Sunday, December 30, 2018

2018 in Retrospect and 2019 Goals

2018 has been spectacular in terms of dividends. The biggest surprise was my Roth IRA. This was my first year investing in Roth IRA. One of the funds I chose was Vanguard Wellington Fund (VWELX). It’s an actively managed fund with exposure to stocks and bonds and hence well suited for IRA. VWELX had a huge distribution in Q4 and bumped up my overall IRA dividends for the year (18.25%). I ended up with $1,560.84 in dividends for 2018. That's a 169.79% increase in dividend as compared to 2017.


2018 Goals
My first goal of two additional mortgage payments never materialized. There are two of reasons for that. Firstly, I did an analysis on additional mortgage payments and came to a conclusion it was not the best strategy. Secondly, as a part of relocation for the new job we ended up selling our home.

My second goal of $400.00 in dividends in a single quarter happened in 2018 Q4. Given that I have a taxable and non-taxable account, I am going to classify this goal as $400.00 in taxable dividends. I got $424.07 in taxable dividends in 2018 Q4.

My third goal was $1,500.00 in forward dividends (taxable). This goal was achieved in 2018 Q4. A bit surprised here as I kind of expected to achieve it earlier. My forward dividend as of December 30th is $1,512.61.

My fourth goal was to achieve 4,160 vitality points. I was able to ace this goal and got 14,820 vitality points. This is equivalent to $148.20 in Amazon gift cards.

I received $3,217.12 in passive income. Even though it’s not a goal I am very happy with this achievement. I also added a new source of passive income. I now sell covered calls using my long-term ETF positions.

2019 Goals
I set myself a long term goal of being financially independent by 2032. I am currently at 8.059% of this goal. Working backwards I would need to add another 6.646% to this goal by end of 2019. So, my goal for 2019 is to reach 14.705% of my target.

In terms of forward dividends I barely managed to reach my 2018 goal of $1,500.00. However, I am sticking with an aggressive goal for 2019 of $3,000.00. This would be $250.00 in dividends per month (awesome!). Given the huge drop in stock market I believe this target is reachable.

I have also set myself a goal of $800.00 in taxable dividends in a single quarter. Again a very aggressive goal, but something I might be able to achieve. This would definitely be a stretch goal.

With my new job I no longer have access to the vitality program. So, no vitality related goals for me this year. In terms of side hustles I am going to aim for 50% of my 2018 side hustle income. So, my side hustle goal for 2018 is $750.00.

How was 2018? What are your goals for 2019?


6 comments:

  1. Congrats on reaching your goals! I have also been thinking about making additional mortgage payments, but with the current interest rate (below 1 %) it just doesn't make sense. Even though you have a bit higher rates there, I can understand why you did not make those extra payments.

    Your 2019 goals look really ambitious too, which is a good thing! I'll try to set much harder passive income goals for the next year too.

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  2. nice geek

    Just awesome that you achieved your goals. I agree those 2 extra mortgage payments may not be the best use of cash currently, so not a bad one to miss.

    You had a busy year this year. Nice looking goals for next year.

    Aiming high and missing is better than aiming low and hitting.

    keep it up, happy new years

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  3. Nice work DivGeek - agree missing the mortgage repayment goals probably turned out to be wins in the end! Keep those dividends growing in 2019, hope it's a good year for you.

    Cheers, Frankie

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  4. Hey Geek! Happy new year and best of luck on all your goals in 2019.

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  5. Great job this year, Dividend Geek! Reaching over $1,500 in dividends is an amazing accomplishment. Nice yoy growth as well. Looking forward to your 2019 results. As for my year, I was able to come close to most of my targets. I'm hoping to earn at least $670 from dividends in 2019 and increase the forward dividend income to at least $800. Good luck with your goals this year!

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  6. Congrats on finishing the year strong Geek and good luck with your 2019 goals. I noticed that you decided against adding two extra payments to your mortgage. I'm faced with a similar dilemma. I'm going through my goals for 2019 and I'm trying to decide if I should pay off my mortgage early. Part of me feels that I should and so I'm reassessing if I can both a) pay down my mortgage early AND b) invest. We will see.

    But, in any case, I'm just looking forward to following your progress in 2019.

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