Just a FYI for potential readers: My next several posts will probably be financial related. Hopefully this doesn’t “bore” you too much! 😉
Like many people, I have long term goals for myself from a career, financial, and personal perspective. These goals are 5,10, and sometimes 10+ years in the future. One of my long term goals is being able to a taxable (non-retirement) investment portfolio that generates at least $2,500/month in income. This equates to a portfolio that annually generates $30,000 each year. Having a portfolio that generates $30,000 per year sounds like a steep mountain to climb unless you break it into smaller more achievable goals.
I wanted to share a few thoughts and strategies about breaking things into smaller goals that have worked for me as I go about this journey to generate at least $2,500 in investment income per month…
It is really hard when you first start buying stock realizing that the stock you just purchase may only pay you a paltry $3.80 per quarter or ~$13.00 per year. That can be down right demoralizing to even think about! So instead of thinking about the longer term amount, when I bough that first position, I looked at things from the perspective of if I had enough dividends to buy a new share of stock in the company I was buying. This did two things for me:
It made the goal more realistic and achievable
It made me focus on the short term while inching along towards the longer term objective
I was talking with a co-worker a few weeks ago about where I’m at towards my long term goal and told this person that year 0 to year 3 are probably the hardest years to go through when it comes to this investment goal. I say this because it’s difficult to see any progress being made especially when the investments I’m making may only be buying partial shares of stock in the very beginning. It’s also challenging because for most stock investments the benefits to ownership are not realized immediately and you have to be in it for the long haul through both the ups and downs that the market could go through.
I would estimate that I’m somewhere between the middle of year 0 and the end of year 1 in terms of establishing a dividend investment portfolio, having a good number of high quality investments, and starting to see the benefits of dividend re-investments and dividend raises. Right now, I have 5 positions which I consider to be a full positions and am working on building a 6th full position. I define a full position as an investment where reinvested dividends will buy at least 1 full share of stock per quarter.
The 6 positions that I have now generates an estimated $1,400 per year in investment income. (Note: My $1,400 number is actually conservative because I own a couple ETFs where distributions can be uneven and aren’t as predictable as companies who pay dividends.) While the $1,400 number is still really low compared to the $30,000 per year that I want, I am going to use to set a small goal. My small goal for the rest of the year is to get my forward estimated annual dividend income to $2,000 per year.
In my mind, $2,000 is a more attainable goal to aim for this year. Even if I don’t achieve that goal by the end of year, the number is more attainable and realistic than looking at it against the overall number. This also helps me with planning. Right now, I am working on establishing my 6th full position and after that I will build a 7th full position. My plan is once I have my 7th full position is to circle back and buy an additional 10% in my existing 6 positions. Then I will establish positions 8, 9, and 10 and then recycle to other existing positions to add 10% again.
Over the coming days, weeks, months, and years, I will continue writing about this journey to $30,000 in investment income. I hope you will like hearing about my journey!
If there’s anything I would like to end with, it’d be this: Establishing smaller goals to achieve bigger ones is something that can be applied to anything whether its weight loss, paying off debt, buying a home, or investing. Celebrating the small wins also makes it much easier to continue marching down the path of obtaining that bigger goal.
Ah, the crazy Brits…they’re always up to something that’s bound to cause a stir. Whether it’s voting for Scottish independence (2014) or voting on the United Kingdom (UK) leaving the European Union (EU) (this year). One thing I do admire about the system of government in the UK is how they put they major policy questions directly to the citizens for a vote (even if the referendum was non-binding)
With that in mind, I wanted to share some thoughts on Brexit…
Like the majority of the rest of the world, I was quite surprised when the majority of the votes came in favor of leaving the EU. I do think that the British people are making an ill-informed decision or a decision that they are bound to regret in the years to come. There’s many things that the British government will have to do such as re-issuing passports, review current laws that were passed for EU regulatory purposes, negotiate a new trade agreement with EU, determine the status of EU citizens in Britain and British citizens living in the EU, and the list goes on and on! One other thing for consideration is that by leaving the EU, it may also force the break up of the UK. Every single county in Scotland voted to remain in the EU. Also, Northern Ireland is exploring its options to keep trade and borders open with Ireland. It’s no wonder Prime Minister Cameron is letting the next PM activate article 50 of the Lisbon Treaty that allows the 2 year clock on leaving the EU to begin ;).
I also think that the U.S. markets are overreacting. The markets in the U.S. have dropped almost 1,000 points from last Thursday’s close due to the “global uncertainty” associated with Britain leaving the EU. In fairness, Britain is the world’s 5th largest economy, however, a lot can and will happen if Britain decided to declare under article 50 that they are leaving the EU. What this overreaction presents for me is opportunities to buy stock at discounted prices! I only wish I had more cash to take advantage of the price drop. It’s like I was explaining to one of my co-workers today, our company is not materially worth less the today because the British people voted to leave the EU. I’m also a believer that this price drop in the market will eventually recover.
From a selfish standpoint, now is a great time to travel to Britain as the exchange rate has gotten much more favorable for the U.S. dollar. Additionally, if you’re buying a house in the next 30 days or so, you may be able to lock in a lower interest rate as there as been a significant surge in buying 10 year U.S. Treasury bonds. This has caused the yield on the bonds to decrease and because mortgages are closely tied to the 10 year Treasury yield, interests are lower.
It will be interesting to see how the vote to leave the EU plays out. There has been talk in Britain of voters not understanding what they were voting for, a petition calling for another vote on leaving the EU, and leaders of the “Leave” campaign walking back on their pledges on what happens and how certain programs would be funded if the “Leave” vote won.
Leaving the EU will be a complex affair with lots to consider for Great Britain and its (former) EU partners. There is much to discuss if and when Britain declares that it’s leaving. So far the biggest losers of the vote to the leave the EU have been the British citizens with the pound losing its value, markets in turmoil, and the potential for Scotland to leave the UK.
I’ll leave you with one thing to ponder…
Given that the vote on last Thursday was non-binding for the British Parliament and the complexities behind actually leaving the EU, will the British actually leave or will this end up being bluster that will end up causing a lot of anxiety and costing people a lot of money? As for me, while everyone is panicking about the uncertainty and trying to figure out what to sell, I’ll be happily buying cheap stock!
If you’re interested in reading more about “Brexit”, I encourage you to consult the following links:
Yowzers! This was bound to happen…finally I am circling back to my “long, lost, and almost forgotten” blog/site. A lot has changed and gone on…
First off, this site used to be hosted by hostgator and I had to pay for the privilege of being hosted. The web hosting renewed every May from 2009 – 2016. This year, I decided that I wasn’t going to continue the hosting by hostgator and I decided to just go with the free option offered by WordPress.com. I never really monetized the website and more used it as a journal/place to express ideas and thoughts. Therefore, I decided the free options were good enough for me and my purposes. This has led to saving me $140/year. 🙂
You now might be asking what my plans for the site are going forward? Really, I have no idea how often I will post. I am in a different place and mindset than when I first setup this site and domain. Back then, I was in the midst of planning a trip around the world. Now, I’m working on planning a wedding, paying off a house, occasionally traveling, and saving money and investing. My thoughts are to turn this site into more of an online journal and journey for people to follow/comment on etc.
Recently, I’ve been investing in the market and have made this to be a new habit. My goal is to someday be able to cover my monthly expenses with dividend/investment income. So far I have 5 positions that purchase at least 1 new share of each stock every quarter. I’m working on my 6th position now. It’s definitely a work in progress, but it’s been fun seeing it get off the ground! I’m sure there will be at least a few more posts regarding investments/opportunities for investments.
Some major changes for me….
Since my world trip ended in Sept 2012, I’m on my 4th employer. Sometimes, I’ve left by choice and better opportunities and other times, I’ve decided to leave because of re-organizations/title changes/changes in responsibilities. I’m happy with my current employer, boss, and team so I’m hoping for a little stability in employers the next 2-4 years. It’s almost been a year since I’ve been with my current employer.
I’m also getting married in September of this year! Woohoo! That will be another great and exciting change. I’m marrying a Minnesota girl who is a pre-school teacher and has a love of helping others. She also shares my love of travel, trying new restaurants, canoeing, being outdoors, being practical/planning, and being frugal. We’re only a few months away from getting married and nearly everything is all done for the wedding! 😉
Going along with getting married, I bought a house in late February 2016! Of course with a house, comes new expenses and new things one has to buy. It’s been an interesting process and expect to see some posts related to the house as well.
Finally, although my travels have slowed down, there is still a deep love of travel, how travel can change a person, and what people can learn from traveling. I’m looking forward to my and my fiance’s 2 week road trip in late July/Early August. We’ll be road tripping from Minneapolis to Portland, OR stopping at a few national parks along the way. It’s going to be about a 4,700 mile trip and should be fun to disconnect from work for awhile.
Well I suppose that’s all for now. I hope to maybe get my site header back and get going again on this site with new posts from time to time.
I have already discussed my experience upgrading to the new iPhone 3.0 OS. Now, I’d like to talk about the improvements Apple made in OS 3.0.
Back in January 2009, I wanted to upgrade my 2.5G phone to a 3G phone. As part of my switch, I looked for the best carriers and 3G phones. I eventually concluded that the iPhone 3G was in the best available 3G phone. In my iPhone 3G review, I commented that Apple’s lack of bluetooth functionality, support for voice dialing, and the exclusion of copy/paste were all functions that Apple got wrong with the iPhone 3G. Even with these feature limitations, I still came to the conclusion that the iPhone 3G was the best device on the market at the time.
In March 2009, Apple announced major feature updates to the iPhone OS that would fix the three things that I said Apple got wrong. Additionally, Apple added MMS, tethering, and searching to the list of features added to the iPhone. At the Apple Worldwide Developers Conference in early June the iPhone 3G-S was announced. As expected, the 3G-s would have better hardware, more memory, improved camera, and push notification. Besides those expected upgrades, additional features like video recording, turn by turn navigation developed by Tom-Tom, and more integration with Apple’s MobileMe service by allowing subscribers to “Find” through iPhone and to remotely delete any data on the device if it is stolen.
Those are some really interesting features to bring to the consumers’ reach because previously if you wanted the ability to remotely delete data you would have to own a blackberry or other enterprise class type device. Even then, you wouldn’t be able to remotely delete data yourself, you would have to call the company help desk for that. Apple also took one step closer to gaining business adoption of their device by supporting full disk encryption in OS.
In my iPhone 3G device review, I listed the things that “Apple Got Wrong” first, then discussed the things they “got right”. So for this article, I’m reversing the order and discussing things they “got right” first and then talking about where Apple missed the mark. My thoughts on what Apple got “right” and “wrong” will be from the perspective of a user running the iPhone 3G and not the newer iPhone 3G-s.
What Apple Got Right with OS 3.0:
1. Finally stereo bluetooth support! This was one of my major gripes. I have tried this feature out already. It rocks. The one thing I quickly realized though is that if you are listening to music over blue tooth, you must use the blue tooth headset’s volume controls to turn up or down the volume. I am lucky that my blue tooth headset has a good range of volume control. Some headsets may only have 3-4 ranges of volume.
Besides stereo bluetooth, according to the iPhone blog, the following other features were added regarding bluetooth support:
“– Peer to Peer. This is a big one, folks, but it’s a little strange. You can share files and talk to other apps over Bluetooth. This means you’ll be able to do multiplayer games, for example, or ‘beam’ your contact card from one iPhone to another. Or heck, play a trombone duet. No pairing is required, either. Discovery of other iPhones happens with Apple’s Bonjour ZeroConf autodiscovery protocols – Control Accessories. In addition to the dock accessory control, you can now control Bluetooth accessories from within an app. The example from the event was a glucose meter, but the possibilities are honestly endless.
-Tops on my Bluetooth list: Bluetooth keyboard support. Technically, you will be able to do with with iPhone 3.0. The weird issue there, however, is that this keyboard support would have to happen on an app-by-app basis instead of happening device-wide. That, friends, is a bit of a bummer.”
I have not been able to verify any of these other features as I don’t use them much. I’m not sure how well bluetooth file and contact transfer between non-iPhone devices will work.
2. Push notification. This seems like a no brainer. Before the 3.0 update, you would actually have to run an application in order for you to receive updates from that particular app. The problem with this was you could only run one app at a time. Therefore if you wanted the latest news you would have open your news app every time you wanted to check for updates. With the 3.0 update, if the application supports push notification, it will notify you if there are any updates.
I see this feature especially useful for email, news, and social networking apps like facebook. I have a feeling that developers are working fast behind the scenes to get their apps updated.
3. Copy / Paste functionality. I personally don’t find myself using copy/paste on my phone that much. Copy/paste was available on my last phone and I didn’t use it much there either. I think what is cool about this feature is that it is available system wide to any application. No additional development is needed within apps to take advantage of thisw feature. While I may not use this feature that much, I can see how it might be useful to other people.
4. Landscape virtual keyboard layout. If you are in the “Messages” or Email, you can turn your phone from portrait to landscape. The keyboard will be repositioned for you to type on a larger keyboard. I think this is one of those nice to have features, but it’s not make or break for most people. I am disappointed that Safari does not appear to have a landscape keyboard available. (Note to Apple: Please add in a landscape keyboard in Safari.)
5. MMS is supported! I admit, I am not the hugest text message user out there. But it would be cool from time to time to be able to take a picture with my phone and send it to someone. I might see something really cool and want to share that right away. I haven’t sent a MMS message yet because the AT&T network doesn’t “support” this yet. More on this in the things Apple got “wrong”.
6. Tethering. Again, I haven’t tried this one out…as you guessed it – it’s not supported by the AT&T network yet, but Apple says you can tether the iPhone to a computer and connect to the 3G network. I don’t actually see myself as using this service, although it would be cool to have on a long road trip. Also, I have read that estimated pricing for unlimited data and tethering will be $70.00 per month. That’s not cheap.
7. Updates to included applications. Apple improved the stock, weather, and safari apps. I am not going to go into too much detail here, but if you’re interested check out the entire walk through of the 3.0 update.
After reading my list of what Apple got right, you might be thinking to yourself, “Everything is perfect!” Unfortunately, now that Apple has gotten most of the basics right, there are still several major huge issues that need to be addressed.
What Apple Got Wrong:
1. Bluetooth support. You might be scratching your head with the inclusion of this on the list saying “but wait?!?! you said it was something they got right”. There are several things that need to be added to the iPhone’s bluetooth support. First, voice activated dialing over bluetooth. I still have not found confirmation that this is support in the 3.0 update. Secondly, I should be able to skip ahead to another track from the bluetooth headset. So far that isn’t possible, so even though I am able to listen to music over bluetooth, I still need to interact with the phone in order to skip ahead to a different track.
2. Voice activated dialing. If I owned the new iPhone 3G-s, I would have definitely called this something that they got right. I was extremely disappointed to find out that Apple did not support voice activated dialing with the iPhone 3G. This is something that would seem to be able to get done via a software update. Shame on Apple for doing this, but this feature alone will not convince me to pay $599 (I am not eligible for upgrade pricing to AT&T) for a 3G-s phone.
3. Failure to have all launch features available. I’m not sure here who’s more to blame if maybe this one should go to AT&T instead of Apple. I am disappointed that if I wanted to tether or send a MMS message I would have to use some hacks in order for these features to be available. I haven’t researched them yet, but this isn’t something I want to spend a bunch of time figuring out. (Note to Apple and AT&T: In the future, please have all launch features available especially in one of your biggest markets – the U.S.)
4. Screwing the iPod Touch users (again). Apple certainly has found a way to generate some revenue with these updates. First, thank you for letting iPhone users have a free download. It is probably mandated by the carrier agreement with AT&T. Now for the shady part. It turns out the second generation iPod Touch does have bluetooth hardware inside it! Now in order for you to take advantage, it appears Apple wants you to pay another $10 for this privilege. That’s pretty down right shady and sneaky way to re-tax your users.
Verdict: The negatives aside Apple has advanced its iPhone platform ahead plus MMS and tethering will eventually be available from AT&T. Apple will need to continually remain vigilant from the threats RIM, Microsoft, and Palm pose. It is my belief that they will do this through major software updates and less on the hardware side. I think what you are going to see in the coming months and years is the idea of software advancing features less about adding new hardware. This 3.0 update is the beginning of that trend.
The 3.0 OS update has given me new features on my iPhone 3G. I don’t have any plan to update to the iPhone 3G-s. If I do upgrade to a new iPhone, it will be at the end of my contract. In the end, this update was worth the wait and addressed some of my original complaints in my review of the iPhone 3G.
At Apple’s World Wide Developer Conference, it was announced that iPhone OS 3.0 would be available on June 17.
When June 17 finally came, I was excited to try out the new iPhone OS! I plugged my iPhone into my computer and set off to start the update process. The first thing I realized was that I needed to upgrade to iTunes 8.2. Ugh! I hate upgrading iTunes because it is a pain the ass. After about 20 minutes, iTunes is finally updated! Woohoo…I can finally start downloading the iPhone upgrade! Uh-oh..I keep watching my download…it’s going very slowly and keeps timing out. Hmmm…I’m never going to get this downloaded.
Something I should mention is that after the iTunes upgrade, the application told me to restart my computer. I still can’t figure out why after all these years I still have to restart a PC after I upgrade an application. It’s completely ridiculous. Anyways, I restarted my laptop and re-opened iTunes to start the download again. Ahhhh the download is finally moving! After about 45 minutes to download the 230MB update, I was finally ready to watch the upgrade install. Little did I know…
After the download completed, the upgrade process started. It started by backing up the device. What I didn’t realize is how long it would take. First off, while the backup was being completed there was a screen on the phone that said “Synchronization in Process” and other than that, the progress indicator within iTunes wasn’t very helpful in that it did not list a percent complete which would have been more helpful or at least gave me confidence that the upgrade wasn’t freezing up. The other thing that I didn’t notice was that every time I hit the slider to access the phone, I was actually canceling the backup process. When I finally read the screen a little closer, I came to this realization and said oops!
After I figured out not to leave the “Synchronization in Progress” screen, I began to wonder why the backup was taking so long. So I started google searching to see if any other users were reporting backups taking a long time to complete while upgrading to OS 3.0. Eventually, I found this C-Net article which described backups on the iPhone as taking a long time to complete. Now that I knew backups would take a long time to complete, I left my computer with the upgrade in progress for 30 minutes. I came back and waited an additional 15 minutes. After this 45 minute delay, the OS was finally being installed!
I noticed a series of reboots with the iPhone 3G. This process took about 5 – 7 minutes in total. Finally, a screen came up in iTunes that said the update was complete. Whew! I finally survived the upgrade process and didn’t brick the device. Unfortunately, by the time the upgrade finished it was 11pm at night and I needed to get some sleep. Playing with the new OS would have to wait until another day.
Notes to Apple:
1. If I access my phone during the upgrade, give me the ability to pause the upgrade and pick up where I left off.
2. Please speed up the backup process on the device (Maybe this has improved with the 3G-s)
3. Please let me update iTunes only and not require me to download iTunes and Quicktime through the software update
I saw and shared this on my google reader, but for those who don’t use google reader, I wanted to get this link out there and share it. Matt talks about his regret of not studying abroad in college. One of the reasons he cites is fear of “missing” things going on at home. Years later he still regrets not spending a semester abroad in another country, even though he has been traveling almost non-stop since 2006! He comes to the conclusion that when you return home from your time abroad that things pick up right where you left off.
One of the other things Matt indirectly brings up is the idea of having regrets. I think the quote by Mark Twain sums it up best for me:
“Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did do. So throw off the bowlines, sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.”
Don’t wait until later to do something you want to do. Make your best efforts to pursue those goals now.
I know several people going back to school right now. I hope that they consider spending a semester abroad as part of their graduate studies.
I saw this link on one of the message boards I frequent. Apparently the Senate wants to increase the home buyer tax credit to 15,000 and remove the income and first time buyer restrictions. Originally, when the stimulus bill was being considered in Congress, the first time home buyer tax credit was $15,000 in the Senate version and nothing in the House version. Through negotiations, the tax credit was watered down to $8,000 with certain restrictions.
Now apparently to encourage even more home buying the Senate would like to increase this tax credit back to the original $15,000! You got to love the government for trying. Personally, no tax credit is going to completely solve the problem with people losing their jobs, unable to meet their monthly obligations, and unable to easily get approved for financing.