2019- 09 Passive Income












Time to celebrate passive income once again. I am transitioning out of my GICs. That will take another four years. Yay.

I am starting to get the hang of this dividend income. I see the allure of dividend growth investors who increase the yields so that they do not have to sell principal for living expenses.

I am too rational for that. I have zero desire to delve into individual stocks because I stop closely watching the investments after awhile. I just stop looking at them because I know I will not do anything differently.

I am aware that there is no free ride in life. When one spends the juiced up dividends during a down market, you are still eating into your capital. The only difference is that the company made the decision and not yourself.

I am planning to build dividend income from our broad based index fund. I may plan to spend 2% during down and flat markets and 3% otherwise. I haven’t etched this in stone since I am far from having to think about income from our investments.

Goals Based Investing. AKA What Do You Want?

I think I review this often but I need to remind myself.

I do not ascribe to this treatment of one’s savings as “one big portfolio”. I think it makes it easier for an advisor but that is not how my brain works.

That is why our TFSAs will be used in our estate portfolio. That is also why I have this invested with an asset allocation of 80/20. I do not even count this money in our passive income.

My husband is planning to work part time for at least another five years. We will re-evaluate at that time.

The biggest goal that requires funding is the post secondary education of our two children. They may even attend trade school if that will secure work for them.

Either way, we plan to support our children with whatever education or training is required. I want them to find something they enjoy enough to keep doing for a good long while.

They need to find something they enjoy that earns a living and that they are good at. Those are the main stipulations.

I want to give with warm hands and a warm heart.

I plan to help my kids. They are not spoiled. I just take care of the basics plus some fun spending.

There are moments in most young adults’ lives where the bills come quickly. It is often when they are just starting their career, meeting partners and having to rent/ buy their home. They might even be starting families. That is when I will be glad to help out.

I do not understand this belief that the kids need to “have skin in the game”. That’s a bunch of hooey. Who doesn’t remember when times were tough?

It would have been wonderful to have a helping hand. I see my sister do this with her kids. They think they are “teaching” their kids good money management by never helping them when they run out. Instead they have electrified money. It is all her kids think about. I just send them some money to help them out. Good grief already.

Money is simply a way station. It is not the destination. Money can make your life simpler, easier and foster well-being. That’s my ultimate journey.

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