October is done….one more month closer to the end of year. Like last month, I am seeing a lot of red in many parts of my portfolio….bonds and stocks in both taxable and tax-advantages accounts. We have definitely reached the inflection point in the market and choppiness is back with a bang.
How much closer did I get to my financial independence targets in October? Lets look at the numbers for October and find out.
| Emergency Fund | |
| College Fund | |
| Passive Income (2017 vs 2018) | |
| Retirement Fund | |
| Roof for our Family($750K) | 00.00% |
| Medical Fund (via HSA) | |
| Life Insurance | Done (term life insurance policy) |
Main Takeaways this month
- Passive Income Stream
- My passive Income for October 2018 seems a lot more than October 2017. But it is fake 🙂
- Earlier this year, I redistributed where my funds are invested. Cashed out some gains and converted quarterly dividends to monthly and more importantly more tax efficient monthly dividends.
- The June, September and December dividends are going to be much less. But, the total dividends for the entire year will be higher though.
- Compared to this time last year, the total dividends this year through end of October is 38% more than 2017….just distributed differently.
- My passive Income for October 2018 seems a lot more than October 2017. But it is fake 🙂
- Additional Investments
- Investments in taxable accounts
- Nothing new to report here as I am out of cash 😐
- Continuing to rebuild my emergency fund.
- Investments in tax-deferred account (IRA)
- No cash here too 🙂
- But, need to build a cash fund because I am seeing a lot of red here.
- I.e. time to invest more and dollar cost average down the investments will be here soon!!
- Investments in taxable accounts
- Miscellaneous
- I was walking through all my investment categories and I am seeing red in many of them.
- Investments in the GREEN
- US Equities :
- VDIGX
- Bonds:
- VTABX
- US Equities :
- Investments in the RED
- International equities:
- VIHAX, VTIAX, VEMAX
- Municipal Bonds:
- VCADX, VWIUX
- REITs:
- VGSLX, VGRLX
- Investment Grade Bonds:
- VFSTX and VFICX
- International equities:
- Investments in the GREEN
- In my experience, when I see such broad declines across many investing categories and across many geographies, then it usually indicates that a storm is gathering. The entire world is connected in many ways and bad markets have a way of spreading fast.
- It is time to shift focus on how to not only prepare for a downturn but also how to benefit from a downturn.
- If you have time, you can read this post I wrote a while back.
- How to prepare for the next recession?
- I was walking through all my investment categories and I am seeing red in many of them.
Humble FI 