Wednesday, December 23, 2015

Time off & Happy Holidays

I've taken the last two weeks off from work spending some good times with family and friends in North Carolina. It has been quite a busy year in terms of my work, family life and investing so it is good to take a breather or two and reflect on the year. 

So far, the trip has been very relaxing. I don't have my computer. (I’m typing this on my phone so this won't be a long update.)

The trip was paid way in advance so we are essentially paying ½ price for the plane tickets. As you know, my wife also bought our advance tickets for our trip to Asia. 

This year, my son is getting more interested in investing. I will definitely try to expose him to the basics of long term investing in 2016. Compounding is still a difficult subject for him to grasp. So I have to take it slow. 

In terms of total investments this year, we've invested close to $110k of fresh capital (~80k taxable, 18k 401k, 11k Roth and IRA). A lot of money - yes. Hopefully, this will plant the seeds of future income. If we just estimate using a simple 3.5% yield and 6% growth, this means we will get around $4k per year that will double in around 8-10 years. 
I don't know if we can repeat this level of investments for 2026. I will try. 

Overall, I am happy with the progress of my portfolio though the portfolio total is slightly down by a few percent based on the market. The income is stable and is slowly rising. This is based on how much I invest and on which companies I invest in. The trick here is not to focus on the portfolio value initially but the growing income from the investments. At times, this can be difficult, but if my analysis is correct, my paper losses will get smaller every year. After 10 years, my portfolio should be quite robust assuming I invest in high quality companies. (I just bought some MMM this week.)

Anyway, 2015 is just the first steps of many. I will need to stay focused on the goal at hand and ignore the noise. 

It is good to be away from work - the last few months were hectic. We managed to complete our goals and deliver what we promised. I am sure 2016 will continue to be busy. Hopefully, this will be reflected in the bonus (which I will invest). The time off made me think though about retirement. I will need something to keep me occupied. 

Anyway, when I get back to my computer, I will write up the results from December and the year. 

For now, I wish all my readers a merry Christmas and a prosperous new year.


  1. Always nice to take time off to re-charge the batteries. Of course, it is a bonus to be able to see and hang out with friends and family in the process. :)

    Awesome to hear you put all that capital to work for your family this past year! Those seeds you planted this year should reap you many fruits down the road. Keep up the momentum.

    Cheers to keeping the pedal to the medal in 2016! AFFJ

  2. Merry Christmas Div Son, enjoy your time off!

  3. Thanks DivChimp! Merry Christmas and Happy New Year!

  4. Wow, $110k in fresh capital invested. This is a serious sum. Are you able planning on adding at this level every year or was this a one-time investment to get the portfolio rolling?

    1. Investment hunting,
      My plan is to invest at least 1k per week in the taxable acct and max out the 401ks, Roths and IRAs. I was lucky in 2015 when I had extra income come in.