Financial Independence Progress Report for May 2017

May is a one of the super-special months in the year. Why? Because it comes before June….one of the two biggest dividend months in the year 🙂 Other than that, May was a dull month. And I have missed my update for April 2017….I do remember writing it…but I guess I forgot to publish it…I found it in my Drafts folder. So, it is going to be a 2-month update for some categories!

Let us look at the numbers for May 2017.

Emergency Fund $60K 84.135% 84.73%
College Fund (80K) 51.35% 53.24%
Passive Income (2016 vs 2017) $371.51(05/2017) $470.72 (05/2017)
Retirement Fund 71.45% 74.27%
Roof for our Family($750K) 00.00%
Medical Fund (via HSA) 2.6% 2.6%
Life Insurance Done (term life insurance policy)

Main Takeaways this month

  • Passive Income Stream
    • Passive Income for May 2017 ($470.72) is appx 26% higher than May 2016 ($371.51).
    • I have stolen as much money I can from all my other goals to fund my passive income streams…especially from our home down payment fund. This has resulted in double digit year-over-year gains. But, next year, I will not see this kind of gains…I will enjoy them while they last hey!
  • Additional Investments
    • International exposure
      • Just like prior months, I have continued to increase my exposure outside the US market. Dividend investors are not supposed to look at the stock price…but US stocks seem so overvalued that I just can’t bring myself to add to it.
      • On the other hand, I want my passive income streams to come from many countries all over the world to spread the risk of a single part of the world going through a bad phase. So, I added some more funds to my existing investments in Emerging markets (via VEIEX) and Euro-Pacific Developed Markets (via VTMGX).
  • Build a tiny cash fund again
    • I am accumulating some money in a money market fund. I want to have a small cash fund accumulated to take advantage of any market dip(s) in the US market.
  • Capture gains in my IRA/401K
    • Seeing the insane manner in which the US market stocks are going up, I can’t shake the feeling that we are at the top. I see all the signs of a big drop except the market is going up and up. It is tapering now and I feel that a major dip is quite near.
    • My IRA lost a lot of its value (total return) in the 2008 downturn and I had to wait almost 6 years for it to come back up. I was a financial fool at that time and did not even attempt any corrective actions….I could have moved to preserve some of my gains…but did not know any better.
    • For the upcoming downturn, I do not want to lose the gains in my IRA. So, I cashed out most of the gains accumulated in my IRA over the last few years and have parked them in cash inside my IRA. When the next dip happens, I will put them back to work. Until then, I am okay with losing 2-3% in dividends versus losing 10-20% of the stock price.

2 thoughts on “Financial Independence Progress Report for May 2017

  1. The market is insane right now!
    That’s why I’m only buying 10 shares here and there. I’m just going to build up my emergency fund. Should there be a big dip, I’ll buy more, otherwise, I’ll be like you, I’d rather lose out on 2-3% than losing 20% in a huge correction. Because it would take a gain of 37.5% to gain back to previous level. That’s the risks I don’t want to take with my emergency money.


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