My 2016 Financial Overview

2016 financial overviewThat’s all Folks, 2016 is officially over! I am a bit sad as this was really a good year for me on all possible levels. If 2017 will be half this good, I would already consider myself as a happy man. This post will be a bit more detailed as the regular monthly overviews as it is not just month end, but also the end of Q4 (I review my dividend income on a quarterly basis) and the end of the year. Let’s see 2016 in numbers!

New Purchases in December

Similarly to November, I am still using the commission free period of my new broker for some mini purchases. In addition I have bought the planned amount of Prospect Capital shares in order to start my dividend snowball from January onward. The purchases of December were:

  • 5 shares of Unilever
  • 10 shares of Cisco
  • 10 shares of Kinder Morgan
  • 8 shares of Royal Dutch Shell A (a little extra in order to fill my tank from dividends)
  • 150 shares of Prospect Capital

Stock Portfolio

My stock portfolio still consists 30 individual dividend paying stocks (AKA the Dirty Thirty) plus the Vanguard Financials ETF (VFH). From now onward you can find my most up to date portfolio in a separate portfolio page. In addition, as a celebration of the new year I hereby present the portfolio overview in a nice new format! πŸ™‚

This year the stock portfolio has made EUR 5,668.58 unrealized gain, excluding dividends. For me it looks like a nice number, although I am prepared that in a few years this kind of change in the portfolio value can Β happen in a week.

Bond Portfolio

The bond portfolio still contains solely the PowerShares Emerging Markets Sovereign Debt ETF (PCY). In EUR I am having an insignificant unrealized loss on it. Nevertheless I am planning to keep it for a long time and also keep adding extra holdings to it in the future. Based on my ideal portfolio allocation I still need to increase the weight of bonds during 2017.

Real Estate

The only investment real estate we currently have is still the garage, which currently generates EUR 70 per month from a long term renter. One of my most important financial goal for 2017 is to add a rental apartment to our real estate portfolio.

Cash

Here I only record our emergency fund plus the cash sitting on the investment accounts. 2016 is closed with EUR 10,282. Probably the majority of this will be invested in the new rental property, in which case the emergency fund has to be rebuilt.

Dividend Income

2016 dividend income

I really like this chart as it clearly shows that by investing continuously, the passive income that can be generated from dividends keeps on increasing over the time.

I’m trying to select companies into my portfolio that are stable dividend payers and even increasing they payout over the time. In December AES Corporation has announced an over 9% dividend increase.

My 2016 Q4 net dividend income was EUR 281.96, which means I have closed the year with EUR 846.45. My 2017 yearly goal is EUR 1,600, so I’m planning to double the amount of received dividends. This might be a bit challenging as we are planning to purchase an investment property, plus our saving rate will most likely decrease as baby Roadrunner is starting the day care. Nevertheless life would be too boring without great goals, wouldn’t it?

 

The Road to One Million

So where are we exactly on the road to one million?

Early retirement portfolio value 2016 december

The exact value is EUR 68,885. It will take a while even to our first milestone of EUR 100,000, nevertheless eventually we will get there. What is good to see is that looking at this chart I can proudly say that there were no negative months in 2016.

The portfolio value is rising steadily. There are two months with more significant gains: June is due to the extra investments as we have received our bonuses and holiday pay at that time. November is due to the Trump rally both in the stock market and the US dollar.

In 2016 the portfolio value has risen almost EUR 35k. The same amount of gain in 2017 would put us over EUR 100k, which I have initially projected for around mid 2018. Let’s hope the bests!

 

Net Worth

I have finally calculated our net worth. This was long outstanding, even though the more I think about it, the more I find this metric important. I of course don’t want to achieve the EUR 1 million portfolio value while I’m having EUR 1 million debt πŸ™‚

 AssetsLiabilities 
HouseEUR 385,000EUR 325,090Mortgage
Shares & BondsEUR 45,884
Rental GarageEUR 13,000
CarEUR 6,000
CashEUR 10,282
TotalEUR 460,166EUR 325,090Total
NET WORTHEUR 135,076

Our net worth is EUR 135,076. I have calculated with the most important assets, plus (fortunately) the only liability. I am planning to update this calculation once in every half year in order to see that our financial health is on track.

 

Blog Facts

The Road to One Million has been launched on 1st September 2016. During the year Google Analytics has recorded 3,492 pageviews from 788 individual users. So far this is definitely not something to show off with, but it is somewhere to start from.

I think the reason behind these numbers is the fresh blog and the far from perfect SEO.

crappy content

Yes, and the crappy content πŸ™‚

Nevertheless what I am really happy about that half of the visitors seem to be returning ones. For those 394 of you out there: thank you for being here and I hope I can provide some useful and interesting content in the future. It wouldn’t make sense without you guys!

Happy New Year Everyone!

 

 

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21 thoughts on “My 2016 Financial Overview

  1. Mustard Seed Money

    Sounds like 2016 was a great year for you. I have to admit that it was a pretty great year for me as well and I’m sure for my wife. She doesn’t have to listen to me constantly talking about personal finance. I finally found an outlet and have really enjoyed the community.

    Here’s hoping that 2017 is even better!!!

    Reply
    1. Roadrunner Post author

      Yes, 2016 was great! Even if it was just half this good, I’d be happy. We need to appreciate what we have, there are some crazy things out there at other parts of the world. Let’s hope 2017 will be better for everyone!

      Reply
  2. Divnomics

    Loving the crappy content here πŸ™‚

    Congrats on reaching such great achievements over the year. Our dividend income is almost similar, with only 3 euro in difference…
    Just keep on going, before you know it you will have the 1600 euro in dividends coming your way!

    We also experienced quite a good year in 2016, whereas we hope to gain even more in 2017. We still have a car to sell, and no remodeling plans (like we had in 2016). So more money for stocks!

    Reply
    1. Roadrunner Post author

      We all need to start somewhere πŸ™‚ I’m positive about 2017 and I think EUR 1,600 is an achievable goal. That would almost mean adding an extra month of savings to the year without having to work an extra month for it. It’s easy to see these benefits of investing even at the beginning of the journey.
      Hope you guys can sell your car soon! Its price would already allow you to increase your dividend income with double digit percentage…

      Reply
  3. Team CF

    Hey RR,
    Wow, 2016 was good to you. Great performance all around. We certainly hope that 2017 will be as successful, you might even get to your €100k target sooner than you think.
    Take care!

    Reply
    1. Roadrunner Post author

      Thank you! It’ll take a few more years to get where you are now, but the good thing is that you can see the results from the very beginning of the process. I only wish I started this years earlier…

      Reply
    1. Roadrunner Post author

      Hi there, thank you for stopping by! Yes, so far so good. Hope the pattern stays like this in the following years πŸ™‚ Best wishes for 2017 to you too!

      Reply
  4. Pingback: The Net Worth of Personal Finance Bloggers

    1. Roadrunner Post author

      Thank you for your comment. I’m indeed planning it to be the foundation of a long term passive income. Besides of continuously adding new positions, I would like to change it as little as possible.

      Reply
  5. Dividend Diplomats

    Congrats on the great year. What more do I have to say than positive things all around. You are more than halfway to 100,000 Euro and soon you will be tacking on another zero at the end of that. The blog pageviews will grow with more articles and interaction too. Similar to dividend snowball, it takes a little to get going. Once it does, then watch out! Keep up the great work!

    Bert

    Reply
    1. Roadrunner Post author

      Thanks Bert! Reaching EUR 100k by the end of the year would be a great result. Let’s see how it goes. I hope the blog traffic will also grow as you say, but I’m already happy that there are some regular visitors and useful comments πŸ™‚ Everything else would be an icing on the cake!

      Reply
  6. DivHut

    Just keep the blog going and it will grow over time. Too often people stop blogging just as it hits the ground running. Like dividend investing, it can take time to really see growth. Congrats on a nice quarter of passive income. As you graph shows, you are making some great progress. Like the Unilever pick up in December. I have adding to that name every time the stock goes below $40. Keep it up! Here’s to a strong ’17!

    Reply

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