Financial Independence Progress Report for March 2018

March 2018 is done and with that, the first quarter of 2018 is done. March is one of my favorite months because almost all my funds send me dividends on a quarterly basis. Lets see how the numbers look for March 2018.

Caveat: Though then March numbers look green all over, note that the numbers got murdered in February….perhaps I need a year-to-date number….will think about it.

3/31/2018
Emergency Fund 83.33% 83.33%
College Fund ($80K) 63.66% 64.54%
Passive Income (2017 vs 2018) $1254.31(3/2017) $1396.05 (3/2018)
Retirement Fund 81.63% 82.79%
Roof for our Family($750K) 00.00%
Medical Fund (via HSA) 6.17% 9.77%
Life Insurance Done (term life insurance policy)

Main Takeaways this month

  • Passive Income Stream
    • My passive Income for March 2018 is 11% higher than March 2017. Not much of a gain, but it is greater than average inflation percentage of 3%.
    • I was considering the Rule of 72…the rule that predicts when your money will double. If I continue at 11% (caveat in next point), my money will double in 7 years….wouldn’t that be nice for FI 🙂
    • Anyways, 11% increase was achieved more by new investments than dividend returns and additional investments are drying up this year. But, nice to think about it hey…more on this coming later!!
  • Additional Investments
    • Investments in taxable accounts
      • I sold VHDYX, captured the gains and moved the money into my MUNI funds. Why?
        • Tax equivalent yield for VCADX is 4.5%.
        • VHDYX yield is 2.75% and I get taxed on top of that. It is possible that VHDYX will add some capital gains but it looks like we are almost done with the bull market…so, we can discount this.
        • When the prices drop later this year, I will invest back into VHDYX…lets cross that bridge when we get there.
    • Investments in tax-deferred account (IRA)
      • In Dec 2018, I took some profits and set up a a cash fund set up to take advantage of the next investing opportunity. This month, I cashed out profits from a couple more funds and added to the cash fund.
      • Unlike 2008, I want to have a cash fund ready to take advantage of lower asset prices in the next bear market!!
      • I also bought some more of VGSLX…a REIT fund….REITs have dropped almost 10% this year….so, seemed like a good time to buy into this and dollar cost average down my REIT investments.
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