I wake up early for once (9:45AM)…. Beautiful sunshine today in Montreal. I am waiting for my Swarovski jewelries delivery. I guess it should be for today so I am staying home and I personally do not mind at all but I may escape later on today. I have all that laundry to do still waiting for me. I have a few Web projects I want to work on it. So I guess this is the best time! Especially I am very close to my payout in one of my online earning program. While working yesterday, I work on my budget and I came alone with those:
If things remain the same, my yearly income, before taxes, will be of around 35 000$. Not much, but if I exceed this amount, it will be very bad for my taxes, especially knowing that for this year, I can only contribute to max around 7 000$ to my RRSP.
35 000$ - 7 000$ = 28 000$
At 28 000$, I won’t have to pay too much in taxes, it should be just like for this year. And I may earn less than 35 000$ actually, this in just a big average including my 2 jobs and my dividend earnings. As salary, I earn around 31 000$ after taxes. Not much either, but check it out…
Roughly, let’s say that my monthly expenses are at 1 200$ per month.
For 12 months: 14 400$
31 000$ - 14 400$ = 16 600$
This is leaving me a nice 16 600$ to invest. My latest investment in Corby Distilleries (CDL.A) really did the job, in the sense that it calms my appetite for trading for a little while. With this one, my portfolio is feeling kind of complete. But what’s not complete is my dividend income. So I guess I don’t have other choices than to continue right?
Here are some ideas I came with to where to invest in order to increase a bit my dividend income, but also to increase my portfolio value:
200 units of ENF.UN
Investment value: around 3 000$
New dividend earned: 230.40$
200 units of PGF.UN
Investment value: around 2 100$
New dividend earned: 168$
100 stocks of ECA
Investment value: around 3 400$
New dividend earned: 100$
100 units of JE.UN
Investment value: around 1 400$
New dividend earned: 144$
300 units of DHF.UN
Investment value: around 6 000$
New dividend earned: 552$
New dividend + current dividend (excluding the ones earned inside RSP)
1 194.40$ + 4 229.47$
= 5 423.87$
By the end of 2011, I hope to have an increase of close to 1 000$ in dividend income. But if I do so, this mean I won’t pay anything extra on my debt, because all extra money earn will go for my investment. So what’s the plan for 2011? Paying debt or dividend investment? It will all depend of the feeling I will have at that time. But I always consider paying debt as being extremely boring and I may just continue my investment journey.
Think about it:
100 000$ assets (it should be reach by the end of 2010) + 16 600$ (new investment money for 2011) + 1 000$ (new dividend money) + 4 229.47$ (current dividend money outside RSP) + 100$ (let’s say, an extra earn from the DRIP) + 324.22$ (current dividend money inside RSP):
122 253.69$
And 2010 is not even over yet! For August-December 2010 period, I guess I will have a 5 000$ available for investment. Those new investment will bring more dividend in. Maybe 200$ or 300$?
So let’s add a 300$ to the 122 253.69$
= 122 553.69$
That’s nice, but we are not done yet! Why? Well, because of the increase of the value! Here, I will add a reasonable 6%: 7 353.2214$
122 553.69$ + 7 353.2214$ =
129 906.91$
This is just an overall scheme for what could happen for 2011, I may not invest at all in those companies. But it’s nice to get a big picture idea, just to see where dividend investment can bring me at. It doesn’t take that much money to make great investment. In my current condition, I can support my living and my investment project. Dividend investment is affordable to any kind of investor, even while living under 40k per year.
This is kind of a funny game actually. Ok, we saw it for 2011. Let’s repeat the same exercise until 2015 if you don’t mind. Let’s add 16 600$ in new investment money and let’s add a 1 000$ new dividend income per year, until 2015.
For 2012:
129 906.91$ assets + 16 600$ (new investment money for 2012) + 5 329.47$ (dividend money outside RSP) + 324.22$ (current dividend money inside RSP):
152 160.60$
6% increase value = 9 129.64$
152 160.60$ + 9129.64$ =
161 290.24$
For 2013:
161 290.24$ assets + 16 600$ (new investment money for 2013) + 6 329.47$ (dividend money outside RSP) + 324.22$ (current dividend money inside RSP):
184 543.93$
6% increase value = 11 072.64$
184 543.93$ + 11 072.64$ =
195 616.56$
For 2014
195 616.56$ in assets + 16 600$ (new investment money for 2014) + 7 329.47$ (dividend money outside RSP) + 324.22$ (current dividend money inside RSP):
219 870.25$
6% increase value = 13 192.22$
219 870.25 + 13 192.22$ =
233 062.47$
For 2015
233 062.47$ in assets + 16 600$ (new investment money for 2015) + 8 329.47$ (dividend money outside RSP) + 324.22$ (current dividend money inside RSP):
258 316.16$
6% increase value = 15 498.97$
258 316.16$ + 15 498.97$ =
273 815.13$
So this drives us to 2015, with a total of 273 815.13$ in assets and 8 329.47$ in dividend earned… Those calculations do not consider dividend payers increase. Dividend payments increase over time, so I probably be at more than 8 329.47$ in dividend income in 2015. Also, the current scheme does not include any debt payment, as you may have notice… So will I be free by 35? Not if my income do not increase. If my situation remains the same, I could be free by 40. But not 35. Anyhow, this was pretty fun! The earlier you start the investment game, the better it is!
If things remain the same, my yearly income, before taxes, will be of around 35 000$. Not much, but if I exceed this amount, it will be very bad for my taxes, especially knowing that for this year, I can only contribute to max around 7 000$ to my RRSP.
35 000$ - 7 000$ = 28 000$
At 28 000$, I won’t have to pay too much in taxes, it should be just like for this year. And I may earn less than 35 000$ actually, this in just a big average including my 2 jobs and my dividend earnings. As salary, I earn around 31 000$ after taxes. Not much either, but check it out…
Roughly, let’s say that my monthly expenses are at 1 200$ per month.
For 12 months: 14 400$
31 000$ - 14 400$ = 16 600$
This is leaving me a nice 16 600$ to invest. My latest investment in Corby Distilleries (CDL.A) really did the job, in the sense that it calms my appetite for trading for a little while. With this one, my portfolio is feeling kind of complete. But what’s not complete is my dividend income. So I guess I don’t have other choices than to continue right?
Here are some ideas I came with to where to invest in order to increase a bit my dividend income, but also to increase my portfolio value:
200 units of ENF.UN
Investment value: around 3 000$
New dividend earned: 230.40$
200 units of PGF.UN
Investment value: around 2 100$
New dividend earned: 168$
100 stocks of ECA
Investment value: around 3 400$
New dividend earned: 100$
100 units of JE.UN
Investment value: around 1 400$
New dividend earned: 144$
300 units of DHF.UN
Investment value: around 6 000$
New dividend earned: 552$
New dividend + current dividend (excluding the ones earned inside RSP)
1 194.40$ + 4 229.47$
= 5 423.87$
By the end of 2011, I hope to have an increase of close to 1 000$ in dividend income. But if I do so, this mean I won’t pay anything extra on my debt, because all extra money earn will go for my investment. So what’s the plan for 2011? Paying debt or dividend investment? It will all depend of the feeling I will have at that time. But I always consider paying debt as being extremely boring and I may just continue my investment journey.
Think about it:
100 000$ assets (it should be reach by the end of 2010) + 16 600$ (new investment money for 2011) + 1 000$ (new dividend money) + 4 229.47$ (current dividend money outside RSP) + 100$ (let’s say, an extra earn from the DRIP) + 324.22$ (current dividend money inside RSP):
122 253.69$
And 2010 is not even over yet! For August-December 2010 period, I guess I will have a 5 000$ available for investment. Those new investment will bring more dividend in. Maybe 200$ or 300$?
So let’s add a 300$ to the 122 253.69$
= 122 553.69$
That’s nice, but we are not done yet! Why? Well, because of the increase of the value! Here, I will add a reasonable 6%: 7 353.2214$
122 553.69$ + 7 353.2214$ =
129 906.91$
This is just an overall scheme for what could happen for 2011, I may not invest at all in those companies. But it’s nice to get a big picture idea, just to see where dividend investment can bring me at. It doesn’t take that much money to make great investment. In my current condition, I can support my living and my investment project. Dividend investment is affordable to any kind of investor, even while living under 40k per year.
This is kind of a funny game actually. Ok, we saw it for 2011. Let’s repeat the same exercise until 2015 if you don’t mind. Let’s add 16 600$ in new investment money and let’s add a 1 000$ new dividend income per year, until 2015.
For 2012:
129 906.91$ assets + 16 600$ (new investment money for 2012) + 5 329.47$ (dividend money outside RSP) + 324.22$ (current dividend money inside RSP):
152 160.60$
6% increase value = 9 129.64$
152 160.60$ + 9129.64$ =
161 290.24$
For 2013:
161 290.24$ assets + 16 600$ (new investment money for 2013) + 6 329.47$ (dividend money outside RSP) + 324.22$ (current dividend money inside RSP):
184 543.93$
6% increase value = 11 072.64$
184 543.93$ + 11 072.64$ =
195 616.56$
For 2014
195 616.56$ in assets + 16 600$ (new investment money for 2014) + 7 329.47$ (dividend money outside RSP) + 324.22$ (current dividend money inside RSP):
219 870.25$
6% increase value = 13 192.22$
219 870.25 + 13 192.22$ =
233 062.47$
For 2015
233 062.47$ in assets + 16 600$ (new investment money for 2015) + 8 329.47$ (dividend money outside RSP) + 324.22$ (current dividend money inside RSP):
258 316.16$
6% increase value = 15 498.97$
258 316.16$ + 15 498.97$ =
273 815.13$
So this drives us to 2015, with a total of 273 815.13$ in assets and 8 329.47$ in dividend earned… Those calculations do not consider dividend payers increase. Dividend payments increase over time, so I probably be at more than 8 329.47$ in dividend income in 2015. Also, the current scheme does not include any debt payment, as you may have notice… So will I be free by 35? Not if my income do not increase. If my situation remains the same, I could be free by 40. But not 35. Anyhow, this was pretty fun! The earlier you start the investment game, the better it is!
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