I would have never imagined how rapidly my wealth would grow this year especially after a pandemic that shut down economies all over the world.

The recovery in asset prices has been jaw dropping and the lessons from investing through such period was invaluable.

Regardless of what happens to asset prices, it’s important to have strong discipline in how you manage your finances. Yes, the basics. Spend less than you bring in. Try to save a set amount of your earnings. Invest in productive assets.

It’s that simple folks. It’s what I have been doing for over 2 decades and it changed my life.

I set myself up with simple, easy to achieve and measure goals. And as time goes by, I modify them to fit my desired outcome later in life.

Somehow I have come to this point in my life where I can envision myself reaching a $10 million net worth. Something I would have never imagined I would be able to achieve just 5 years ago.

So, here I am sharing with you how I plan to achieve this goal with the following areas of focus.

Let’s get into this! 🤠

 

Investment Goals

• 2020-3: Generate $10,000 in dividend income
• 2020-3: Invest at minimum $1,500 per month into the dividend portfolio.
• 2020-3: Reach a $50,000 Fundrise Portfolio.
• 2020-5: Maintain steady portfolio growth between 6% to 12%
• 2020-6: Invest $100 per month into M1 Growth Pie.

 

Generate $10,000 in dividend income

In 2022, AT&T will cut dividends by about half. That will slash my dividends by about $1,000. I may reallocate the spun off media assets into dividend paying stocks but nothing is set in stone at the moment. I’m leaning towards holding onto the media assets for the long term. Companies are starting to raise and reinstate dividends after the pandemic. I expect dividend increases to start picking up here on out.

 

Invest at minimum $1,500 per month into the dividend portfolio

The LBF Dividend Portfolio had a total net inflow of $15,402.20 YTD ($2,567.03 per month) by the end of Q2.

 

Reach a $50,000 Fundrise Portfolio

• April 2021 – Dividend payment was $122.72

• Fundrise iPO shares appreciated from $9.54 to $10.90 a 14.2% increase.

Total Fundrise portfolio value: $37,084.18 (74% completed)

 

Maintain steady portfolio growth between 6% to 12%

More than happy with the returns for this year. Above expectations but I wouldn’t be surprised if we ended lower than where we are today by year end.

My cash holdings have come down significantly due to appreciation in stock prices and putting more cash to work. I feel this is quite a unique time to be investing through and decided to shelter more cash from inflation.

 

Invest $100 per month into M1 Growth Pie

As of July 1, 2021

Look at that pie grow folks. If I was in my 20’s, I would invest my whole portfolio into something like that. Perhaps once I reach my $10,000 dividend goal I will give this portfolio a raise. 🙄

Made some adjustments to the M1 finance LBF Growth Pie.

Updates to Pie for Q2 2021:

Trades

• 2021-6-9 – Sell SPCE – $100.01 (Rebalancing)
• 2021-6-29 – Sell SPCE – $81.01 (Rebalancing)

And that’s a wrap for investment updates! Time to check up on the next part of the equation!

 

Income, Cash Flow, & Savings Goals

Here are the goals:

• 2020-3: Achieve positive cash flow every month of the year.
• 2020-5: Increase annual income by 6% every year.
• 2020-6: Maintain long term average savings rate at or above 30%

 

Achieve positive cash flow every month of the year

I am making slight improvements to my yoy cash flows but still have much work to be done. The month of June had some large expenses going out due to a large appliance purchase(refrigerator went out🤦‍♂️), taxes, and a trip to Las Vegas.

 

Increase annual income by 6% every year

Income is up 30.3% YoY. Looking good here so far!

 

Maintain long term average savings rate at or above 30%

Looks like I’m right at my target savings rate for 2021. My plans are not to over save anymore. Anything above the target savings rate will be money to spend on travel and gifts.

 

Net Worth Update

I have one simple goal when it comes to the net worth:

• 2020-6: Increase net worth by at minimum 6% annually.

 

Increase net worth by at minimum 6% annually

Snapshot of net worth from Personal Capital.

Net worth YTD: +14.5%

We hit a major financial milestone this month. Kind of surreal. Nothing changed however. The last 3 months has been on 🔥. Net worth went from 4.5% YTD growth by end of Q1 to a whopping 14.5% increase ytd. Quite unbelievable to see my net worth rise so quickly all while living this FIRE life. I guess I can thank the FED’s for this…🙄 Anything above 6% annual growth is just icing on the cake and a blessing.

 

ETA 10 Million

Based on current trends, projections and expectations for future growth, my best to worst case scenario towards a $10 million net worth will be the following.

How many years it will take:

17-33 years

By what age:

57-73 years old 

My projections have been further modified again. I plan on spending and giving away more money. I have to force myself to do this. I enjoy saving money and watching it grow. Materialistic things don’t entice me much. The goal is to balance life out by spending in the right areas to improve health and happiness for not just me but loved ones around me.

That pretty much wraps up my progress report. The idea is to reach $10 million net worth without sacrificing too much of my youth. There is nothing more important than time and it is one thing you can never get back.

I may not be able to enjoy much of my wealth when I am in my 60’s. I may not have my physical health for whatever reasons. You never know what can happen in life and it’s important to live in the current moment!

Something I refused to acknowledge when I was striving for FIRE but a luxury afterwards I guess… However, it is one of few regrets I have today.

Till the next update friends! 🙏