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.
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.
Roth IRA: $319.40
Taxable Accounts: $340.92
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
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.
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!