2014 Goals & Objectives

I’ve delayed assessing my 2014 objectives for a few weeks because we had a few things in flux. Now that the dust has settled, I can tell that 2014 is going to be a pivotal financial year for us. 


When I was setting out my goals for 2014 and even more long term, I had the aggressive, some may even say crazy, goal of wanting to get to $50k/yr in passive income by 2018. At the time, my thought was to achieve that primarily through dividend income.

Well, 1 year on and a lot has changed. I’ve discovered the magic of tax sheltered investing which is going to add  approximately $500k incrementally to our family nest egg (probably the most profitable few hours that I spent running the numbers on this).We just managed to cross my $27k dividend target for 2013, and I was encouraged by the fact that we are on a $3,500 run rate for US dividends in 2014.

In other news, we’re about to close on a house. We’ve offered, had accepted and inspected a nice place that meets all of our needs and many of our wants.  I can see us kicking on here for quite a number of years if all goes to plan. What that’s meant is that we now have the option of turning our existing place into a rental. Given it’s relative newness and great proximity to transport, shopping etc,  I’m confident we can get the place tenanted fairly quickly.

So given all of this, the net net is that this year should mean a pretty special thing for us. We are going to get very close to my dream target of a run rate of $50k in passive income in 2014. But I’m not about to declare myself FI just yet :). We’ve added a nice big mortgage that we have to start the process of paying down now.

The good news is that I can see that we should be in pretty good shape to truly be FI with minimal mortgage and passive income to support us in another 6-7 years. At that point, I’d expect the mortgage to have a big dent in it, dividend and rental income to be north of $60k, the 401k account to be pretty well padded, and our annual expenses to fall given we would have gotten over the hump of major childcare expenses. Time will tell if that number if a sufficiently large number to run a small family budget with.

The other very interesting part of our financial journey this year is that for the first time this year a reasonable portion of our passive income will be integrated into budget plans to either service debt or meet living expenses. I don’t anticipate reinvesting my dividends going forward, till we’ve managed to make major inroads into our mortgage debt.  I’ll soon discover if this passive income thing is all it’s cracked up to be.   Exciting stuff!

With that, here are the goals for 2014:

Dividend income$28k for 2014. This will be a year of harvesting what’s currently there in dividend portfolio and enjoying some modest dividend increases . I’m hopeful I may have a little bit of extra capital available through the year to add some $10k into some existing dividend holdings. Q1 2014 is not going to be anywhere near as crazy in terms of activity as my Q1 2013. Maybe that’s a good thing given higher valuations!

Rental Income – 6 months of rental income or approximately $10k. I’m hopeful that we can have the condo listed and available for rent by mid year.

401k max out – In spite of all the other things that are going on in our financial life, I want to ensure that at least I max our my 401k this year (even if my wife doesn’t). Tax deferred investing is going to be a big part of our financial future

Growth Portfolio – I’d like to make some steady contributions to the growth portfolio if capital permits. I’d like to see if we can free around $10k to add to existing holdings, as a stretch goal.

Venture Portfolio – It’s going to be a year of just monitoring and tracking the venture portfolio, and hopefully seeing some steady appreciation. I don’t expect any new inflows, though I may trim and or swap if the opportunity presents itself.

Here’s to a profitable 2014 to all of you!

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