,

    You had a great year as well. Your net worth increased at a prodigious rate. Congrats on that. Your income is wonderful and you haven’t allowed lifestyle inflation to destroy your progress. Great stuff!

    I’m also hoping for cheaper prices and better values. I don’t have as much capital to work with as I did just a few months ago, so any break the market can give me would be most appreciated! 🙂

    Good luck to you in the coming year!

    Best wishes.

  30. You did a great deal for the community in 2013. You’ve done a lot to promote a great investing approach and a great lifestyle. You have inspired a very large number of people to open their eyes and see that there is an alternative approach to the usual study-work-die path. Thank you putting together such a great blog and being so open about your goals and finances. I very much look forward to what’s in store for 2014, and, of course, I will share with you my own successes and struggles.

    Cheers!

  31. I ask this question all the time (well a few time a year) and nobody that Ive ask knows.So I will ask you “why does the stock market do better under the Democrates than Republicans it realy does Its not a polical question Im not asking you who is better just why does it It is a fact look it up thanks Quentin

  32. Spoonman,

    Thanks a lot. That’s very kind of you. I’m just glad to be in the position to educate, inspire and entertain. It also feels good to give back to a community that gives me so much support every single day. The usual study-work-die path is certainly not for me, and obviously not for you either. The wonderful thing is that there’s another way, and opening your eyes to it just requires an open mind.

    I’m looking forward to seeing you guys progress towards financial independence and all of the freedom that comes with it. I’m sure you’re going to have some great adventures. 🙂

    Best regards!

  33. Quentin,

    I’ve read the same – the market’s performance is better when a Democrat is in the White House. However, I have no idea why this is. Furthermore, I wouldn’t really worry about it. I don’t really pay much attention to the broader stock market trends or much macroeconomic news. I just look at the fundamentals of individual companies and try to purchase shares when capital is available, the value makes sense and my portfolio has room.

    Cheers!

  34. Yes, I’m in Bangkok and yes, being far from family can be very difficult at times. Fortunately for my own sanity, I have a wife and kids here with me, which eases the homesickness considerably. But plane tickets between the US and Thailand are not cheap for us or our US-based family members, who we are close to. I’m here working on a contract of limited duration, so knowing that within a certain number of years we will be moving back to the states is also helpful on the psychological front. If this were an open ended assignment, I think it would be harder.
    The cost of living here is definitely low. Since I’m here working full-time for a US-based company, I realize that I’m not living the same type of life as a typical retired ex-pat, but I’ve been out in the local economy enough to know that a person can eat very well and live in quality housing for a fraction of the price of the states. If I were a 40-year-old version of you, I’d probably consider budgeting no more than a year to living here at first. Then, if you like it, you can extend, but if you decide you’d rather live elsewhere, it’s easier to move because you’re not irreversibly committed.
    Anyways, if your circumstances ever change and you feel like coming out, we’d be happy to put you up. Your blog has been a great source of inspiration to us and our dividend investing endeavors. It would be the least we could do.

  35. Jason,
    Great year of investing. Everyone has their own style and what works best for them. I invest in growth stocks with some dividend investing that has resulted in great returns, however in a bear market my portfolio drops faster. I look for great companies and hold for the long term, a lot of these don’t pay a dividend.

  36. DM,

    I stumbled upon your website a few months ago and it has greatly changed my investment thinking. I have been trying to accumulate savings and hoping they would appreciate to some unknown number. Then at some point I could start selling off assets and hope the amount would be enough to cover an unknown retirement period.

    That is like buying a house today, leaving it unrented and hoping in 20 years it will quadruple in value and then selling it off piece by piece over the next twenty years. Why not invest in solid dividend companies today, reinvest their dividends, watch them grow, and not worry about liquidating assets when you retire!

    I look forward to next year’s posts!

  37. Hey Mantra,

    I have enjoyed your blog, your doing great things with sharing your FI journey. I look forward to using some of the dividend investing strategies in 2014. I feel a 50/50 break down of tax deffered and taxable will work for my FI goals. Keep up the great content bud.

  38. The year 2013 was great!
    I am very glad to have found your blog!
    In 2013, you are the king with your portfolio!!
    Keep going, Jason!

    Best regards
    D-S

  39. Thanks I’ll be checking in from time to time as always!

    I wouldn’t call my salary limiting anymore however. I’ll make roughly $3,500 per month after taxes starting with the next pay check. That’s equivalent to about 55,000 per year pre tax… Now two years ago when I started blogging my pay was indeed crappy. It was hard to scrounge up savings at that point in time, but I made due anyways. Cheers!

  40. CI,

    Oh, wow. I didn’t know you were making quite that much now. No offense meant or anything. I don’t think you’ve published a budget in a while so I guess I just thought maybe you were making a little less than that. I would agree that making that much is not particularly limiting, especially if you have any savings skills at all.

    Best wishes!

  41. Charles,

    Hey, nothing wrong with your strategy at all. If it works for you and your individual goals, then that’s all that matters!

    I hope 2014 affords you continued success.

    Best wishes.

  42. D-S,

    I’m glad you found my blog as well, but I’m even more glad that you have started your own. I wish you nothing but the best with your journey and your writing. 🙂

    Cheers!

  43. The Dividend Pipeline,

    I like your analogy of buying a house and letting it sit empty. Although many index funds do pay out some sort of dividend, I see what you mean and completely agree. To me, it makes no sense to sell off assets that are producing income. In good times, the 4% SWR might look like an easy way to go…but watch the market drop 20% or more and all of the sudden drawing down assets looks downright scary.

    Thanks for stopping by! I hope you stay in touch. 🙂

    Best regards.

  44. EL,

    Sounds like a reasonable strategy to split up your accounts 50/50 between taxable and tax-advantaged. Nothing wrong with that, and I’ve been open in the fact that I recommend most people tax maximum advantage of traditional retirement accounts like 401(k)s and IRAs.

    Best of luck in 2014. I appreciate the support! 🙂

    Best wishes.

  45. I have really enjoyed following you, as I have found your site later this year (2013). At 37 I finally crossed the $100k mark in my combined accounts! All of it is in Roth 403(b) and regular 403(b) accounts. Because of your dedication and willingness to share your pursuits you have encouraged my to live more frugally (I could spend less) and pursue additional investments for dividend growth. Here’s to a great 2014!

    Blessings,
    David P.

  46. Great job, DM, been reading your blog for years, don’t always agree, but hard to argue with your awesome results, keep it up…I really hope and pray more people start realizing how costly following the herd in lifestyle and investment choices can be to their futures

  47. David P.,

    Congratulations on passing the six-figure mark. That’s a huge milestone. You’re well on your way to building real wealth.

    I’m glad that this blog serves as some inspiration to encourage you to pursue a better life. May 2014 serve us both incredibly well!

    Take care.

  48. Anonymous,

    Thanks for the ongoing support and readership. I suspect there are many people out there that don’t always agree with my methods or ideas, but I’m only here to share and inspire. If only just some of the things I do catch on and allow some to improve their life then I consider that a big win.

    Cheers!

  49. Mantra,

    Sorry for not getting here sooner, as I have been at work solid over the holidays. Congratulations on your over-the-top achievements in 2013! You have now surpassed the Ninja in badassity… 😉

    Keep up the good work.Thanx to blogs like ours, people are seeing the options outside of the financial industry, and learning they can invest for themselves – regardless of the approach.

    Cheers
    Avrom

  50. Avrom,

    I’m not quite sure I’ve passed you in badassity…you’re still pretty high on the list! 🙂

    Thanks for your ongoing support. You were one of the guys to stop by and offer me encouragement right from the get go, and I really appreciate that. Your tips have been incredibly useful and I’ve done the best I can implementing many of them.

    Keep up the great work on your end too. I think that while our journeys are inspirational all by themselves, it’s the fact that we’re showing everyday people that it’s possible to DIY invest and avoid the insane fees. That’s an accomplishment I can definitely be proud of.

    I hope we both have a fantastic 2014!

    Best regards.

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