November Net Worth

Lil’ Sizzlers Portfolio:
Total Market Value: 1,099 (+38)
Total Divs: 36.24 (+3.43)

Cash:
2,001+100+409 = 2,510 (+21)

Roth IRA Basis:
5,035 (+200)

Roth IRA Cap Gains/Divs:
+4 11/30 Gains (+38)
+46 2014 DRIP
Total: +50

401k:
My Contribution Basis: 1253
Company Match:  1253
Total: 2,506 (+340)

CC Cash Back:
+250 AmEx, +7 Chase

Motorcycle:
3,500

Car:
1,600 (-100)

Personal Assets:
5050 (+50)

Total Assets:
21,643 (+811)

“Liquid” Assets (cash, stock and retirement):
11,493 (+861) (250 was CB Reward AmEx)

Liabilities

Chase Freedom:
114 (+59)

Amercan Express:
94 (-318) (0%)

Bank CC:
25

Student Loan:
Paid on loan: 200
Balance: 23,838 (-93)

Total Liablities:
24,071 (-352)

Net Worth:
-2,428 (+1163)

Monthly Income: 2,401
Monthly Assets Change: +811
Monthly Liabilities Change: -352
Monthly Net Worth Change: +1163
Monthly Savings Rate (IRA/401k+Match/Investments/Cash/StudenLoan(No Cap Gains/Divs/CB)): 31% or $761

Fair month this November!  I did a lot of spending for Christmas and birthdays/anniversary, but did recieve my $250 cash back reward from AmEx which is excellent.  I actually also was able to score $35 in credits toward eligible purchases with AmEx as well, so add that to the grand total.  I scored a +1,500 CL increase with Chase, making my total available credit $12,500.  I am going to apply for a 3x increase with AmEx next week and see how that goes!  It could potentially be $22,500 by the end of the month.

The potential for a house is near in the future.  That would hurt the funds, but set me on the right path for increased net worth in the future.  Work is going well, and I am making about a hundred or more per week in my new position.  I am expecting close to $1000 in tax return (via a TurboTax estimator), which will help boost the cash storage and maybe help with the home purchase in the future.  I will continue to cut spending (thanks to the holidays being over soon) and increase savings as much as possible.  Until next month!

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A Reason To Love The Red: A New Stock Purchase

It’s warming up outside and it’s a beautiful day.  The stock market on the other hand is cold as can be.  However, there are positives to these red days.  When the majority of people are freaking out and selling like mad, or thinking they’ll never make their money back, people like us are taking advantage and making purchases of our “waiting list” stocks while they are cheap.  Today was one of those days for me.  The market has been doing iffy lately, and today it was abysmal, so I decided to make another purchase to add to my portfolio.  I am very excited about this one!

Universal Health/Realty Income Trust (UHT) was on my list for a while now and I’m happy to have finally made the buy.  UHT is a “Dividend Champion”, and has been providing timely and steadily increasing dividends to their shareholders for over 25 years.  Their most recent dividend was $0.63.5 cents, and they just announced another disbursment about two weeks from now.  UHT is an REIT that deals with the healthcare industry.  It sports a very attractive yield % of 5.14, and like I said, the Champion class (like the AT&T purchase recently).  UHT’s P/E is around 12, which is attractive to me – as an established company with a low PE I am estimating it will stay pretty steady over the years to come.

Another reason for this buy was to further add to my diversity inside the portfolio.  Before this buy, I had two powerhouse large-cap stocks including Telecomm: Industry and Cyclical Consumer Goods/Services: Industry.  This will add some cap diversity with the introduction of a small-cap stock and another sector (Financial: Industry).

I am looking forward to having UHT deliver some excellent dividends to DRIP and amplify my holdings!

Portfolio overview:
Ford – 5.086 Sh – 84.90 Basis – 3.28 Total Div – Large Cap – Cyclical Consumer Goods/Services: Industry
AT&T – 7.099 Sh – 239.97 Basis – 3.30 Total Div – Large Cap – Telecommunications: Industry
UHT – 7 Sh – 346.43 Basis – 0 Total Div (4.44 coming Mid-March) – Small Cap – Financial: Industry
Total – 19.18 Sh – 671.30 – 6.58 Total Div
Total “Eaten” Commission – 14.85 – This is not counted in Basis, I choose to “eat” the commission – pay it once and forget about it, never to be seen again.  Not to be included in the portfolio at all.

Disclaimer: I am not a professional and am not to be taken as such.

The Plan: Phase Two

Howdy!  I am happy to be checking in and finally being able to update “The Plan” with a new phase.  Things are going as anticipated and I couldn’t be happier.  If you remember a while ago, I was laid off and looking for work.  My dreams of financial freedom were stopped in their tracks.  I was able to overcome, and find a new job within limited time and get back on track.  It was seasonal, not guaranteed for long, but was Phase One of The Plan.

I have been able to achieve Phase Two of The Plan.

My days of seasonal employment were coming to an end, and the majority of the seasonal workers were being booted out and put on the waiting list for re-hire.  I was able to make a great impression, along with a few other workers, and the management decided they couldn’t even let us go, or face the risk of us not coming back.  So our 90 days of seasonal work expired, and the next day they hired us on as permanent employees!

*Massive cheer and applause from the arena spectators*

With the new job comes a new department and new responsibilites, perks, people and of course: benefits!  Working in a distribution center, my seasonal job was being in the middle: moving product from the recieving wing to the shipping wing.  It was tedious and rather unenjoyable due to the fact that as a seasonal, I was only trained in one of about six job functions.  My new job is in the recieving wing, and being permanent and having a go-getter attitude, I will be able to train in nearly all job functions within the department with time and practice.

My job remains on the same shift, which is also lucky for me!  I work three days a week, 12 hour shifts, with four days off.  I do lose a few hours of work, but am boosted a dollar an hour compared to the 40 hour/week people, so it comes out to be about 38 hours vs 40 hours, but with a whole extra day off.

Now into the good stuff!  With this new job comes lots of great benefits.  I will list them below.
1.  A pay raise from 15.90 to 17.60
2.  Two raises per year, up to an approximate 20.10 cap, plus annual cost of living raises.
3.  100% 401k match up to 5%!  WOW.
4.  80 hours paid vacation a year.
5.  24 hours paid personal days a year.
6.  Access to a tax free health savings account.
7.  Access to health insurance, single premium of $11/week and family premium of $55/week (won’t need this for 3 more years).
8.  $225,000 Life Insurance for 50 cents per week.
9.  15% discount at my employer’s major retail stores!
10.  Four days off a week.
11.  The ultimate goal: possibility for promotion up the ranks and having a job where I can truly be put to the best use, with a great salary to boot.
12.  Short and long term disablity coverage (inside and outside of work) for only cents a week.
13.  6 paid holidays per year, regardless of if you’re scheduled during it or not.

So really, holy cow.  I hit the jackpot here.  For 23 years old, I am happy to be where I am at in this situation.  I am getting decent pay, have all sorts of solid benefits, and work for a great company, with great people, and the possibiltiy for advancement is very real.  Throughout my seasonal period, I worked closely with management and got to know several of them.  They helped me get a position with a good shift and inside this distribution center (there is another one nearby) where I still know people and I feel comfortable.  I will continue to work with these people that are genuinely interested in bringing me onboard as a supervisor.  I am so blessed to have these folks looking after me and working with me on my advancement!  I am looking forward to giving them my all and proving that I can be a valuable asset to their company.  But for now, I am in a good position and good place to start building.

With these new numbers, my situation will look a bit better than it has been the previous few months:

Working 36 hours per week:
17.60/Hr / 26.40/Hr OT
633/Wk Gross / 475/Wk Net* (after benefits)
2532/4Wk / 1900
32916/52Wk / 24700
* – Note that my 5% 401k is not deducted from this total.

My monthly expenses look about like this:
400 – Rent
300 – Student Loan
90 – Utilities
80 – Insurances/Cell
120 – Roth IRA
50 – Gas
200 – Food
60 – Misc
= 1300 / 325 per week

This allows me to save about $150 per week, about a 30% cash savings rate.  However, consider that $420 of that $1300 is going towards net worth, making my true savings rate $255 per week or about 53%!  AWESOME.  50% is the goal, and while I may spend extra with entertainment like going out to eat, having fun with my friends, etc., at this point in my life I am happy to be hitting that number, or a bit lower if it means enjoying life.  The plan is to get in a groove, and steadily increase my Roth contributions to about 50/week, maybe boost up my Student Loan payment to 350 from 300, save the rest and every two months make a high-dividend yield stock purchase to add  to my portfolio.  I choose every two months to eliminate the frequency of the $5.50 commission as much as possible.

Things were looking up during Phase One, and now things are looking up even more during Phase Two.  My ultimate goal in this process is to reach Phase Three, the promotion phase.  This would allow me to have a job where my skills and abilities can truly shine, as well as getting a job with terrific benefits and pay.  Phase Three will be a LONG way down the road.  I am not expecting it to happen for another 8-12 months, but anything is possible.  In the meantime, mini-Phases will be happening such as pay raises, possible part-time jobs, tax returns, etc.!  I am really enjoying this ride, and continue to look forward to my progress.

For those that have read, thanks for reading the long post, and I hope you are doing well in your endeavors.  Feel free to comment with any similar situations, words of advice, or anything else.  Take care!

A New Buy

After researching several articles and sources of high dividend yield stocks, I decided to make a recent purchase to add to my portfolio.  AT&T was my decision for my second investment (Ford was first).  It has a great return of 5.56%, and it’s a “Champion” which means it’s been handing out steady dividends for many, many years.  I see AT&T as a solid company and I don’t think they are going anywhere for a long time.  I was able to purchase 7 shares at 33.81.  T’s 52 week range is 31.74 – 37.48, so I acquired it at a fair price.  T has shown positive gain over the years, and has remained fairly steady over the past 5 years.  I am comfortable with this purchase, and am looking forward to seeing some dividend returns to be DRIPped into this stock!  I actually will be receiving my first dividend on Feb 2nd already, as they announced the ex-div date as next Wednesday!

Stock Order:
Stock: AT&T (T)
Quantity: 7
Price: 33.81
Cost Basis: 236.67
Commission: 4.95
Total Cost: 241.62
52 Week: 31.74 – 37.48
P/E: 10.37
Dividend/Yield: $.47 / 5.56%

November Net Worth

Assets

Lil’ Sizzlers Portfolio:
Ford: 80.04 Mkt Value + 1.88 Div = 81.92 (+10.29) – DRIPped $0.63 for .04 shares on 12/1

Cash:
1,121.00 (-4084)

Roth IRA Basis:
2,720.93

Roth IRA Cap Gains/Divs:
19.12

CC Cash Back:
50.12

Motorcycle:
3,500

Car:
1,700

Personal Assets:
4600 (+100)

Total Assets:
13,793.09 (-1593)

Liquid Assets (cash, stock and retirement):
3942 (-1,744)

Liabilities

Chase Freedom:
686.00 Payment Bal (Zero % APR) (-82)

Bank CC:
74.00

Student Loan:
27,077 (-751)

Total Liablities:
27,837 (-759)

Net Worth:
-14,044 (-834… Ouch)

Net Worth w/o Student Loan & Last Pmt:
13,923 (-695)

Well, this was a pretty rough month for me.  I admit to a huge lack of discipline with my spending  this month.  Looking at my statement, I spent over $225 in going out drinking and eating, including carry out/fast food.  Then I dropped another $170 on a birthday gift for my girl, which is of course fine, since I don’t buy her stuff much, but ouch.  There’s $400 that I’ll never see again.  Then I dropped $95 on a stereo system for my gym that was justified, but that totals almost $500 in extra spending this month that would normally be around $100 or so.  With Christmas coming up I’m expecting another decent chunk this month, but I will cut down on the eating out.  One occasion alone was a $65 dollar night… Absurd.

In a positive light, though, I threw down $890 on my student loan and maimed one of my 6.55% loans.  It took out over a third of it, so I plan on paying it off within the next two or three months.  Credit debt stayed about the same – a bit of a decrease which is always welcome.  I like holding the balance at around 700 for credit score and utilization purposes.  Bank CC will be paid in full before interest date, of course.  My Roth IRA was very exciting and it’s already made me some cash.  I am looking forward to building on this awesome investment!

Overall, a rough month indeed, but there were a few positives in there.  After Christmas I should be back on track, as long as I don’t get laid off from my new job for too long.

How I Would Spend $1,397,480.

As I sat back on Thursday night and watched the Green Bay Packers (my team) vs. the Seattle Seahawks play on national television, I wondered what it would be like to be an NFL player.  Between the two teams, the average yearly money being pushed through for the player salaries is 239 million dollars.  Taking 239 million / 106 (one 53-man roster per team) comes out to be 2,254,716 dollars per year, per player.  Taking that average and deducting approximately 38% for taxes, that leaves a net of 1,397,480.  Here’s how I think I would spend that money.

How I Would Spend $1,397,480:

1.  Pay off my student loan: 29,000

2.  Pay off my parent’s house, dad’s student loan, and buy them a garage: Est. 75,000

3.  Pay off my sister / brother-in-law’s house & student loans: Est. 90,000

4.  Assist in grandparent’s health care costs: Est. 25,000

5.  Donate to local animal shelters: 50,000

6.  Assist friends with various debts: 50,000

7.  50 years worth of $1000 college scholarships for my alma mater high-school: 50,000

8.  Pay off girlfriend’s student loan: 20,000

9.  Open my gym (finally!): 150,000 (539,000 : 858,480)

10.  Buy silver coins for emergency economic collapse: 30,000

11.  Purchase three (3) four (4) bedroom homes in my current college town: 330,000

12.  Purchase my own dream home: 150,000

13.  Purchase a solid, decent-MPG vehicle: 30,000

14.  Invest in a diverse, mixed-aggressiveness portfolio of high-dividend yield stocks: 318,480

15.  This is an option that I would most likely do, but it would elimate the “non-income” generating numbers 1-8 and 13, which could be made up with income generated over time.  BUY FARMLAND!: 419,000 – 42 Acres

And that does it… For now I can’t think of much else that I would include.  There are a few income opportunities included in these at numbers 9, 11 and 14 and 15.  Things like future parent medical bills, future help with my unborn children and sister’s children would be taken care of with the residual income as needed.  I will delve deeper into my expected earnings for income as well as a portfolio outlook below.

For the income aspects of it, here’s what I’m thinking:

– The three houses would be in a college town, They would rent at 1200/month or “advertised as” 300/room.  As a DIYer and with access to a Master DIYer in my father, I would put maintenance at an estimated 2400/yr per house, or 200/mo.  I would add 25% tax onto the gross rent total of 1200, and come out with 900.  Subtract the estimated 200 for maintenance and I get 700.  For 3 houses, that would net me 2100/month or 25,200/yr after tax and maintenance.  Gross would be 43,200 without tax or maintenance.

– My gym would be next.  The cost for this gym includes all equipment, land, and a brand new building of 60×100 feet.  Luckily there would be no loan, but I would put monthly utilities at around 500, and monthly insurance at around 1000.  If I were to have it as a 24-7 access, no staff would be needed as long as I put in 14-20 hours per week to maintain and clean everything up.  I would price membership below market average.  I would assume average (just from my experience) is at over 35/month.  If I were to price membership at 25/month, I would only need 60 members to cover costs.  This is very attainable.  Let’s put the membership at 100 and make 2500/month.  Subtract 1500 for costs and we bring in 1000 gross (12,000/yr) per month, or about 800 (9.600/yr) net per month.

– Farmland is something that I have always wanted to own and something you can make a killing and a living off of just renting it.  It’s nearly impossible to get without mountains of money, and as you can see even with 419,000 I would only be able to purchase about 42 acres.  Prime till land is going for about 10,000 per acre around my parts.  Average rent is 270 per year per acre.  Take that times my meager 42 acres, and it comes out as 11,340/year.

– Lastly comes the low-moderate-aggressive dividend portfolio. Stocks would ideally be diverse and well-established.  Some would be prototype funds that would include high-risk, but mostly a conservative portfolio.  I would put this portfolio at an average of 4% per year in dividend returns.  If the money wasn’t needed, the dividends would go into re-investment.  Included would be companies/stocks like TGT, SO, RAI, AEP, VNQ, ETR, FE, MO, MCD, PEP, PM, T, PFE, COP, EFC, WMT, JMI, NYMT, CVRR, CYS, ORC, ARP, AT, AI, ARR, NLY, AGNC, VVC, TEG, NWN, DBD, IEP, VZ, CSCO, UNP, GD, BA, DE, CMI. CAT, GE, NVDA, ATI, MSFT, AAPL, SDR (RISK), and RNO.  These are just a few of the many promising stocks out there that provide solid fundamentals in terms of solidiity and longevity, and also offer a strong dividend yield.  Take 318,480 x 4% and come out with 12739.  That’s approx 1060/month.  1060 by about 20% tax comes out as, let’s call it, 800/month.  That’s another 9,600 per year (same as the gym)… Meant to be?

Total income:
So, after all the fun and dandy, here’s what it comes out to be.  With 798,480 of the 1.397,480 invested, I come out with a yearly gross income of 67,939.  Add the farmland and it’s 79,279.  After taxes, maintenance, and other stuff, it comes out to be approximately 49,450 or 57,950 with the land.  This is with an approximate monthly expense of about 700.  This includes cell phone, property tax, food, gas, and entertainment.  So, after all basic monthly payments, I am making about 41,000/49,500 extra per year.  This means I would more than likely be able to re-invest all of the 9,600 per year of the portfolio, as well as hire more employees or trainers for the gym, bringing in more income and more people.  I do realize I would be missing things like health insurance, etc. but the general jist of things is there.  I would be making a great income with an investment of 800,000+, and I would also be attaining my main goal of financial freedom and the ability to spend most of my time with my family, eventual children, and  friends.

This was an awesome lesson and took me over two hours to completely accomplish.  I did a lot of thinking and it was very humbling to sit down and divvy out over a million dollars to have my way with.  It makes me think how extremely blessed those players are, as well as everyone else who makes that kind of money.  They are financially free, and in a world where money is king, they have the ultimate gift.  I hope they all take advantage of their situation and never take it for granted.

Take care readers and thanks for stopping in!

EDIT: I forgot one of the most important things, a Roth IRA.  I would of course dump the max into a new Roth IRA, which I think is 5500 a year.  So it wouldn’t be much but I would definitely do that, and then max it out each year following using my net income.

Welcome.

Welcome to myself and anyone who may be reading… So, probably just myself.  I’ve never done this blogging business before so I will just wing it and hope for the best.  It’s a new thing to try and I’m hoping it provides additional motivation and helps keep me on track of my goals.  I also hope to connect with other people like myself who are starting from a limited amount of income and  are planning on maximizing it.  I’ll start off with a little about my main goals and how I plan to achieve them.  It is my wish to eventually achieve “financial freedom” through various avenues of investment.  My definition of financial freedom is being able to live a happy (not particularly celebrity rich status) life and not have to worry about spending the majority of my time at work 40+ hours per week, like many other folks do.  The avenues I have in mind are more traditional; things like long term stock & dividend investment, bonds, precious metals, retirement funds, real-estate and land investment.  Other possibilities include investing in businesses, starting small businesses, publishing books, and others.

This is something I have wanted to do for a long time and it’s time to get started as soon as I can.  I was about to get this going recently but I just found out I am losing my job (thanks John Deere) so it’s going on a temporary hold until I can get something straightened out.  I do have some student loans, and low credit card debt with ZERO APR (I pay in full every month, unless I have 0% APR).  Besides that, I am debt-free.  I had a Roth 401k going via Fidelity but I will no longer be able to contribute to that thanks to my job loss.  I am starting a Vanguard Roth IRA in the near future once I have a steady job.  I have a small portfolio that I started a while ago (literally, tiny) and will continue to expand upon when the time is right.  I also have an incredibly wealthy friend who is on my side, and has given me experience with stock trading and is there for knowledge.

A little about myself.  I’m a college grad with a Criminology Bachelor’s Degree.  My aspirations were to go into law enforcement, and still are, but I am open to all avenues that life has to offer.  Especially one that would help contribute the most to my investing goals.  My main goal right now is to look for a means to an end; that is, the best job for me that allows me to rake in as much dough as possible to build up for my future retirement.  I am an Eagle Scout and a small town kid.  I am a massive Green Bay Packers fan and even have a Green Bay tattoo.  I love shooting guns, playing computer/PS3 (Madden), and drawing.  At 23 years, I’ve had plenty of life experience but have an incredible amount to still learn.  I’ve got an insane attachment to my friends, close family members, and my girlfriend.  Before all else, including money, comes those folks.  Life would be useless without them.  And what better motivation to succeed in my goals than knowing if I do, more time can be spent with them and less slaving away at a job?  It doesn’t get much more inspiring than that.

Thanks for reading.  Stay tuned.