Here are my purchases for this week.
- WPC: 3.24 shares @ $61.64 --- Yield 6.18%
- BBL: 4.87 shares @ $41.07 --- Yield 6.04%
- BP: 4.94 shares @ $40.46 --- Yield 5.93%
- SO: 4.73 shares @ $42.31 --- Yield 5.13%
Total capital invested is $800 ($200 in each company). The combined yield is 5.82%% and will add $46.56 to my yearly dividends.
$17,000 Forward Dividends/Interest
It's not really an even milestone like 10k, 20k, or 25k, but it still feels pretty good. I was just looking at my portfolio and noticed that the balance is now a shade over $410,000 in my taxable account. I have never climbed a mountain, but I'm sure the first few thousand feet probably are no big deal. You are energized, well fed, warm, and eagar for the journey. Confidence, drive, and desire are at peak levels!
No doubt as the climber reaches new heights, certain fears start to creep into his mind. Can I make it? Will fatigue take its toll and cause me to lose focus or worse make a critical mistake? Is the end game worth all the effort, risk, and time? Will a random weather event cause me to turn around or perhaps perish?
Right now I have roughly 14 years worth of living expenses ($30k/year) invested in the market (stocks and bonds). On top of that I currently have a job that allows me to save rought $100k per year. So in theory, I could have 20 years worth of expenses covered (assuming no increase in expenses) within another two years. I am currently 44 years old which means at age 46 I would have the next 20 years covered. That is assuming a 0% return. Realistically over the next 20 years a 2-3% interest rate isn't unreasonable and that would actually add tens of thousands to my withdrawals over that time period. $600k could actually result in $800k in expense coverage.
In addition I have approximately $250k in my 401k (65/35 Index 500/bond mix). Finally I would receive some unknown amount from Social Security at age 62 or later. I may have actually oversaved and just haven't realized it yet.
Right now $17,000 would cover just over half of one years expenses. In time this amount would increase along with the capital base, but it could also get cut int half (1973-1975, 2000-2002, 2007-2009). $410,000 (bird in the hand) or $30,000 a year from dividends ten years from now (2 in the bush).
Right now I am enjoying the view from my current location, but these are things that I have been thinking about recently. I might just relax for a bit here and catch my breath.
Keep climbing or accept that I may have already reached my destination?
This is NOT meant to be a downer post
Sometimes when you are in the heat of the battle, you lose track of the bigger war. I have been in full battle mode for many, many years and I don't think I realize how much progress that I have made. At the same time, if I stray too far from the castle, I could potential lose a lot of the progress that I have fought like a Mother Fucker to gain. The only difference is fighting at age 30-45 is much easier than fighting the same battle from age 45-60.
I am just documenting some of my recent thoughts.