Time for an examination of how the portfolio has grown through 2016 and if I was able to accomplish all the goals set.
Let’s start with a small recap of the original goals for 2016:
1. Invest a fresh €20,000 in the stock market to improve my dividend income and work my net worth towards €50,000.
–> Smashed it! I already hit the target with only my work income, but I decided to transfer cash savings to my broker account to invest too. I saw no point in having 30K+ in cash… 30,000 employees just laying still?!
FYI, including dividend reinvestment, I poured €41,800 into the stock market.
Next year will be significantly less as this was due to a non-recurring event.
2. Put at least €10,000 out of the €20,000 in ‘iShares Core S&P 500 UCITS ETF – Acc’ (CSPX).
–> Failed miserably. Why? I invested all the money in individual stocks. I couldn’t restrain myself from seeing op
portunities in the market (and they didn’t turn out to be bad).
3. Clean my portfolio some more
–> Succeeded +/-. As I didn’t start with the same knowledge and strategy as know (actually pretty much no strategy), I had 3 stocks I didn’t want to hold for the long-term. I still have 2 of them in my portfolio, but the news surprised in a good way so I’ll be holding onto them longer to maximize gains and eventually sell.
4. Receive at least €1,000 in dividends
–> Kaboom! €1088.76 in dividends were received. Next to this I received €244 intrest on a 8k bond. I also received some chump change intrest on my cash, but too small to be noticeable.
5. Stay in shape
I can be a happy man looking back to 2016. It has been a good year.
2017… Bring it on.
1. Invest €26,000 in the stock market. I expect income to be around €30,000 and expenses around €4,000. This will be a tough challenge.
2. At least €6,000 in an index tracker
(i.e. S&P500 or All-World). A lower target than 2016 has been set as I would like to reach
the target this year and gain more investments
with less time consuming characteristics.
3. Receive €2,250 in dividends. This doesn’t look very ambitious !but! the ever-greedy Belgian government decided to raise the withholding tax on dividends from 27% to 30%. Acquiring accumulating ETF’s don’t distribute dividends but I will count them as 2% dividend. Also, undervalued growth companies don’t distribute that much dividend (yet) but are set to grow dividends at a much faster pace than behemoths. I don’t only want the dividend, I want the growth as well. If this means I have to settle for a net 1,5% dividend yield, I’ll deal with it. Growth perspective has its price too.
4. Reach a net worth of €125,000. This will be made up of stocks, bonds, pension funds, saving accounts but excluding the pamper account. This is a prudent forecast as my current own net worth is around €98,000. I don’t calculate much stock appreciations as you can see.
5. Read at least 5 books about management, economy, finances, stock market…
Have a good 2017!