milliondollarjourney.com

I mentioned this exclusive promo in a recent MDJ newsletter blast but I’ll share it here for readers not subscribed to the newsletter. I get a number of questions about which dividend stocks to buy and which sources I use for research

I received an email from a reader with a bright financial future. She has both her RRSP and TFSA maxed out and wondering what to do next

In essence, it’s the point where you reach financial independence or FIRE (financial independence/retire early). With fairly consistent annual expenses in the $52-$54k range, we are getting close to the crossover point (ie. financial independence). While I don’t plan on retiring quite this early (I’m still 25 in my mind), it’s a reassuring financial backup plan if something were to happen that impacted our main income stream (ie. losing my job, poor health etc). For example, going for $40k in dividend income, assuming 4% yield, would require a $1M portfolio; $60k in dividend income requires a $1.5M portfolio; and $100k in dividend income would require a $2.5M portfolio.

Here is a little more detail on how we came about the $60k per year in passive income: Our current annual recurring expenses are in the $52-$54k range, but that’s without vacation costs. To generate $60,000/year in passive income by end of year 2020 (age 41).Reaching this goal would mean that my family (2 adults and 2 children) could live comfortably without relying on full time salaries (we are currently an one income family). In the 2018 year-end update, despite the stock market volatility in the last quarter of the year, we still showed solid progress in exceeding our goal of $45k/year by reaching $46k in annual dividend income. As you can see in detail below, over the last quarter we have increased our dividend income from $46.1k to $48.2k which represents a 4.56% increase quarter over quarter and within 80.3% of my goal ($60k).