Yes, actually, you read that correctly. We expect to get $41,500 on the negative
Income in 2020. Wow! It’s as if we have an imaginary member of our family who works hard and helps us achieve our goals. We’ve only been on our financial journey for six years, and it’s amazing to expect such a comeback in 2020.
In 2015, we made our first investment in dividend stocks, and then set our first financial goals for 2016. It was a first step, and we didn’t know where it would take us. Start your journey and the results will come! When it comes to personal financial goals, no one cares more about your money than you do.
I would like to thank 2019 because it was very good for us. We almost completely achieved our goals, but as they say, if you have everything under control, it means you’re not moving fast enough. We’ve traveled a lot this year – from Orcas Island to Orlando to an Eastern Caribbean cruise. Thanks to our passive income streams, we stay on the path to financial freedom, even while spending money on vacation.
Let’s review how our 2019 performance served our financial goals. We’ve put them here.
2019 in review:
We earned $11,278 in profits, exceeding our target by $778. We exceeded our dividend income target mostly due to Genworth MI Canada’s (MIC) special dividend. MIC paid us a $784 dividend that exceeds its normal distribution by 5.83 percent. The current yield of MIC is 3.81 percent; However, taking into account increasing dividends and reinvesting dividends over time, our yield was 5.83 percent. This is amazing! We are about to have a monthly income of $1000 from just profits.
We benefited $16,375 From our investments in private real estate loans.
Our investment in Lending Loop resulted in a return of $2,328, well above the $2,040 we expected.
Credit card cash back rewards totaled $1,397; However, we must keep an eye on our spending, as our extended vacation has contributed significantly to this figure.
Our income from rental properties was a negative number (– $3444) Because we refinanced one of our condos. We have borrowed money against our properties, which has brought this number into negative territory; However, it was offset by income from private mortgages.
So, all in all, our 2019 income was passive $27,934.
This is amazing! We did nothing to get nearly $28,000. Although the amount was $2,000 less than we expected, I am very proud of our accomplishment.
Simply reinvesting $28,000 will make you a millionaire within 15 years, but we will accelerate that growth by investing more in income streams that generate passive income.
Looking forward to 2020:
Dividends of $13,000:
Our current expected income from dividends is $11,140. This number does not include the dividend increase in 2020. I assume some of our holdings will increase their dividends despite the uncertainty in the market right now. Combined with the DRIP I would appreciate the organic increase as of $400 In 2020.
We will maximize our TFSA contribution next year. The TFSA limit is $6,000 in 2020, so the total limit for my wife and I is $12,000. Taking a conservative 3.5% profit on $12,000 will produce results $400.
To compensate for receiving income from real estate, we will deposit $15,000 into our RRSP accounts. By doing this, we avoid paying taxes on income from real estate. At a rate of 3.5% that would add approx $525 To profits.
As a result, all expected earnings in 2020 will amount to $12,465.
We will challenge this goal with a stretch goal of $13,000 in profits. This can be achieved by allocating additional capital to dividend-paying companies.
Real estate $25,000:
This estimate includes rental property income and investments in the private sector
Mortgages.
Lending episode $2,500:
For more diversification we have Lending ring portfolio, we plan to increase our
investments, and as a result, we expect a profit of $2,500.
$1,000 Credit Card Cash Back Rewards:
Assuming that our spending rate will be lower than in 2019, it is reasonable to expect cash back rewards of approximately $1000.
We expect our income to be passive $41,500 In 2020.
