My favorite time is the end of the year! Why? Because It’s that time of year to mark your progress, set new goals, and reflect on the lessons.

$10 million milestone, is it worth it? Probably not but it’s quite an interesting challenge that I believe will keep me motivated to learn. I feel like I have everything I need in life and wake up often feeling grateful for the life I have.

You better have something you love to do when you FIRE because if you don’t, It’s likely not for everyone.

Let’s get to this final update for the year!

 

My Baby Steps Towards $10 Million

Investments 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%
• 2021-9: Invest $200 per month into M1 Growth Pie.
• 2020-6 to 2021-9: Invest $100 per month into M1 Growth Pie.

Income, Cash Flow, & Saving 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%.

Net Worth Goals

• 2020-6: Maintain Net Worth CAGR above 6%.

 

Generate $10,000 in Dividend Income

My expectations for dividend growth in 2021 was about 12.3% but instead has increased 28.4%! Very grateful for the progress being made. My projections for dividend growth next year is 8.4%. That should set me up to achieve my goal of $10,000 by year end.

 

Invest at Minimum $1,500 per Month Into The Dividend Portfolio

The LBF Dividend Portfolio had a total net inflow of $41,961.40 YTD ($3,496.78 per month) by the end of Q4. Well above my target of $1,500. 🙄

 

Reach a $50,000 Fundrise Portfolio

• Oct 2021 – Dividend payment was $131.65

• No updates to the price of the iPO shares.

• Fundrise is a steady performer and I like it for what it is.
• Total Fundrise portfolio is valued at: $40,422.65 (up 34.9% ytd)
• Portfolio return for the year came in at 18.8%.
• I am $9,577.35 away from reaching my goal!

Interested in Fundrise? Sign up using my referral link and get started.

 

Maintain steady portfolio growth between 6% to 12%

A return of 12% is all that it takes to keep me happy. But if the market gives 27.6%, I gratefully accept! What a gift! 🎉

 

Invest $200 per Month into M1 Growth Pie

There have been some adjustments to the M1 finance LBF Growth Pie.

Updates to Pie for Q4 2021:

Sell Orders

• 2021-10-13 – Sell: TDOC (All shares)
• 2021-12-6 – Sell: NOW – $100 (Rebalance)

New Positions

• 2021-10-13 – Add: LRCX at 2% of portfolio.
• 2021-11-15 – Add: U at 3% of portfolio.
• 2021-12-2 – Add: SI at 3% of portfolio.
• 2021-12-2 – Add: TWTR at 2%

Weight Adjustments

• 2021-12-2 – NVDA from 11% to 10%
• 2021-12-2 – RDFN from 4% to 3%
• 2021-12-2 – XYL from 3% to 2%
• 2021-12-2 – NOW from 4% to 2%

Contributions are on schedule and things are looking great. I added an extra $200 more to December thanks to the pull back. Who says a few hundred here and a few there can’t built wealth! Keep those monthly deposits flowing into your brokerages each and every month like clock work!

Not signed up with M1 Finance? Use my link to sign up and get $50! Sign up with M1 Finance!

 

Achieve positive cash flow every month of the year

This year was an improvement over the last. Only if I can shift some of that December cash flow into the other months…

You don’t have to shoot for the stars to build lasting wealth. Turtles can also finish races without tripping much! 🐢

 

Increase annual income by 6% every year

Income is up 26.8% yoy. Much better than I had projected for 2021. Most of my income gains have come from equities.

 

Maintain long term average savings rate at or above 30%

My savings rate is ending this year on a strong note! This is getting out of hand folks! Need to lop that off the top and spend it away! Or give it away! Or perhaps save it… for another property? Perhaps sell my 1999 truck and get a new car? What am I thinking! Not in this over inflated auto market!🤔

 

Increase net worth by at minimum 6% annually

Snapshot of net worth from Personal Capital. Sign up using my link and get $20.

Net worth YTD: +22%

I am lost for words by how much my net worth has gone up in 2021. It is absolutely mind blowing to see such increase in a single year all while I live this life of FIRE. I expect years like this to be very rare going forward. I think it is very important to stay humbled and understand the larger forces in play that lead to such year. I maintain my 6% goal moving forward.

 

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 to reach $10 Million net worth:

17 to 31 years

By what age?

Between 58 and 72

A tiny improvement of one year from 73 to 72! I’ll take it! Time is to darn precious!😅

 

Final Thoughts

That wraps up the final update for the year. It’s been quite a ride sharing my journey with you friends and family who frequent the site. I would like to end this year by reminding you that investing is a long game. There WILL be long stretches of months or even years when returns are low single digits or even negative for some.

When those days come as they eventually will, the one who looks far into the future when many worry about the next will likely fair better.

Life is uncertain and I often wonder if I will make the right decisions when the time calls. I hope I do. And I also hope YOU do.

We will never be perfect and we don’t have to be. We just have to be persistent and live by a few principles that will help guide us to the future we desire whatever they may be.

I wish you all my blessings and wishes! Most importantly I wish you good health! There is absolutely nothing more important than health!

2022 here we come!🚀🚀🚀