Important in every aspect of life is the ability to set tangible and personal financial goals. By setting specific and quantifiable goals, I am accountable to myself, and by extension, you the reader. My passive income goals for 2013 are based on my investments in a dividend growth Roth IRA portfolio and a peer-to-peer lending Roth IRA account.
Lending Club – Net Interest of $1,000
This goal will give me an approximate 10% net return on my $10,000 dollar investment in Lending Club. This goal takes into consideration the fact that as of the beginning of February I am less than 60% invested in notes. As such, this will be a tough goal to achieve without outperforming the 10% throughout the year as I gradually invest the entire investment. 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 $700
Having not previously set, analyzed, and pursued a dividend income goal with my investments I have decided to dedicate some serious work into growing my dividend base, and expanding this portion of my retirement savings. At this time, I am only going to include my Roth IRA account in these calculations. My 401(k) and other investment accounts will be maintained separately at this time.
Trading: Options Income – Total Options Income of $300
In conjunction with growing my dividend growth portfolio, I am looking to put into place a very basic options strategy. This strategy will involve selling calls and puts with the goal of increasing my return for both my idle cash, as well as any positions I currently hold. I am very new to options trading, and am really looking forward to this learning opportunity. Depending on my success during 2013, I will consider making this a permanent part of my investing strategy in the future.
Total Passive Income
In total, I am hoping to hit the $2,000 mark in passive income from these investments. I will be updating my progress on these goals on a monthly basis. This post, and subsequent updates, can be found under the goals page.