Freedom Fund Update – January 2015

piggyfundWell, the time has come to update the Freedom Fund once again as we start another month. The Freedom Fund is my portfolio, and I think it’s aptly named. My portfolio is my way to freedom; freedom from a job I don’t desire to purchase goods I don’t need to impress neighbors I don’t care about. This journey is all about freedom and flexibility. One day, the dividend income this portfolio generates will fully cover my expenses and my time will be completely my own. What could you possibly want to own more than your time?

I feel extremely fortunate and thankful that I’m able to post these updates every single month which shows the power of monthly contributions to investments because of the high savings rate I maintain. It shows how a relatively large sum of money can be built through the power of time, patience and perseverance.

It’s important to keep in mind that while updating the overall value of my portfolio is important for historical reference and for purposes of keeping track of total return, my main focus is on the rising dividend income stream the Fund provides.

And with that, 2014 is behind us. It was a wild year for me in many ways, not the least of which was the manner in which the Freedom Fund grew.Β From the very beginning of 2014 until the very last day, the portfolio increased by more than $36,000. That’s a middle-class salary right there, which is absolutely incredible. I can tell you that it wasn’t until 2007 that I was able to even earn that much money from working an entire year. Glad that my money is now unleashed, working for me instead!

December was a particularly busy month, as previously discussed. I started the month off by initiating a position in Walt Disney Co. (DIS), which is a company that I’m particularly enthusiastic about over the long term. The low yield is kind of a bummer, but this company is firing on all cylinders. I really like this investment.

That was actually going to be it for the month. I hadn’t planned on doing anything else. But opportunities came knocking, so I opened the door ever so slightly. Energy was particularly volatile toward the middle of the month, which presented a quandary for me. I’m loathe to go too crazy on energy stocks, as I’m already extremely overweight in that sector. Furthermore, there’s a chance that oil could remain low for a protracted period, which means bigger opportunities could materialize down the road. Nonetheless, I decided to deploy a little capital by adding to my small position in ONEOK, Inc. (OKE) at what I thought was a compelling value.

Unfortunately, that wasn’t it. I decided to sell out of my stakeΒ in American Realty Capital Properties Inc. (ARCP) due to a change in the fundamentals that became too large to ignore. My position went from an investment to a speculation, and I simply decided to acknowledge that I’m no speculator. I’ve had solid success as an investor over the last five years, butΒ I have no desire to speculate. Again, that’s no call on the company’s fate, but rather a call on the limit to my risk tolerance.

I thereafter used the capital from the ARCP sale to add to average down on my investment in BHP Billiton PLC (BBL) one last time. I also added to my position in Unilever PLC (UL) to even it out at 100 shares.

I feel really confident about these moves when looking at them with a long-term perspective. Disney parks will likely remain vacation destinations for families all around the world for decades to come. Meanwhile, they have what will likely be phenomenal movies coming out this year, including Avengers: Age of Ultron and Star Wars: The Force Awakens. And their core business, including the ESPN network, is incredible.

Meanwhile, ONEOK should do well for 2015 and many years to come. A large part of the business is fee-based, which means they’re less susceptible to major swings in commodity pricing. Their pipeline network cannot easily be replicated by a competitor, and they’re well-placed across domestic energy plays.

BHP Billiton is unpopular right now. But that’s generally the precise time you want to pick up shares in a high-quality company, assuming the fundamentals remain solid. Iron ore and oil have both seen their prices crater lately, but I guess I just can’t foresee a world where both of these commodities aren’t in-demand and extremely valuable a decade from now and beyond.

And Unilever sports some of the world’s greatest brands across food, beverages, personal care products, and home care products. I see the odds of this changing as quite low. People will very likely continue to buy soap, ice cream, butter, and shampoo no matter what’s going in with the economy.

The current market value of the Freedom Fund stands at $183,298.78, which is a 0.4% decrease from last month’s published value of $184,197.69. So the portfolio backed off its all-time high a bit, which isn’t totally surprising. What perhaps is surprising is the fact that most of my major positions performed so terribly over the course of December. My portfolio had a rather poor month due to the fact that companies like Johnson & Johnson (JNJ), PepsiCo, Inc. (PEP), and Philip Morris International Inc. (PM) all saw their common stock drop in value rather substantially over the course of December. Of course, this is just one month out of perhaps 800 or soΒ that I’ll be exposed to the stock market, and discounts the fact that JNJ and PEP both had aΒ great year in regards to company and stock performance. Furthermore, stock prices have very littleΒ to do with my ability to live off of my dividend income and claim financial independence. Thus, this is all rather inconsequential.

[show-rjqc id=”17″]

The chart looks great, no doubt about it. I’m a little torn, however. On one hand, it’ll be exciting to see the portfolio cross over $200,000. I know it doesn’t really matter in regards to my goals, but it’s just a nice psychological barrier to cross. On the other hand, I’m hopeful the stock market corrects rather considerably over the course of 2015, which would allow my current capital to go much further by being able to buy cheaper stocks with higher yields. That would matter in regards to my goals.

As a special note, I expect the whole year of 2015 to be quieter for me than 2014 was in terms of how much capital I invest in stocks. That’s because I’ll be facing two headwinds: lower overall gross income and a higher tax bill. This is due to my decision to pursue writing full-time. Now, that’s a decision I’d make 1,000 times out of 1,000 chances. However, there are consequences and trade-offs (Aren’t there always?). First, I’m not sure if I’ll ever be able to exceed what I was making in the auto industry. Second, self-employment income comes with the joy of 15.3% Social Security and Medicare (FICA) taxes. Ouch! I was able to be a bit aggressive in the second half of 2014 due to the fact that my quarterly estimated taxes schedule was set up at the beginning of the year, before I was earning as much self-employment income. So the payments wereΒ lower than what I really owed as the year progressed; however, this benefit of artificially high cash flow will be gone throughout 2015. I do expect to be able to invest at least $1,200 per month, though, which was my original goal when I first started down this path back in early 2010. So we’ll see how it goes. I’m excited either way!

The Fund now has positions in 51 companies. This is unchanged since last month, since I both initiated a new position and sold out of one completely during December.

These updates are mainly designed to show the increase or decrease in the value of the underlying equities I’m invested in, but the main purpose of investing in dividend growth stocks is for the rising stream of dividends over time. So, with that said I don’t put too much emphasis on these monthly updates on the value of my portfolio. I think it is a good idea, however, to keep track of the rising (or falling) value of one’s securities and be aware of where they are in terms of the marketplace and whether or not certain stocks are attractively priced. It proves to be a useful exercise, for me at least, to update the values monthly. It gives me fresh perspective on which equities are performing well and which aren’t, and from there I can make educated decisions (based on further due diligence) on which stocks I’d like to add fresh capital to (while considering portfolio weight as well).

Full Disclosure: Long DIS, OKE, BBL, UL, JNJ, PEP, and PM.

How did your portfolio perform to close out 2014? Did everything goΒ to plan throughout the year? Ready to get 2015 started?Β 

Thanks for reading.

Photo Credit: BimXD/FreeDigitalPhotos.net

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134 Comments

  1. Good job nonetheless. Portfolio market values sway all the time, but those dividends just keep coming, increasing your pile. I can understand how reaching a certain number can be nice, but I think you have the right attitude about it. As for diminished capital I think you’re still in a really good place. You’re doing what you like, living on your terms, and still able to invest, not too bad at all. I wish you a smashing 2015!

    – HMB

  2. The freedom fund fluctuate in value but the money it generates constantly increasing. Thanks for being a good role model for all of us.
    Happy New Year Jason, may 2015 bring us more blessing and prosperity!

  3. What a fantastic year you have had. When do you expect to cross the $200k barrier? I suppose your self-employed status will only take you as far as you want it, the possibilities are endless! Who knows where the next year might take you? Here’s to an exciting and successful 2015!

  4. Love the direction that chart is heading, Jason. Congrats on completing a successful year and I wish you the best for the new year and beyond. Thanks for sharing.

    R2R

  5. Happy new year Jason. You are exceeding your expections, that
    sounds great. Wish you a great 2015 full of good investments. Lets continue bulding the snow ball. Best regards Carlos.

  6. Life is all about change,which make life more interesting. I hope you would be crossing the 200k mark sooner πŸ™‚ Wishing us a quieter 2015

  7. Hello. Congratulations on a great 2014, I really enjoy your articles. I was wondering what you thought of HP (Helmerich&Payne)? It seems to be very inexpensive with an excellent dividend history.

  8. Freedom Fund looks good as always DM! You’ve created quite an impressive portfolio that should serve you well for years to come.

    Do you have any plans to write about self-employment? I would love to hear your thoughts on it. If you have something planned great! If not consider this your first request for 2015. πŸ™‚

    The Stoic

  9. A really solid 2014 and no doubt an even better 2015 to come! Hope you had a great holiday season and can’t wait to see how the freedom fund progresses over the next year. It’s always inspirational to follow blogs of people further down the road to freedom than I am, thank you for sharing as always!

  10. Mantra,

    As much as we like to see our portfolios shoot through the review in value – this is definitely OK to see some pullback (Tobacco actually had great pullbacks towards the end, as you mentioned with PM). I appreciate you sharing with us some of the troublesome spots of self employment with the FICA tax, but I know you will face that head on and handle it in perfect fashion.

    Let’s continue to strap our accounts as much as possible with ammo to deploy in the market as it downspins (fingers crossed for this) to allow further shareholder value to open up. With that, however, regardless of what the market truly does in 2015 – we should be consistent with purchases – as you have shown and others – as those assets are better than assets sitting in a checking/savings.

    Nice job DM, it’ll be at $200K before you know it, don’t ya worry!

    -Lanny

    PS – Happy New Year, big buckeyes game today!

  11. DM,

    Congrats on a great year in 2014. An increase of over $36k is great, and it’ll do wonders with your portfolio. I know you mentioned that you want to hit $200k but you don’t want to sacrifice the opportunities that come along with it. The great news is that you may be able to have the best of both works if you follow the plan outlined in the article. In this hypothetical i am about to lay out, we will assume your portfolio remains the same. Between the receipt of dividends and investing $1,200/month ($14,400 next year), you should be able to cross $200k from your current position! I know you can’t assume the market will remain the same, but your contributed capital alone could get you there. So there is a way to have your cake and eat it too, right??

    As always, keep up the great work! I bet you will have more capital to invest than you would expect, as your following will continue to grow and new opportunities will continue to present themselves. I have a hunch you will be investing over $20k, so lets re-visit this at 1/1/16!

    Bert

  12. I agree. Portfolio values fluctuate up and down on a given day, week, month, year. Imagine if you had a portfolio worth $1 million – for every 4-5% move in either direction, your networth increases or decreases by an amount of money that is equivalent to someone’s salary for that whole year.

    The thing that is always positive, stable and very often growing is the stream of annual dividend income.. That’s why living off the dividends is much easier psychologically to me, in comparison to focusing on short-term price fluctuations which can make even the person with nerves of steel nauseous.

    Good luck in 2015!

    Dividend Growth Investor

  13. A slight decrease is a great welcome, in a way. You were able to buy more shares of OKE at a cheap price than it was recently traded.

    I recently posted my December update and I was down also for the month due in most part to my REITs and energy holdings.

    FYI, your update in early Dec said November in the title. This article you have January in the title. Should this article say December in the title?

  14. Jason, Happy New Year!

    36k$ per year is significant amount of money. Nice job!
    Hopefully your portfolio will exceed 200k$ mark this year.

  15. Congrats on another successful year. I always enjoy your monthly updates and use them as motivation to continue on my own journey towards financial freedom. $200k is right around the corner for you. I can only imagine what your portfolio value will be in 5-10 years! Best of luck in 2015.

  16. Hey DM,

    The focus is really on the dividends and you have the right mindset, but it’s really nice how consistent the climb has been. Really nice to see your portfolio increase almost 40K. When I started following your journey I believe you had a portfolio around 130K, it’s really incredible how fast it grows when you add the compound dividends and deploy capital.

    Hope you had a great holiday period!

    Best,
    DividendVenture

  17. I too am hoping for a downturn, which would delay the arrival of the $200K threshold, but would likely be healthier for your ultimate goals. We’ve all been talking about a downturn for awhile now and it really is inevitable – just a question of sooner or later. My fear is that the longer it waits, the more severe it will be.

  18. HMB,

    Thanks for the support!

    You’re right. The lower capital availability this year is kind of a bummer in the sense that I’ll be able to invest less, but it’s a blessing to be able to live this kind of lifestyle right now. I have zero regrets, which is what it’s all about. πŸ™‚

    Wishing you a most wonderful 2015 as well.

    Best wishes.

  19. Nicola,

    2014 was very kind to me. It was a bit dramatic on a personal level, much more so than usual. But professionally, it was phenomenal. No regrets! πŸ™‚

    Assuming a flat market, I imagine I could cross over $200k sometime in the summer. But it’s impossible to say what exactly will happen there. I wouldn’t be surprised to see a 10% or 20% correction, which would be a wonderful delay.

    Looks like 2014 was very kind to you as well. You saved some money, lost some weight, and propelled yourself closer to the you that you want to be. How wonderful. Keep it up!!

    Take care.

  20. R2R,

    Thanks for the kind words.

    Wishing you the best of luck with your 2015 as well. You had a great 2014. We just have to keep it moving in the right direction. πŸ™‚

    Best regards.

  21. carlos,

    Thank you. Really appreciate the support! πŸ™‚

    The journey is going extremely well thus far. I’m incredibly happy and grateful.

    I hope you also have a great year. 2015 is full of opportunities. Let’s grab them!

    Cheers.

  22. shankar,

    Indeed. Life would be incredibly boring if it were the same experience every single day. I’m incredibly blessed that I’ve had this opportunity, and I have no regrets for making the most of it. Some people prefer money over time, but I’m quite the opposite. Less money and more time is fantastic. I just hope I can continue marching down this path, which leads to even more time.

    Best of luck throughout 2015. I’m excited to see what’s in store. πŸ™‚

    Thanks for dropping by.

    Take care.

  23. Lukaivan,

    HP is a great driller. If I were to buy a driller, it’d probably be HP. However, the drilling industry is highly competitive and fragmented. HP does indeed have an excellent track record as far as dividend growth, but it’s only recently that they started paying out a notable dividend. So it remains to be seen how well they’ll be able to manage a sizable payout, especially in light of falling oil prices.

    I think shares are undervalued right now, but I’d also consider the risk elevated.

    Cheers!

  24. You get the best of both worlds. Your portfolio value drops = more dividends for less. Your portfolio value rises = closer to $200,000. Either way, you’re heading in the right direction!

    Best of luck in 2015. Rooting for you to cross $200k!

  25. TheStoic,

    That’s a great idea there. I discussed how I make income online a number of months ago. But I’d like to write about the schedule at some point as well. Since this is about as close to FI as it gets without actually being there, it’d be interesting to explore what the average “workday” looks like. I personally think one of the biggest benefits is sleeping in/setting my own schedule. That alone makes a huge difference in my happiness. πŸ™‚

    But if you have any other ideas as far as the self-employment topic goes, I’ll be glad to see what I can come up with.

    Looks like you’re enjoying self-employment over there as well. It’s fantastic having so much control over your own time. That freedom and autonomy is worth far more than any object I could buy at the store, that’s for sure.

    Best wishes!

  26. Happy New Year Jason!

    The portfolio continues to provide income for you which is excellent.

    I too hope for some sort of a correction in 2015 as it will provide some great opportunities for us!

    Hope you had a great holiday and I look forward to reading your “journey” this year!

    Aloha from Maui – yes we are still here!

    Ray

  27. ERG,

    Thanks a lot. Really appreciate it. And I’m glad you find some value here. I know I certainly found a lot of inspiration in those (like Jacob and Pete) that were already much further along than I was when I first started out. It’s a target to aim for. πŸ™‚

    Keep up the great work over there. Consistent saving and investing will continue to make a big difference for you. I hope you’re enjoying your new job!

    Cheers.

  28. DM,

    As a former CPA, I would hope that you take full advantage of all the writeoffs available for you in your Schedule C (self-employment) tax form. You can write off pretty much all of your business-related expenses, your computer, furniture, advertising and any other related expenses.

    This will at least shield you a little bit from your overall net profit subject to self-employment tax. I actually think you should write a post about this exact subject early this year.

  29. Lanny,

    Yeah, the increased taxation is a bit of a bummer. But it’s a trade-off that has way more benefits than drawbacks. πŸ™‚

    I’m excited for opportunities throughout 2015. Though I may have less fresh cash flow to invest throughout the year, the portfolio will likely spit out more dividend income than ever. And that’s the position many of us are in due to consistent saving and investing. It’s nice to have $20k sitting around precisely when the stock market falls by 20%, but nobody knows if/when that’s going to happen and meanwhile $20k earns practically nothing in the form of cash. I’ll take my chances with continued increasing cash flow.

    Thanks for dropping by. Wishing you the best throughout the year!

    Best regards.

  30. I remember the article you posted about the sources of your income and I really enjoyed it. I was thinking more of behind the scenes type thing as far as how you structure your day, if you think you will be able to increase earnings and how that would happen without a drastic increase in time, how you maximize deductions and if you would ever open a IRA/401k for the self-employed to reduce tax payments. I know in the past you have stayed away from tax advantaged accounts in favor of building up the Freedom Fund, but I’m curious if you would consider using those accounts to supplement the Freedom Fund especially if you see writing continuing even after you reach FI.

    Just some topics I would be interested in. Thanks for taking it under consideration.

    The Stoic

  31. Happy new year, Jason!

    Hopefully we can both continue along the same path to FI. May 2015 as good or better than 2014.

    The final tally is in: My savings rate for 2014 was 64%. That’s up from a not too shabby 54% in 2013. Hopefully I can continue at 60% or higher this year.

    Br

    Jarmo

  32. Bert,

    We’ll see what we get, my friend. A static market means I’ll probably pass that mark around the summertime, but I’d rather see a 10% to 20% correction, which would mean I’d be delayed until 2016. The latter scenario would be much more helpful to building a larger dividend income stream. I can’t imagine the market just continues to go up and up, but you never know. Mr. Market can remain irrational far longer than we’d expect. πŸ™‚

    Appreciate all the support. Looking forward to continued success for everyone in the community throughout 2015, including yourself. Every dollar saved and invested puts us closer to where we want to be. Let’s keep our snowballs rolling!

    Best wishes.

  33. FFF,

    Incredibly glad to be in a position where I can share and inspire. πŸ™‚

    Keep up the great work over there. Financial independence is waiting for you, and you’re getting closer every day!

    Cheers.

  34. When I first read this article I noticed Jan in the title. I said Dec in my title on my own blog. So I decided to click on freedom fund on the right hand side to show your articles about freedom fund. It shows Jan then Nov. I assumed Nov was Dec without looking at the date of the article. It appears that your Dec post needs to have a label in order to categorize it.

    There are investors who think there account balance has to go up every month to be winning. I would much rather the prices to be lower so I can buy stocks cheaper and therefore higher yields.

  35. swedendividend,

    Nice job! Excellent. πŸ™‚

    Sounds like you finished the year really strong there. Glad to hear it. I imagine 2015 has even greater things in store for us.

    Thanks for stopping by and sharing.

    Take care!

  36. DGI,

    Absolutely. Not having to worry about portfolio value fluctuations is exactly why we’re investing the way we are. πŸ™‚

    I couldn’t imagine being someone who focuses on portfolio value. I don’t have any hair on my head, but I imagine my eyebrows would turn gray pretty quickly. Stressing out about an emotional stock market sounds like a horrible way to live and invest. I’d rather just sit back and collect my dividend checks.

    Thanks for stopping by. Wishing you much luck and success throughout 2015 as well, though I know we tend to create our own luck through hard work. And we’ve got that in spades.

    Best wishes!

  37. DL,

    Thanks so much. Every year is full of opportunities. It’s up to us to take advantage of them. πŸ™‚

    Wishing you the best as well. Very excited for what’s yet ahead!

    Cheers.

  38. IP,

    Hmm, I’m not sure what you’re referring to there regarding the article titles. My last FF update was in early December, which is here:

    https://www.dividendmantra.com/2014/12/freedom-fund-update-december-2014/

    It’s titled December, which is how it should be.

    As far as portfolio values go, they’ll fluctuate just like the market. But fluctuations to the downside really help us get to where we want to be. It’s funny because I’ve gotten the occasional comment that states I’ve only been so successful because the stock market has relentlessly climbed over the last few years. But that is actually the opposite of the truth, as a flat or falling market would get me to where I want to be much quicker. I imagine my dividend income would be a lot higher if the market were still 20% or 30% cheaper. But such is life.

    Take care!

  39. Tauri,

    Thank you for the kind words! All in all, it’s been a great year. No regrets. πŸ™‚

    I hope you have a fantastic 2015. Looking forward to seeing how many opportunities present themselves to us.

    Happy New Year!

    Best regards.

  40. Nice update ! I:love:to:see your:portfolio:rising this fast. T’s been a hel of a roller-coaster ride, qt least for me, in the last months of 2014. You are lucky to live inthe US, cause you are not disadvantaged with the 30% automatic tax withdrawal we have here in Europe. It is unjust, but so have they decided it . This equals a dohble taxation, as the company wlready paid taxes on ts gains before they distribute their dividends. All of this makes it more difficult.

    I am wondering also if the low oil prices will lower the gains of companies like COP, BP, CVX, etc… Shouldn’t their earmings be cut in half ? And the market price too ?

    Wish you and companions a very happy 2015 !

  41. DD,

    Thanks so much. Really appreciate it. πŸ™‚

    We’re all on the same team here, all growing, learning, and sharing. I’m excited for what 2015 and beyond has in store for all of us.

    Happy New Year. All the best throughout the next year.

    Cheers!

  42. I might have missed where you talked about this if you have, but are you reinvesting the dividends through your broker right now, or are you taking the dividends as income already?

  43. DV,

    I had a nice holiday over here, though we’ve been extremely sick for the past few weeks. Claudia and I were excited to have her stay home for a couple of weeks, but it turned out to be a quarantine. πŸ™‚

    The growth has been really solid, but what I’m really proud about is that this blog will chronicle everything along the way. So anyone who says that financial independence can’t be had in a bit over a decade on a modest income will be proved wrong.

    Appreciate all the support. Wishing you and yours the best for the New Year!

    Take care.

  44. Chris,

    I hear you. It’s kind of unbelievable that we haven’t had a major move to the downside in such a long time. I can’t imagine that things just continue upward from here, but you just never know. This kind of stuff just proves that you can’t time the market.

    But a severe drop will surely be not only to my benefit, but anyone else out there actively accumulating assets. Let’s see if we get what we’re hoping for. πŸ™‚

    Best wishes.

  45. He needs to focus on more tax efficiency going forward and let the freedom fund self fund new investments(via dividends) that Dave Van Knapp has done @ http://www.sensiblestocks.com/portfolio-dividendgrowth.html Since he is self employed, he could set up a Sep IRA to reduce tax liability tremendously, with the tax savings added to the Freedom Fund. My preliminary ’14’ federal tax liability will be zero thanks to 401k/IRA contributions plus other deductions.

  46. Ray,

    Thanks for the continued support. Really appreciate it. And I hope you guys are enjoying your time there in Maui. Sounds like a dream! πŸ™‚

    I guess we’ll see what we get in 2015 as far as stock prices. I can’t imagine we don’t see a correction at some point soon, but you just never know. I’ll continue investing and building cash flow either way.

    Wishing you the best of luck throughout 2015. Happy New Year!

    Best wishes.

  47. EWB,

    Good point there. I haven’t had any real business-related expenses until this year. Now that I’m blogging full-time and on WordPress, for instance, there are email and hosting expenses. So I’ll be deducting those for sure. The self-employment tax still has bite, but that’ll reduce some of it. I may go a little more crazy with deducting rent and everything like that, but I’d probably get an accountant at that point. So then I’d have to decide if the additional deductions are worth the extra costs. As of now, I feel pretty comfortable with TurboTax. But going crazy with deductions, and I’d feel better having someone help me out with that. We’ll see.

    Thanks for the suggestion!

    Best regards.

  48. Stoic,

    Right. Yeah, I think that’s a great idea. I definitely want to write about the schedule at some point, and how I go about structuring my day. I haven’t really had a chance to put together a real good article on it, as this year has been more experimental than anything. And I’m not real big at setting “routines”. I kind of go with the flow. And my schedule while I was staying up in Michigan, for instance, was way different than down here. But I things are starting to become somewhat consistent enough to put something together that would be fairly accurate.

    Good question there about tax-advantaged accounts. I still don’t plan to use any, however. Now, that could change if my income from writing becomes much more substantial than it is now, but I honestly plan for any blogging income that I take in once I’m FI to be rather supplemental. I don’t plan to stay nearly as busy with it eight years from now. That could also change, but I kind of doubt it.

    But great ideas. I’ll try to cover all of this at some point in the near future. πŸ™‚

    Cheers!

  49. Jarmo,

    Congrats!! Great job there with the savings rate. You killed mine for sure. I had a horrendous December, which cratered what was an already-low rate for the year. But I’ve made some changes that I think will help me improve the savings rate in 2015, even with reduced income. We’ll see.

    Keep up the great work. That’s a savings rate to be very proud of. πŸ™‚

    Best regards.

  50. Seraph,

    Exactly! That’s the win-win I’ve talked about before with dividend growth investing. Can’t really lose either way. More wealth or more income. Either way isn’t bad, though I’d much prefer the latter. πŸ™‚

    Thanks for all of the support throughout the year. Wishing you the best in 2015 as well. I think we’ve all had a great year, which sets us up for a wonderful run over the next 52 weeks or so.

    Take care!

  51. Jason,

    You had a great year throughout 2014 and I am sure you will break the $200,000 milestone very soon. Like you mentioned in your post as long as your dividend snowball is still rolling and maintaining its size the value of your freedom fund is of less concern as that means you’ll be getting more dividends for less.

    Happy New Year and thanks for sharing!

    Mr. Captain Cash

  52. Aspenhawk,

    Higher taxes are always unfortunate. We have double taxes as well, as corporations pay taxes on their dividends before they’re received by shareholders. Then shareholders are generally facing taxes as well, depending on the situation.

    Oil companies are interesting. I’m surprised that they haven’t been hit harder. I imagine that this may just be a delay, though. Many of the supermajors are integrated, so they have diversified operations, including refining. But their earnings will no doubt be largely affected if this drop is protracted. So it could be a thing where you see some of these stocks just hum along until an earnings report comes out that drops EPS, which may cause these stocks to drop quite significantly. Kind of funny how a company can sometimes announce that a report will be weak, but the stock doesn’t actually drop until the numbers come to pass. It’s almost as if a report is a “surprise” when it’s really not. Just one of those things. Either way, I’m okay. I’m overallocated to energy, so I wouldn’t mind if these stocks don’t drop much. But if they drop substantially, I’d be interested in selective opportunities.

    Happy New Year!!

    Best regards.

  53. Peter,

    I don’t think so. I guess we’ll see where things will land, and this blog/journey will prove that out. But I think that tax-advantaged accounts are far from necessary. It seems to me that people assume everything at face value, but I believe it’s not difficult at all to achieve financial independence in a relatively short period of time on a modest income AND while investing in fully taxable accounts. I think a Roth IRA has some attractive benefits to it, but the overall costs of not using one are small, and I won’t have to worry about tracking contributions or anything else. I’ll have access to all of my income and wealth at all times throughout my life, which is wonderful.

    Cheers!

  54. Henry,

    Yeah, I’ve considered setting up retirement accounts, but I have no use for them. Diverting funds to a SEP IRA or solo 401(k) would be a lot less income funding my journey to financial independence. People point to writing income, but I have no idea if this will continue like this. Google could change their AdSense program and that would affect me quite a bit. Or writing opportunities could dry up. I’d rather not shift my strategy to counting on writing income. I still plan on dividend income fully funding my lifestyle.

    Best regards!

  55. IP,

    Ahh, I see that. The label was incorrect. I fixed that, so the last article will pop up under a label search. Sorry about that. πŸ™‚

    Winning is a funny word. The only thing I want to “win” at is financial independence. And my portfolio value has very little to do with whether or not that happens. You’re absolutely right in that lower prices/higher yields does indeed help us “win”.

    Cheers!

  56. As always it’s fun to read about the progress of other dividend income portfolios. I fully agree with your assessment that portfolio value is definitely secondary to the dividend income it provides.

    Over the long term hits and misses will befall any portfolio and your experience with ARCP highlights this fact. Unfortunately, no one is immune from fraud or other accounting ‘mishaps’ no matter how “blue chip” a company is. Kudos for sticking to your investment guidelines and cutting the cord with ARCP. I have been known (prior to becoming a DGI investor) to hold on to losers to the very end.

    I’m excited about 2015, no matter where the markets head as I have grown quite addicted to our own DGI community and curious to follow others on their FI journey. Let’s have a great year!

  57. DivHut,

    Yeah, I don’t have a problem about cutting a loser loose at all. The only reason I held ARCP was because I was assuming Kay was telling the truth about the adjustment. But with all of the changes (including him being cut loose), it became clear I was simply speculating. You can make money speculating, but it’s just not for me. They have since eliminated the dividend for the time being, which would have led to me selling anyhow.

    I’m also very excited about 2015. I think of every year as this huge opportunity for personal, professional, and financial growth. I definitely plan on giving it my best shot one again. πŸ™‚

    Happy New Year!

    Best regards.

  58. MCC,

    Thanks!

    I wouldn’t mind at all reporting that the portfolio value had dropped to $160,000, if it meant my current capital can go that much further by buying more dividend income for the same amount of money. πŸ™‚

    Looking forward to another successful year for myself as well as everyone else out there, including you. It’s just an incredible gift to be alive, healthy, and in a position to build wealth.

    Let’s have a wonderful year!

    Cheers.

  59. Which is strange that those companies sold off like that after doing so well. I would expect any majority of selling at the end of year to be for tax loss purposes, but none of those companies had a bad year. Hedge funds rotating in and out of different funds I suppose prepping for the new year? Who knows.

    When it comes to your dividend income is that instantly rolled over or do you let it accrue to a certain amount and then decide to buy say 1k worth of stock? I was curious when I read that this year might not be as much invested as you like.

  60. First, Have a Happy and Healthy New Year. Second, I wish you a volatile 2015 with multiple opportunities to invest your capital at a discount!

  61. DM,

    I know you don’t try to time the market, but trying to get good deals when you can is always nice…that being said, do you plan on keeping a higher amount of cash on the side since you are hopeful that there will be a correction in 2015 so you can deploy it then? Or is that speculating? I was just curious what you might plan to do in terms of that. I have some fresh capital I’d like to use, but have those thoughts on my mind as to whether to just invest it all or be patient. Thanks!

    DLee

  62. Hi Jason,

    Up direction of your graph looks good, hiccup in a month or two is not that important and at the end, we need to see how much dividends are really growing that we want to live with. You are doing fantastic!

    All the best for new year 2015!
    PIM

  63. Steve,

    Who knows, indeed. That’s exactly why I don’t bother to try and understand this stuff or time the market. πŸ™‚

    I generally deposit fresh capital once or twice per month. I simply combine that capital with whatever dividends have accrued since the last stock purchase and then use the combined sources of funds for stock buys. Once I deposit cash in my brokerage account, it just goes to the general cash balance, which is where dividends go as well. It’s all capital. I’m capital agnostic.

    Best of luck throughout 2015!!

    Cheers.

  64. DLee,

    Good question. I never stockpile cash. I may sit on capital for a week or two at a time, and that might be simply because I’m analyzing a stock or two. I won’t purchase a stock if I don’t feel comfortable with the analysis or if it’s not complete. But I don’t sit on cash in terms of timing the market or anything else. If I have cash and a stock is out there that’s attractively valued and I have room for it in the portfolio, then it’s highly likely I’m going to buy. If the broader market corrects substantially, then the cash flow that’s now coming in fairly regularly will serve as firepower to go shopping with. πŸ™‚

    Hope that helps!

    Best regards.

  65. PIM,

    Exactly. πŸ™‚

    Appreciate the support. Looks like you had a fantastic 2014 as well. Wishing you the best throughout 2015. Let’s get after it!

    Take care.

  66. Congrats on the great year!

    I totally understand what you’re going through regarding future investment rates, as well–my wife, Marie, has left her stable job to write full-time as well. It’s a little scary, not knowing exactly how much we’ll be making, but I know she (and you!) both have the hustle and drive to make it happen.

    I think we are probably both looking at pretty bright 2015s!

    Happy new year!

  67. Congrats on having a great freedom fund. My portfolio did well, I just need to increase the investments into a good mix of dividend stocks in 2015. Up to this point I’ve been concentrating on pre tax accounts, and I am looking forward to adding some capital to after tax individual stocks in the new year.

  68. Congratulations on deciding to do what you truly love full time (writing). If you don’t mind me asking, are there any plans to write a book on dividend investing, or are your writing talents being used primarily for online content? I understand if it’s too early yet to divulge that information. πŸ™‚

  69. The psychological impact is probably the most often overlooked benefit of DGI. It’s sort of funny to watch everyone who fancies that because they are disciplined in the rest of their lives they are disciplined when it comes to investing. Same people who missed the last 5 year run (or is it 6 now?) we’ve had. Same people who were crowing about peak oil in early 2000 but refuse to invest when oil stocks took a dump this month. Same people who sold out at the bottom of the recession because it was too painful to see their hard earned money evaporate. Same people who really can’t articulate their strategy beyond “this is gonna be a hot stock!”.

  70. As usual, steady does it with nothing panicky in the mix. Market up, market down, but dividends in the door. As your online business continues to grow, I’d imagine you’ll end up with more cash available for investment that you currently think.

    I ended up doing a bit of a portfolio cleanup in December (I ended up dropping ARCP after the dividend suspension). All the cleanup dropped my projected dividends, but the portfolio is set up much better for growth and provides a strong, stable base for the future.

    Best of luck in 2015, plenty of work to be done!

  71. Congratulations on another great year DM! Watching how far you have come along in such a short period of time gives me encouragement that I will be able to eventually reach financial independence even though I only finished this year out with slightly over $50 in dividend income. Keep up the good work!

  72. Nuno,

    Thank you! The numbers certainly aren’t as impressive as what you may find elsewhere, but considering my income level, quality of life, and self-employment status, I’m really proud of the progress thus far. πŸ™‚

    Appreciate the support. I hope you had an even better 2014!

    Cheers.

  73. AnhaInvesting,

    Haha. Definitely! πŸ™‚

    Congrats to you on over $1,200 in dividend income. If you look back at my history, that’s what I made in 2011. So you’re just a few years away from seeing that income really start to snowball. Keep it up.

    Thanks so much. Happy New Year to you as well.

    Take care!

  74. Charles,

    Hey, congrats to you guys as well. That’s really exciting. And you’re right in that it takes incredible drive to make it work. It’s not like you just show up somewhere, clock in, and collect a paycheck. You have to make things happen every single day. So it’s challenging, but also incredibly rewarding. It’s like investing. You have high risk/high reward stocks and you have your low risk/low reward stocks. I consider writing for a living more high risk/high reward. The income isn’t really steady or even visible very far into the future, but the rewards are much better than a traditional job if it works out right.

    Thanks for the support. Wishing you guys a wonderful 2015 as well!

    Cheers.

  75. RichUncle EL,

    Sounds like you have an exciting 2015 ahead of you. πŸ™‚

    I know that there are some out there that believe I’d be much better off by going after a 401(k) or IRA, but it’s so wonderful to know that every single red cent of mine can be accessed carte blanche at any time. If Claudia and I decide in a few years to just whisk off to Thailand and live off of the income or something crazy, then we can do that. It’s nice to have that freedom. And freedom is what I’m after.

    Thanks for dropping by!

    Best regards.

  76. Steve,

    I’m telling you, it’s wonderful. I’m happier than I’ve ever been in regards to my professional life. Writing for a living is great. It’s unfortunate that some things with my extended family happened the way they did, but those things are really out of my control. Such is life. But writing for a living is just like any other passion – if you have the passion for it, it’s a blessing to be able to somehow monetize it.

    That’s a good question there on the book. For me, it’s all about providing value. I think a book is just another way to provide value, though usually more in a profound and (hopefully) evergreen way. I’d love to write a book, but I’m honestly not sure if I’ll have the time. I actually have an idea for a trilogy of books, and I kind of have them already mapped out in my head. But my schedule right now would make that tough. It’s possible that a project like that might be more possible if/when I can scale back on the writing, perhaps when the dividend income is pulling more weight and I don’t have to write online so much. We’ll see. I really enjoy my schedule and everything I’m doing now, so there’s no immediate need/desire to really go about changing that. It’s possible that these books will just live in my head and my legacy will just be the blog. We’ll see. You never know.

    Happy New Year. Let’s get after it in 2015. πŸ™‚

    Best wishes.

  77. Zol,

    Right. Some people just don’t have it. And those people are best off probably just sticking to index funds and DCA. Certainly nothing wrong with that. If you don’t have the temperament to dollar cost average into a group of hundreds or thousands of stocks on a regular basis, then you’re really in trouble.

    But I think it’s fun to test one’s mettle. For instance, I’m actually kind of excited to see how I’ll respond in a 20% or 30% correction. It’s one thing to imagine how I’ll respond, but it’s quite another to actually live through it and act as I had planned all along. I’m positive I’ll see something like that sooner or later. Invest long enough and it’s a foregone conclusion. Just a question of when. But it should be interesting to see how it all plays out.

    Cheers!

  78. W2R,

    I’m with you 100%. Dropping ARCP was simply a quality call on my end. Although, I would have dumped it after the dividend suspension anyhow. While my income temporarily dropped, the quality picked up and I’m really content with where things are now. I look across the portfolio and I see no real problems. That’s good stuff. πŸ™‚

    You’ve set yourself up for a great run in 2015. Things are really getting exciting across the community. We’ve had a lot of people aggressively investing for at least a year or two, so we’re going to start to see some snowballs really rolling downhill at some point in the near future. It’ll be awesome to see us all reporting five-figure annual dividend income totals within the next few years. It’s like we’re all growing up together. Kind of funny how that’s working out.

    Plenty of work to be done, indeed. I’m ready and I know you are too. πŸ™‚

    Thanks for the support!

    Best regards.

  79. FreeIn15,

    $50 could be the start of something really great. It was just a few years ago, back in 2010, that I only earned a couple hundred bucks in dividend income. So you see what type of progress is possible if you stick with it month in and month out. πŸ™‚

    Keep at it!

    Cheers.

  80. As far as what went on with ARCP …

    Remember …

    In 2010, nearly anything and everything worked. We’ve been in a very strange environment for the last six years. It’s been bizarre for myself, as I work the market professionally for the last 18 years. What we’ve had, is not normal. And this easy phase is coming to an end, and on yield and Fixed Income (such accounts are referred to as Fixed Income) equities I think is still the place to be, but higher yield in equities is going to get hit, and hit HARD on corrections to flight to quality instruments.

    That being said, markets move in cycles. We’re getting out of the easiest phase, or at least … just starting to. I think Equities have farther to run. But we’re moving out of the “Market severely undervalued” phase from 2009 to 2013, and now, beginning to move into a phase where macro considerations can take over for periods of time, and this becomes very, very much about having a correct Top Down look, or … if one doesn’t wish to focus on Macro, and go the more Graham route … be ridiculous about due diligence on single issue names from a Bottom up perspective. Because now we’re moving into a ‘fairly’ valued market.

    Regardless, I digress. That’s simply important to keep in mind, as far as the environment we’re in. Yields, or dividends, have been backed into a corner. Not as far as their survivability. But as far as their attraction to the market. ZIRP starved everyone for yield, and everone HAD to run to it (when I say everyone, I’m talking about institutions). They simply were forced to run to ridiculously high yields for survivability, regardless of the quality of that yield. Now, the talk of the street is about everyone priming themselves for the Fed raising the rate. Dividends will survive. But they won’t be as attractive to larger institutions as we move on through the cycle. That’s what is going on Macro. There’s no where left to run for those that chase higher yield.

    So the solution to this dilemma is quite simple.

    Don’t chase higher yield!

    Seriously, when the market bites you, you can take fantastic lessons. It’s where the most vital lessons come from as you grow, is when you get bit. The market is a mean … mean mistress. She will reap upon you rewards you can’t fathom. But at the same time, she will bit you HARD if you stop watching for a second.

    But she is also a teacher.

    Learn the lessons, and let’s get ready for the next cycle.

  81. Congrats on having a great 2014. 2015 will be even better. I know you’re like me, we both don’t really worry too much about the daily/monthly change to our portfolio value. What’s more important is the dividend income amount is increasing. πŸ™‚

  82. AileronTrading,

    Hmm, I’m not sure if any of that is relevant to ARCP. They had an accounting scandal. It’s not a macro issue. It’s a management problem. To compare ARCP to macro issues or other REITs is awfully strange. If I’m not mistaken, the REIT sector did the best in 2014. Now, I think some of what you’re talking about has come to pass in some high-yield areas of the market, like utilities. Some utility stocks are valued far higher than their norms, so that could cause a problem when the next correction hits.

    But yield and quality aren’t necessarily mutually exclusive. But I suppose it depends on what your definition of attractive yield is. I just recently bought UL. Yielding over 3.5% and what I think is a high-quality stock. 3.5% is about twice the broader market, so I’d consider that an attractive yield.

    I think those that are chasing yield by loading their portfolios up with mREITs, BDCs, utilities, and telecoms might have a harder go of it if things become messy, but who’s really to say? Impossible to predict this stuff. A lot of people have been predicting a major correction for two years now. I think the key is to stick to your plan, regardless of the noise.

    Cheers!

  83. Tawcan,

    Exactly. I report these values to stay consistent and show part of the overall process, but it pales in importance relative to the dividend income the portfolio is generating. πŸ™‚

    I’m excited for 2015. Let’s keep it rolling!

    Best regards.

  84. So happy for your life changing year. You started writing full time, you got engaged, and you put a ton of fresh capital to work in solid investments. Great job, Jason. It’s inspiring seeing your portfolio move by itself at these levels in such a short amount of time. Thanks for all the sharing in 2014, and cheers to the New Year.

  85. Ryan,

    Thank you very much!

    It was definitely a transformative year in so many respects. There were some things that happened along the way that were unfortunate, but everything led to where I now am. And I’m very, very happy with that. πŸ™‚

    You’ve had a fantastic 2014 over there as well. Really excited to see where 2015 takes you. I’m hoping you can put away even more capital and get even closer to freedom. Every day and every dollar is one step closer. Keep at it!

    Best wishes.

  86. Oh, I’m not saying or predicting a major prediction. If anything, my Fixed Income side of my book is built bullish on equities, with some volatility. Thankfully, I’m not stuck with statutory limitations. That’s the advantage we have. I got 20% returns in Fixed Income last year, with higher than the 10 Yield returns, but that’s not the point. I did it through going with _ _ equities _ _… so I’m definitely bullish on equities and stocks and the yields I was getting there, because I knew that equities would favor it..

    And yeah, it’s always best to stick with something if _the results are positive and will work in any macro enviornment_.

    I suppose the comment was a two-fold one. One, of what higher yield can expect as institutions switch back over to better quality credit notes. So the comment on Macro to REITs is _vital_ to understand ( Rather than type it all out here, my comments of: http://www.sharpetrade.com/high-yield-crack-yo/ )

    But please, don’t take my word for it.

    Talk to some bond specialists. Yes, they can play REIT’s, as they know the field, but just ask them about money flow issues on REIT’s and MLP’s, and fund inflows and outflows being seen in preparation for ZIRP exit. They’ll be the first to tell you that it’s ALL about Macro.

    I’ve been doing this for almost 19 years now … so really, I suppose it was my long and about way of commenting that crowds start looking at that yield even in the first place, because of the Macro environment. REIT’s and companies even _become_ a discussion because of this brief window of time we’ve had with ZIRP in the last 5 years. I mean, they’ve been around for 40 years, but it’s only this year that they’re recognized as a class in and of themselves? That says something right there. The pressure has forced folks in that direction, due to the demands ZIRP has placed on all of us.

    But many of the folks in our end of the woods are quietly getting out as best they can. They were sort of forced their if their fund mandates they are a Fixed Income, and God help them if they have statutory obligations on their exposure as well as direction (Bond only Fixed Income guys right now are in the tightest spot possible, and they have to stay there by law). It’s made their job difficult, but they are busy prepping their laddering, and if they can hedge off through the statutory mess, they are, or if they can’t, they are playing the spread on the curve as best they can.

    But it’s just been wild for us to see interest in these companies where investors are even interested in something like an ARCP in the last 5 years. I was just saying that ARCP becomes a discussion, because of this environment, and the circles I run in?

    We just stand back and are amazed that people are playing with those instruments.

  87. AileronTrading,

    “I mean, they’ve been around for 40 years, but it’s only this year that they’re recognized as a class in and of themselves? That says something right there.”

    Real estate is a different asset class than stocks. REITs are a way to gain exposure to real estate without owning the physical structures. My REITs tend to perform very differently than almost all other stocks in my own portfolio, leading to a low correlation. Whether or not you decide this is a different asset class or not is up to you, but it’s certainly no new concept. I’ve been hearing both sides of this argument since I’ve been investing (going on five years now). Here’s an article dating back to 2006 discussing REITs as a separate asset class:

    http://www.fa-mag.com/news/when-did-reits-become-an-asset-class-1490.html

    This debate has been going on a long time now. Will likely continue for a long time. I personally don’t care either way. I just look at the quality of the underlying company like any other from a quantitative and qualitative standpoint. As far as rising interest rates, I’ve actually read some data that suggests that REITs actually don’t perform all that badly in a higher-rate environment (and many of the longstanding REITs have operated during times of much higher rates – as you point out they’ve been around for more than 40 years).

    Cheers!

  88. Hi DM, thanks for your writing.

    Can I ask you where from you get the drawn images for every blog post? What good sites with free pictures do you recommend? I’m starting blogging myself again and a picture in a blog post makes it more lively.

    Thanks in advance!

  89. Very excited for 2015!

    Finally broke 4k in distributions across al accounts. Looking forward to 5k investment income and passing 240k net worth by the end of the year. Of course the market could help me rocket past that or make me fall behind, but it’s reinforcing to keep moving ahead. If the market declined by 1% wag month that wouldn’t be so bad either. I’d love to put 40k to work in a bear market!

  90. DM,

    I’ve just recently found your site and I have to say, what an inspiration. I’ve been reading the site for days trying to soak everything in. Thank you for sharing your journey. Though I have a most of my money in index funds and a small position in a few dividend stocks (been an investor in DIS since it was $15 a share back in the early 2000’s!) that will definitely be changing. I’m 36 so I feel like I’m way behind the curve but there’s never a time like the present to start a new path right? Thanks for all you do.

  91. Swedendividend,

    Hey, great news. Best of luck with the new blog! πŸ™‚

    I use freedigitalphotos.net. Great service, but make sure you cite them in every post.

    Cheers!

  92. FM,

    Thank you very much. It was a great year on many accounts. I’m blessed. πŸ™‚

    I certainly hope your 2015 is even more fruitful. An entire year of opportunities. Make the most of them!

    Take care.

  93. Ravi,

    That’s awesome. Keep up the great work! $4,000 is $333 per month, or a car payment for most people. That makes a big difference in your monthly cash flow.

    Let’s indeed hope stocks become markedly cheaper this year. I won’t be putting anywhere near $40k to work this year, but I wouldn’t mind putting $15k or $20k to work in stocks that are much more attractively valued. πŸ™‚

    Cheers!

  94. Keith G.,

    Glad you stumbled upon the blog. Thank you for the very kind words. I’m happy to share. I believe that financial independence is truly attainable for just about anyone out there that wants to achieve it. Sharing my results makes the journey tangible. It’s more than just inspiring people to change. It’s showing how the change can be real by changing myself. Be the change you want to see, right?

    36 is still young. Get on the ball now and there’s no reason why in a decade or so from now you won’t be able to own a substantial portion of your own time, if not all of it. That would put you in your mid 40s. A pretty great position to be in. πŸ™‚

    Good luck!

    Best regards.

  95. DM

    I enjoy reading your blog, keep up the good work.

    Are you going to post your dividend income for December 2014.

    Your blog is a must read of mine.

    Thanks,
    Daniel

  96. Daniel,

    Thanks a lot. Really appreciate the support and readership. πŸ™‚

    I’ll be posting the dividend income update this coming week. Be on the lookout for it!

    Best regards.

  97. Could you explain that further? You get your dividends paid out in cash and use that to buy more stocks? i.e. you don’t reinvest them? I totally missed that in your strategy. I’m kind of…confused by it tbh.

  98. dee,

    “You get your dividends paid out in cash and use that to buy more stocks? i.e. you don’t reinvest them?”

    Receiving dividends in cash (not shares) and using that dividend income to buy more stocks is reinvesting dividends. I simply don’t automatically reinvest dividends back into the respective company that paid them out.

    For instance, if Coca-Cola pays out $40 or whatever, that shows up in my brokerage account as fresh capital. I combine that capital with all other dividends received since the last stock purchase along with fresh capital from savings. I then use all of that cash for fresh stock purchases.

    Not reinvesting dividends would be withdrawing dividends out of your brokerage account and using them to pay for rent, food, and all other expenses. That’s obviously the long-term plan, once dividend income is sizable enough to exceed expenses. But that’s still quite a few years off for me. But if you’re using the money that companies send to you in the form of dividends to go out and buy more stocks, that’s reinvesting dividends. Reinvesting dividends isn’t confined to reinvesting them back into the company that paid them.

    I hope that helps!

    Best regards.

  99. Hi Jason,

    After reading you for some time, you inspired me of starting a blog as well (http://retiredat50.wordpress.com). I am just at the early stage of learning blogging and explaining our way of achieving financial independance.

    Well done for the freedom fund and looking forward discussing the future.

    cheers, retiredat50

  100. CBB,

    Thanks!

    I’m lucky that we have such a wonderful and supportive community here. I hope to keep my end of the bargain up for many years to come. πŸ™‚

    Looking forward to what 2015 has in store for all of us. I’m extremely optimistic!

    Cheers.

  101. retiredat50,

    Glad to hear that! πŸ™‚

    Best of luck with the blog, investments, and journey to financial independence. I hope you find even more success than I have.

    Stay in touch.

    Take care!

  102. It’s good to have ‘The Mantra’ back in the game for 2015. I’m a value dividend investor in the SET (Thailand). So can you imagine what my nerves are like?

    All the best for 2015.

    Mike

  103. Mike,

    I’m always in the game! πŸ™‚

    Investing while living in Thailand must present some interesting opportunities and challenges. The good news is that the cost of living is so low there. I still have a desire to make my way over there at some point.

    Thanks for the support. All the best to you as well in 2015!

    Cheers.

  104. Indeed, the cost of living is lower than in he developed world. If you ever think about coming over to Thailand, I live in Phuket and I would be happy to meet for a cold one and a chat. Keep the blog posts coming.

    Mike

  105. I opened a position in BBL @ $ 40.36. The stock is redicilously low priced. It’s gotta be a good investement.

    Now we’re both shareholders of BBL, Jason!

  106. DividendWell,

    Nice. Very nice. I agree that the price here is ridiculous. Can’t always (usually) rationalize Mr. Market. Best to just take advantage of him when he’s in one of those moods. πŸ™‚

    Happy to be a fellow shareholder!

    Cheers.

  107. Happy New Year!

    That graph of yours is very motivational – visual and powerful!

    As I’m barely one year into saving/investing properly, I hope that in years to come, I too will be able to display a graph like that!

    All the best for 2015!

  108. Weenie,

    Thanks. I hope the charts are indeed motivational and inspirational like that. Proves the power of consistent hard work and believing in yourself.

    I’m confident you’ll get there too. You can see that every single month is a step in the right direction. Takes a little time to get compounding working for you, but look out when it starts doing its thing! πŸ™‚

    Wishing you much luck throughout the New Year. Keep plugging away.

    Cheers!

  109. Hello Jason,

    one question regarding the increase of 36000$ in portfolio value. Is that number only due to price appeciation or is that already including the amount of money you invested. I know I could figure this out by myself through analyzing your purchases and holdings, but I think you could easily spare my the time. Appreciate it!

    Best regards,
    Ralf

  110. Ralf,

    The amount of the increase factors in everything including dividends that were reinvested, fresh capital invested, and capital gains. It doesn’t factor in any cash I set aside. This is just the value of the portfolio as it stands on that particular day.

    Cheers!

  111. I love keeping up with your Freedom Fund. I made the mistake of thinking a professional money manager would be better than me at investing my money. Boy, was that a mistake. He convinced me that stocks I’d had for a long time should be sold, then he invested in several things I didn’t understand. But he was smarter so I kept telling myself not to panic. Fired him after 2 years at the end of 2012 and have been trying to right the ship slowly ever since. Financially I would have been better off continuing on the course I was on, though the experience did teach me that I was certainly better off to only invest in things that made sense to ME. Now if I feel overwhelmed I read one of your articles, take a deep breath, and carry on. Thanks for the consistent dose of common sense.

  112. Wondering Woman,

    Sorry to hear about your experience there, but it certainly served as a valuable learning experience. I’ve heard of a lot of horror stories like that, where so-called “experts” sell unwitting clients products that make the advisor a fat commission fee. That’s a real shame.

    I’m glad you’re taking control of your own financial future. There’s a learning curve there, just like with anything else. But you sound like a smart woman. If there are others out there that have learned all of this, why not you? What prevents you from becoming the most knowledgeable investor around? Nothing.

    Stick with it. I’m confident the you of 10 years from now will be very glad that the you of today is taking control. πŸ™‚

    Best wishes.

  113. Hi DM,

    I found your site a few weeks back and have really enjoyed your articles.

    Do you do any sort of attribution as to changes in market value? Do you have benchmark against which you compare your performance on a quarterly/yearly basis?

  114. JCB,

    Glad you stumbled upon the blog! πŸ™‚

    I don’t worry about changes in market value for my holdings, other than looking forward to drops across the board, which opens up buying opportunities. My benchmark is related to dividend income. Specifically, I’m looking to achieve certain amounts of dividend income every year which keeps me on pace for financial independence by 40 years old. Otherwise, I don’t bother to compare myself to others. What someone else is able to do has no impact or relevancy on my journey.

    Cheers!

  115. HI DM

    What’s your view on the price of oil at the moment. The big sell off last week and continuous doom and gloom in the financial press has put my head in a whirl. What’s your view on the situation? I’m determined not to let Mr. Market’s mood affect me, but it’s tough. 11% of my portfolio is in oil exploration.

    Mike

  116. Mike,

    Well, my view is that the world will run on oil and gas for at least the next couple of decades. So the current issues really don’t bother me. Supply and demand fluctuates and it takes time for the market to shake that out both ways. That said, oil is very volatile over cycles. Oil has been everywhere from $40 to $140 over just the last ten years. If that kind of volatility bothers you, you probably shouldn’t have 11% of your portfolio exposed to that.

    As far as stocks go, you should be jumping for joy here. Assuming you’re not selling stocks to pay for expenses, this should be an opportunity that’s becoming better by the day. Even if you’re not still accumulating assets, living off of dividend income is such a wonderful strategy precisely because these types of swings don’t really impact you.

    I hope that helps. πŸ™‚

    Cheers.

  117. Thanks for your comment, DM.

    I know oil is cyclical and it will eventually drift back up, but sometimes it’s hard not to get the jitters.

    Keep blogging DM. I read your posts every day, and find them inspirational.

    Mike

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