Tuesday, August 27, 2019


It has been 3 years since my last update.  I had decided to scale down on blogging and focused on generating additional income. The goal was to increase future passive income and reach financial independence.

After 3 years, my yearly passive income covers most of my expenses. 

Passive Income Breakdown:

Post Tax:
CDs & Others = $17.7k
Investing Account = $6.5k
Others = $2k

Pre Tax:
401k (1) = $15.5k
401k (2) = $6k
Rollover (1) = $3.5k
Rollover (2) = $1.5k

Basically, more than $50k passive income.

Now, I am at a crossroad. I can either go full blown FIRE or continue work. If I do work, it will definitely be on jobs that I want to do. I also notice that with FIRE, my strategy going forward must change. Now, I need to look into Safe Withdrawal rates and the import of Sequential Risk. 

While I think dividend growth investing is a pretty good strategy, I also realize that index investing can also work quite well. DGI works really well if you reinvest your dividends, but if you start using the dividends for your daily expenses, then the growth will be simply based on dividend growth and capital gain. Also, my experiment with a market wide index showed that my index fund had similar gain and sometimes outperformed my basket of DGI stocks. 

There are additional strategies such as leveraging/rebalancing taxable income so that you qualify for the subsidies of the Affordable Health Act. Moreover, to access pre-tax investments, there are tricks using Roth Conversion ladders since I have many years until 59 1/2, and my pre-tax pool is quite large.

Anyway, I'm done for today. Maybe a few more years until my next update!

Also, I fixed my spreadsheet tool.


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