December 2012 Net Worth Update

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.

December_2012_Net_Worth

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!

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EvanFI FighterMy Financial Independence JourneyThe First Million is the HardestDeacon @ Well Kept Wallet Recent comment authors
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JC @ Passive-Income-Pursuit
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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!

Brick By Brick Investing | Marvin
Guest

Congratulations, your progress looks good. You’re right if this doesn’t encourage someone to start investing then they have no hope!

Holly@ClubThrifty
Guest

Wow, that is an awesome amount of dividends! Money for nothing is definitely the best =)

Martin
Guest

very nice results. Congrats! I am also impressed on your dividend income. Motivating to work harder on my own investments.

Martin
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“…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.

Deacon @ Well Kept Wallet
Guest

Congrats on the progress you made in 2012! Here is to an even better 2013!

The First Million is the Hardest
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$2000 in dividends is very impressive. It’s pretty amazing how far your 401k has come in 3 years…good work indeed!

My Financial Independence Journey
Guest

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.

Evan
Guest

Wow! Completely jealous of the $2K passive income bump. Imagine how good your 2013 December is going to look?

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