It's finally 2018 and I'm excited to kick this year off with some massive growth goals for my portfolio! This is going to be a very challenging year for me since I'm going to be setting some very aggressive goals for myself. I really want to set stretch goals to force myself to really dig deep to accomplish the insane goals I'm going to be setting.
This year is going to be all about maximizing my savings potential and shuttling as much capital into the market as I can. I'm going to try super duper hard to keep my month to month expenses around the $2,000 - $2,500 mark. This is going to be extremely important in order to hit my goals that I'm setting for the Independence Fund.
Without further ado, here are the goals I'm setting for 2018!
I'm going big this year and I want to achieve a total portfolio value of $100,000 by years end. From where I currently stand this represents and increase of $46,000! I was able to achieve an Impressive $34,000 increase last year and this year I'm going to hit it out of the park with the extra $10K by years end. Lets break down the numbers.
I'm going to have to achieve an average portfolio growth of $3,833 month to month. I still don't know how I'm going to be able to make this possible but I'm going for it. My account now generates close to $2.3 in dividends per year. If I subtract that and also give me self a healthy portfolio growth average of 10% that will put me at $7,800 in investment income working towards my goal. That leaves me with a whopping $38,000 still that's going to be up to me to save. I'm not going to try to wrap my head around it any further but something deep down inside of me tells me I'm going to be able to accomplish this goal.
Next up is my overall annual dividend income. Obviously this one is going to relate to my overall portfolio value and I'm still going to set the bar high at a goal of $4,500 by years end. This represents an Increase of $2,243. This is going to be extremely doable if I'm able to obtain my over all portfolio value target. I also have my eyes set on a few higher dividend yield companies that will allow me t dip my toes into the higher risk vs reward pool. I'm still very young and I can afford to take the extra risk especially since the economy has made a 180. I feel that now is the time t make the hey while the sun is still shinning so I will be putting more capital into more risk tolerant funds to further help boost growth and yield. I have already started to do this a bit towards the end of last year and it is proving to be very stable and successful so far
Part of this risk I have been taking is jumping into companies such as WHF, MAIN and NRZ. They have higher yields and are riskier in a down economy but for now I'm not going to be worried about if the economy goes south since this year should prove to be an exceptional one for market growth.
I also am setting a massive goal of increasing my total portfolio holdings to 40 companies. Why would I want add 16 more positions to my portfolio? Well, first off is diversification. It has proven to me that diversification is key in life and why not continue to add great paying dividend companies into my portfolio? Second is dividend payment frequency. Currently I sporadically obtain dividends and they aren't to well spread out. It's not super important right now but I would like to have a more consistent month to month dividend received schedule. I'm going to do this by investing in more monthly paying dividend companies such as MAIN, STAG and O. This will help balance out my monthly income and will further help to snowball my dividend income to achieve my over all yearly goal.
The more and more I learn about monthly paying dividend companies the more and more I want to dive right in. Investing is all about compounding those returns and why wouldn't I want to compound my dividends on a month to month basis rather then a quarterly basis? Now, I'm not saying that I'm going to sell my whole portfolio and contain only monthly paying dividend companies but it wouldn't be a bad Idea for me to beef up my monthly paying dividend holdings since I currently only have MAIN. Keep an eye out for my next few dividend investments as they will most likely be a monthly paying dividend company.
That concludes all the personal portfolio goals I have set for my fund this year. Hopefully I set these goals high enough and I haven't left anything major out. I have set some personal life goals also but they aren't anything new since I don't really care about setting resolution goals for the year. I will continue to carry out my lifestyle goals and this investment blog really helps me keep on track with my financial life goals. for the people wondering my life goals however, I'm going to continue my strict gym regime and keep packing on that muscle mass. I have set an overall physical weight goal of 200 lbs with a body fat percentage of 8%. I still have a few years to go as I have only been able to put on about 1lbs of muscle per month. As for more personal life goals, I want to continue to read the bible and grow in my faith and continue home improvement projects to increase the value of my home.
As I look for new ways to diversify and grow my Fund, I can't help but love it more and more as the days go by. I have also started to dip my toes into the wild world of cryptocurrencies and I'm going to play with these for a bit. I won't be adding any more capital into them as they feel much like penny stocks.I did start the year off with a small allocation of funds that I have managed to grow quite considerably already.
I've really grown fond of the fact that I have so much extra capital to my name that I can tap in the event that I needed to. I'm going to really put my best foot forward and try to grow this thing as much as possible this year and I hope by years end I will be able to report that I have hit all of my goals!