Everyone has a method and goals to what they are doing.
I started keeping track of my IRA here after reading The Single Best Investment as a way to show that dividend investing
over time will beat the market, and that you don't have to be a number crunching rocket scientist to do it.
My firm belief is that given time any average Joe can do it.
My goal was to be able to withdraw $1000 a month after taxes when I was eligible in 2014. I figure our tax rate will be 15%.
After that I wanted to be able to withdraw 5% more from income each year.
Here is Jan. 1st 2010:
Current Value.... Prior Value....... Period Change.. %Change. Estimated Income.. Estimated Yield
$178,517.66..... $169,327.61......... $8,841.90......... 5.2%..... $10,844.80................. 6.1%
I would need to increase my income to $14,120.
With a 7% annual increase in dividends I would have $14,215 in 2014.
Getting an average 7% increase from stocks with an average yield of 6.1% wasn't going to happen imho.
To invest the IRA in stocks with larger increases was going to cut down on the current income and cause the
yearly increases to have to be even larger.
A few stocks like BP, SYY, WM, and others that didn't deliver would make it impossible to meet my goal.
Income needs to be:
2014 $14,120
2015 $14,825
2016 $15,350
2017 $16,110
2018 $16,915
End of 2012 estimated income: $17,371.32. BOX recently lowered this by $660.
With the wife deciding to keep working ( could be the $750 a month I insist she takes for her own account :) )
I don't see us starting withdrawals until 62, 2017, so I have an extra year built in with current income.
Now it is time for stage two. Stocks with expected over 5% dividend increases. Hence my list, many stocks
with yields I would not consider before.
At this point income taking a hit in the short term will not matter. The end justifies the means.
I'd like to end the year above the 2018 goal of $16,915, and keep it there, but we'll see. |
