Another month, another net worth update. I’m starting to really look forward to these updates, as it’s always fun to see how we are doing in the grand scheme of things.
Progress
I made a few purchases in December, buying shares of The Southern Company (SO) and LinnCo (LNCO) to help give the net worth a little boost. Further, December was a fantastic month for dividends! Not only for the taxable account, but also in the Roth IRA and 401k. In total, I received over $2000 in dividends in December.
Dividends:
Roth IRA: $319.40
401k: $1613.53
Taxable Accounts: $340.92
Total: $2273.85
If we add in the rental property profits, the passive/semi-passive income streams produced close to $3000 in total.
Note: The bulk of the 401k are in index funds that only pay distributions once each year. Hence, the larger than normal payout. The Roth IRA index funds pay quarterly, just like my dividend stocks.
Net Worth Update:
Roth IRA: $35,804.83
401k: $76,304.42
Taxable: $68,631.40
Total: $180,740.65
In November, the net worth came in at $176,315.96. This month represents a 2.51% increase. I am now 40.16% of the way there to my goal of building a nest egg worth $450,000.
Thoughts
Naturally, I’m very pleased with the passive income received this month. Anytime you can receive over $2000 for doing absolutely nothing, is a wonderful feeling. Also, the progress just keeps on reaffirming my already strong belief in the powers of compounding. It’s truly amazing to watch this snowball grow in size as the years go by.
Just looking back to 3 years ago, I can see that I only received $153.57 in dividends from the 401k. By staying the course and investing to the maximum each year, I’ve been able to increase my dividend payout by over 950%. If this doesn’t convince the average person to invest, I don’t know what will.
For 2012, I received $1165.89 in dividends in the taxable account. This is also Year 1, and just the beginning. I can’t wait to see how this income stream is performing in 10 years or so.
All in all, it’s been a very good year. The portfolio continues to make strides, and I look forward to passing the $200,000 mark in 2013. Can’t wait until I’m half way to the target of $450,000!
Congrats on breaking the $1k mark in dividends last year! I’ll hit that this year and possibly hit $2k, although that might be a stretch, I’m not really sure since I haven’t had a year where I’ve sold off any of my ESPP shares. I’m curious how much I received in dividends from my capital invested in mutual funds. I’ll have to give that a looksee.
You should be able to pass the halfway mark of your net worth goal in 2013! Here’s to a great year!
JC,
Thanks! Yeah, you should take a look at your mutual funds every now and then… you just might be pleasantly surprised 😉
I tend to ignore them for most of the year, but I always love to tune in around December in anticipation of the dividend payout.
Best wishes in 2013!
That might be a project for this weekend. Although one of my websites doesn’t like to come up all that clear on my work computer for some reason.
Congratulations, your progress looks good. You’re right if this doesn’t encourage someone to start investing then they have no hope!
Marvin,
Thanks! The best part is that the index funds are bought regularly throughout the year and I’ve been sticking to the same funds. In other words, they make investing so easy a first grader could probably figure it out. So, there’s really no excuse not to invest. The typical response of “I’m too lazy to do it” should not apply here!
Take care!
Wow, that is an awesome amount of dividends! Money for nothing is definitely the best =)
Holly,
Yes, I agree! Passive income makes me very happy. To see it compound and grow adds even more motivation to continue saving. Others may think we are sacrificing, but we will reap the rewards of all this hard work later on in the future. Can’t wait 😉
Take care!
very nice results. Congrats! I am also impressed on your dividend income. Motivating to work harder on my own investments.
Martin,
Thanks! I hope you continue to stick with your plan. You are doing great!
Cheers!
“…Anytime you can receive over $2000 for doing absolutely nothing, is a wonderful feeling…”
Tell me about it! It is gorgeous!!! I would be happy having it every month by doing nothing.
Martin,
Yes, you gotta love these individual, small victories. They will eventually add up to something much bigger and more meaningful – freedom.
Take care!
Congrats on the progress you made in 2012! Here is to an even better 2013!
Deacon,
Thanks! Best of luck to you in 2013 as well my friend!
Cheers!
$2000 in dividends is very impressive. It’s pretty amazing how far your 401k has come in 3 years…good work indeed!
First Million,
Thanks! The progress the 401k has been making is great. A lot of companies offer free matching, so I would encourage everyone invest and start early, if possible. In a few years, I hope $2000 will look like just a drop in the bucket. You’ve gotta love the power of compounding over time!
Best wishes!
Nice work growing your net worth. I’m really impressed by your $2,000 a month in dividends. It looks like you’ll hit your $450K goal in no time at the rate you’re going.
MFIJ,
Thanks! Yeah, I’m doing my best to maximize my progress in 2012/2013. Hopefully the journey to 450k gets a lot easier after some solid foundation is put into place.
Take care!
Wow! Completely jealous of the $2K passive income bump. Imagine how good your 2013 December is going to look?
Evan,
Yeah, the retirement accounts are starting to make an impact, which is great. I can’t wait to see what the December 2013 results look like.
Best wishes!