2020 Financial Goals: $41,500 In Passive Income

Yes, indeed, you are reading it right. We expect to receive $41,500 in passive
income in 2020. Wow! It is like we have an imaginary member of our family working hard and helping us achieve our goals. We have been on our financial journey only six years, and it is incredible to expect such a return in 2020.

In 2015, we made our first investment in stocks that pay dividends, and then we set our first financial goals for 2016. It was a first step, and we did not know where it would take us. Start your journey and the results will come! Regarding personal financial goals, no one cares more about your money than you do.

I would like to thank 2019 for being very good to us. We almost fully achieved our goals, but as they say, if everything is under control, it only means you are not moving fast enough. We traveled a lot this year — from Orcas Island to Orlando to cruising in the East Caribbean. Thanks to our passive income streams, we stayed on the course to financial freedom, even while spending money on vacation.

Let’s review how our 2019 performance served our financial goals. We set them here.

2019 in Review:

We received $11,278 in dividends, beating our goal by $778. We exceeded our dividends income goal mostly because of a Genworth MI Canada (MIC) special dividend. MIC paid us a dividend of $784 beyond its regular distribution of 5.83 percent. The current MIC yield is 3.81 percent; however, taking into account dividend hikes and dividend reinvestment over time, our yield was 5.83 percent. This is fantastic! We are close to receiving $1,000 in monthly income solely from dividends.

We profited $16,375 from our investments in private mortgages.

Our investments in Lending Loop resulted in a return of $2,328, which was significantly greater than the $2,040 we expected.

Credit card cash-back rewards totaled $1,397; however, we must watch our spending — our long vacation contributed significantly to this number.

Our income from rental properties was a negative number (-$3,444) because we refinanced one of our condos. We borrowed money against our property, which is what brought this number to negative territory; however, it was offset by income from private mortgages.

So, in total, our passive income for 2019 was $27,934.

This is amazing! We did nothing to receive almost $28,000. Although it is $2,000 less than we anticipated, I am very proud of our achievement.

Simply reinvesting $28,000 will make you a millionaire within 15 years, but we are going to accelerate this growth by investing more in income streams that generate passive income.

Looking Ahead to 2020:

Dividends $13,000:

Our current projected income from dividends is $11,140. That number does not include dividends hikes in 2020. I am assuming that some of our holdings will increase their dividends despite uncertainty in the market now. Along with DRIP I would estimate the organic increase as of $400 in 2020.

We are going to maximize our TFSA contribution in the coming year. The TFSA limit is $6,000 in 2020, so the combined limit for my wife and me is $12,000. Receiving a conservative 3.5% profit on $12,000 would yield $400.

To compensate for receiving income from real estate, we will deposit $15,000 into our RRSP accounts. By doing so, we would avoid paying taxes on the income from real estate. At a rate of 3.5% that would add about $525 to dividends.

As a result, all anticipated dividends in 2020 would total $12,465.

We will challenge this goal through a stretch goal of $13,000 in dividends. It is achievable through allocation of additional capital toward dividend-paying companies.