2016 Year-End Performance & Goal Review
Beginning 2016 Account Value: $158,053.76
Ending 2016 Account Value: $224,302.38
Dividend income in 2016: $4,858.55
Forward 12-month dividends: $5,442.09
Options income in 2016: $1,125.65
Total lifetime dividend income: $14,167.12
Post-tax salary: $120,977.63
Effect of dividend increases: $340.96. This is equivalent to investing just over $11,360 at a 3% yield.
Goals for 2016:
1) Retirement Accounts – PASS
I fully funded my Roth IRA in April. Since I anticipated making too much to fund a Roth directly I instead contributed $5,500 to a traditional IRA, invested in PGX for about a week, and then did a Roth IRA conversion. I also thought I was going to be able to start contributing to a 401(k) in July, but, as an associate, turns out I’m not eligible for the 401(k) quite yet.
2) Generate at least $6,500 a year in dividends – FAIL
Total dividends generated in 2016 were $4,858.55. However, I also made $1,125.65 in options income making my total income $5984.20. This was still very short of $6500. I attribute missing this goal to choosing to invest more in growth stocks which do not pay a dividend (I’ll talk about these below) and the higher expenses associated with moving to a different state and starting a new job.
3) Concentrate on core companies and selectively invest in riskier growth companies – PASS
This year I invested $11,881.97 in five microcap companies (mostly biotech and mining, including one invested in the Toronto Stock Exchange in Canadian dollars). These have done great so far and are currently worth $23,816.56. Despite not making my dividend goal, I feel the capital gain benefit of these microcap investments has more than made up for it! I’m going to be continuing with this theme of investing in growth companies throughout 2017 as well.
I also increased my investments in a few of my core companies that were the best valued, including Amgen, Emerson Electric, and Nestle.
4) Improve Two Investing content with guest posts – PASSish
Well, I got Johnny to write one post this year! So, I’m giving myself a pass on this one. I’m hoping for at least two posts for Johnny in 2017. Unfortunately, I didn’t get my brother to do a guest post yet, but I’m hoping he’ll do one in 2017. He actually brought up the topic to me so I know he’s thinking about it.
5) Set aside cash for use during market downturns – PASS
I wanted to have a little extra cash on the sidelines for use if the markets dropped. I did this by investing my extra cash in PGX (earning about 0.5% a month in dividends). I also had the help of an increased salary in a new job to provide a little more cash with which to invest.
6) Improve online presence – Mixed success
A) PASS. I received $117 in April 2016 and received $113 through the end of December 2016 solely from Google Adsense. This has increased by people like you reading my posts. So thank you! It also helps that one of my most popular posts is the dividend and options investing spreadsheets. According to Google, there are 7034 people that have used my templates on Google Sheets. Many of those people are going to the corresponding posts to ask questions and see how they work. I also had a few people contact me asking to place paid ads/ sponsored posts. I’ve decided not to go that route. The Google Adsense revenue is used to pay the hosting fees for the twoinvesting.com site.
B) FAIL. I had 23,132 visitors in 2015 and 27,356 in 2016. My goal was 30,000, so this is a fail, but the trend is still good. I also increased views from 53,782 to 64,674.
D) FAIL. I wrote 34 posts in 2016. Still averaging more than one post per month, which is the bare minimum in my opinion. It would definitely be helpful to get some help in this regard from Johnny.
How’d you guys do for your 2016 goals? I’m looking forward to sitting down over the next couple days to think about goals for 2017. In the meantime…Go Packers!!