Back in February when I started this website, I mainly focused on the Independence Fund and tracking the results I achieved on my way towards my Financial Freedom. This was really strictly through my dividend growth and income. After a lot of though I realized that I really created this website to track my whole journey towards Financial Freedom. I figured, why wouldn't I be tracking the growth and Dividends I've received from my 401K also?
Although I have really stopped focusing on my 401K and have adopted a mindset of set it and forget it, I really want to keep track of the growth and dividends that are reinvested into the account just like a DRIP account.
The money I have saved in my company sponsored 401K is still going to be used down the road when I will be able to withdraw it penalty free at the age of 59.5. I only contribute a mere 5% of my pretax income which, is way below the 15% threshold that is recommended to have a sizable nest egg by the time one wishes to retire at 65. My company graciously matches 100% of my pretax income up to a maximum of 5%. It would be stupid of me to not take advantage of this offer since it is free money that would be left on the table.
I have given it the thought to take that 5% and add it to my Independence Fund every paycheck but factoring in that the money is all pretax and I would be losing out on the 5% matching it doesn't really seem to make much sense for me to do that move. Another great factor about contributing to my 401K pretax is that it reduces my taxable income by a nice amount every year it and boosts my tax return by a pretty decent amount every year.
I'm going to be including in my monthly portfolio recaps any dividends received from my 401K and also including a new section in my dividends received page to keep track of all dividends received and any growth that is achieved through the years.
I'm also going to be updating my dividend received page and portfolio page with a new spreadsheet to better keep track of my progress. I'm currently looking at using google sheets but If anyone has any programs, or advice on this i'm open to feedback. I'm really trying to achieve a cleaner and more professional look to my pages.
To start off my dividends received in my 401K this year. The month of September I received a payout from two of my holdings
09/19/2016 VANG SM CAP IDX INST $6.84
09/16/2016 VANGUARD INST INDEX $21.73
Combined Total: $28.57
With these dividends received in September it has truly been a great month for dividends! In my $100 Dividends received article for the month of September, it has truly been a great month!
Total Dividends received for the month of September: $131.51
It's going to be a few months till I see another great month like this. But down the road I'm going to look back at these articles and be like man, this was the first month I broke the $100 mark and now I'm breaking the $1,000 mark! It gets me super excited to even think about that milestone but I know I will be there one day soon.
How did everyone else's month go? Did you receive any dividend payouts?