My passive income goals for 2013 are based on my investments in a dividend growth portfolio and two peer-to-peer lending accounts with Lending Club. The below goals are a modification from my original goals as I have slightly changed my direction and am increasing the overall numbers for the remaining areas. Challenge yourself and you will succeed!
Lending Club – Net Interest of $1,600
This goal will give me a greater than an 11% real return on my two Lending Club accounts and single Prosper account. Considering I had a substantial amount of cash drag in the beginning of the year, and the waves of defaults haven’t really started, this will be a tough goal to achieve. To break this goal down even further, I am anticipating trying to hit $1,480 in net interest income from Lending Club and $120 in net interest from Prosper. As a further note, the net return is net of all fees collected on payments and any charge-offs or defaults of notes in the account. Additionally, all repayments will be reinvested into additional loans throughout the year.
Dividends – Total Dividends of $1,000
Having not previously set, analyzed, and pursued a dividend income goal with my investments I ended up low-balling my original dividend income goal. Having made a few more investments since I originally set the goal, and a commitment to growing my dividend base I decided this goal was going to be a stretch, but with some luck, and additional investments, I should be able to get close. At this time, I am only going to include my Roth IRA and taxable dividend portfolio-specific accounts in these calculations. My 401(k) and other investment accounts will be maintained separately at this time.
Total Passive Income
In total, I am hoping to hit the $2,600 mark in passive income from these investments. I will be updating my progress on these goals on a monthly basis. Please find my progress year-to-date below (note the first five months are being calculated on my original 2013 passive income goals):
Passive Income (PI)
To get a different look on how my passive income is continuing to grow in 2013, check out the chart below: