My income statement - Page 38
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Thread: My income statement

  1. #371
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    Quote Originally Posted by CalgaryPotato View Post
    I ... don't agree that equating anyone that has a mortgage and does investing as being the same thing as doing leveraged investing.

    If the idea is that your house should be paid off before you start putting any money away, doesn't that make pensions a bad thing (they are forcing a 10+% savings regardless of your financial situation)
    If the shoe fits...
    I think it's fruitful to think of it, periodically, as leveraged investing, and see if that adds a useful perspective. Of course, leveraged investing is not bad per se...it's only bad if you aren't self-aware about it or don't have the stomach for it. (I say this as someone who has kept a mortgage around for close to a decade after not needing it, and while hardly significant now, it helped accelerate me to financial independence faster. Am I a leveraged investor? You bet. Is that necessarily bad - no.)


  2. #372
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    Just got caught up a little bit on this one, nice thread and great concept. I also track what I call "potentially sustainable portfolio income".
    Rather than actual income earned, I update the current annual dividend payouts of all my holdings, so it's a bit more forward looking. Basically, what could I expect to earn in a year with what I currently have.

    I also factor in the prior calendar year's option income (since that's a bit more volatile). In theory when that total income number is high enough, I should be able to call it quits!

    Good luck on your journey, I'll be following more regularly from now on

  3. #373
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    Haven't followed the entire post, but did read several replys. Going back to your initial statement:
    "My main investment goal is to boost my "passive" income over time, so I'm going to try to post monthly charts showing the growth in my portfolio income. My strategy includes long positions in dividend paying stocks, covered call writing and cash secured (or margin secured) put writing. Going forward I'll adjust my strategy as I see what works and what doesn't, and as I learn more about options and the market in general."

    Like your overall goal, but why not simplify the process as you are young, busy, have changed jobs, etc.
    - Establish a set of criteria for the type of stocks which will help to achieve your long term goal
    - Research and make a list of stocks meeting your criteria
    - Invest regularly in those stocks over time
    - Try to buy when they are value priced (as you've already done with your calls to buy)
    - Re-invest the dividends, unless you would prefer to let the accumulate and buy at your choice
    - Don't sell any of your holdings, unless a stock falls off your initial criteria of a good stock, hold for the rising income
    - You don't need to look at other stocks, just the ones you've identified
    - Ignore market adjustments, as in 2014, which just create buying opportunities

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  5. #374
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    Quote Originally Posted by houska View Post
    If the shoe fits...
    I think it's fruitful to think of it, periodically, as leveraged investing, and see if that adds a useful perspective. Of course, leveraged investing is not bad per se...it's only bad if you aren't self-aware about it or don't have the stomach for it. (I say this as someone who has kept a mortgage around for close to a decade after not needing it, and while hardly significant now, it helped accelerate me to financial independence faster. Am I a leveraged investor? You bet. Is that necessarily bad - no.)
    I see where some people are coming from in terms of looking at holding mortgage debt while growing an investment portfolio as leveraged investing. On my part, it was definitely a conscious decision to take on as much debt as possible on the housing side, as it allowed me to maintain and grow my existing investment portfolio. Hindsight being 20/20, I can say I made the right decision, but to the risk-averse, it's never a bad idea to pay off any and all debt, for general peace of mind. My goal was to accelerate the wealth-building phase, which leverage has definitely assisted.

    In my view, mortgage debt is significantly less risky than alternative options for investing. Terms can be locked in for 1-10yr periods, which means highly predictable cash flow over the term. The odds of a bank calling a mortgage (even if underwater) are slim to nil if payments keep coming in. Depending on the terms, payments can be very flexible, allowing for accelerated payment if so desired.

    As long as rates stay where they are, I don't see any reason not to have a mortgage.

  6. #375
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    Quote Originally Posted by Nerd Investor View Post
    In theory when that total income number is high enough, I should be able to call it quits!

    Good luck on your journey, I'll be following more regularly from now on
    That's the plan!
    Or at least, have the ability to call it quits, and make my decision from a position of strength.

    Thanks!

  7. #376
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    Quote Originally Posted by canew90 View Post
    Haven't followed the entire post, but did read several replys. Going back to your initial statement:
    "My main investment goal is to boost my "passive" income over time, so I'm going to try to post monthly charts showing the growth in my portfolio income. My strategy includes long positions in dividend paying stocks, covered call writing and cash secured (or margin secured) put writing. Going forward I'll adjust my strategy as I see what works and what doesn't, and as I learn more about options and the market in general."

    Like your overall goal, but why not simplify the process as you are young, busy, have changed jobs, etc.
    - Establish a set of criteria for the type of stocks which will help to achieve your long term goal
    - Research and make a list of stocks meeting your criteria
    - Invest regularly in those stocks over time
    - Try to buy when they are value priced (as you've already done with your calls to buy)
    - Re-invest the dividends, unless you would prefer to let the accumulate and buy at your choice
    - Don't sell any of your holdings, unless a stock falls off your initial criteria of a good stock, hold for the rising income
    - You don't need to look at other stocks, just the ones you've identified
    - Ignore market adjustments, as in 2014, which just create buying opportunities
    I'm definitely working towards streamlining my portfolio somewhat over time. But in the near term, I enjoy paying regular attention. My job still revolves around capital markets, so I'm knee-deep in this stuff 24/7 and I find it interesting and educational.

    To create a true "Passive" strategy, ideally I'd like to have enough $$$ to throw it all into a few ETFs that give me a global "couch-potato" type portfolio that generates enough income without regular maintenance. But in the growth-stage, I definitely want to try a more active approach. I find the options juice my returns by a couple % each trade, which makes a big difference in the long run.

    I'd like to create a portfolio, similar to your suggestion, of 10-20 stocks that make up the core of my portfolio, based on stability, staying power, growth potential, which I can add to regularly. I'm a fan of financials, telecoms, utilities, power producers - anything with a regulatory buffer, pricing power and/or long-term contractual cash flows. I aim to add positions in these sectors over time, which will be core "forever" holdings.

  8. #377
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    Quote Originally Posted by Dmoney View Post
    I'd like to create a portfolio, similar to your suggestion, of 10-20 stocks that make up the core of my portfolio, based on stability, staying power, growth potential, which I can add to regularly. I'm a fan of financials, telecoms, utilities, power producers - anything with a regulatory buffer, pricing power and/or long-term contractual cash flows. I aim to add positions in these sectors over time, which will be core "forever" holdings.
    By building and adding to just those above, the safest and most reliable DG stocks, I believe that in the long run you'll not only achieve your goal, but have created your own income generating etf without having to carry all the other stocks which don't add much, regardless how low the fees are. I'd avoid the cyclical, high yield, and over-diversifying and in the long term you'll be way ahead.

  9. #378
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    Hi canew90, you had a very good insight on long term wealthy building from investment. do you have an example of safest and most reliable DG stock list?
    Dmoney , I am inspired by your posts and your option strategy. looking forward to watching your progress and learning from it.

  10. #379
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    Don't want be a A**hole but with that portfolio and income to back it up you are doing very poorly .
    At 450k you should be pulling in atleast 5k a month realized gains from divided and option trading ( 7k would be an okay monthly return).

  11. #380
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    Quote Originally Posted by Walksing View Post
    Hi canew90, you had a very good insight on long term wealthy building from investment. do you have an example of safest and most reliable DG stock list?
    For good Ave yields, 6 Major banks, 3 utilities, 3 pipeline, 3 comm. Those would be a good starting point.
    For lower yield but LT growth CNR and Metro


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