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Monday, January 14, 2019

Goals for 2019

I've read a few posts of fellow bloggers about their goals for 2019. Earlier I promised I would tell a little bit more about my plans for this year. Here goes!

1. Deposits

I've setup two monthly (automatic) payments.
  • € 50,- towards my tax free retirement account.
  • € 150,- towards my regular investment account.
I am eligible to fund my tax free retirement accounts with roughly € 1.400,- this year. So 12x € 50,- is € 600,-. From last year I expect to receive a tax break of € 800,-. In May 2019 I will use this money to fund my tax free retirement account for the remaining contribution room.

Finally I would like to increase my share in the company where I'm employed. I work as a consultant for a midsize consultancy firm specialised in real estate and area development. The firm is owned by its employees and everybody has the oppurtunity to participate. The value of the company and its shares is based on a fixed formula where the last three years of earnings and the forecast for the current year are averaged and multiplied by a factor. Share owners receive a dividend and the amount depends on the company earnings and liquidity position. I currently have a small stake which I'd like to increase a bit. So therefore I need to save another € 800,-.

So all in all I want to deposit at least € 4.000,- this year towards my various investments.
  • € 1.800,- regular investment account
  • € 1.400,- tax free retirement account
  • € 800,- employer stock program

2. Forward annual income (dividend portfolio)

Currently I am expecting to receive around € 1.200,- (before tax) in dividends in 2018. Because of new deposits (see #1), dividend reinvestment and dividend growth, I am targeting an annual forward dividend income of € 1.400,- (+16%). Let's break it down:
  • New deposits: +€75,-
  • Reinvestment of dividend income: +€50,-
  • Dividend growth: €75,-.

3. Four quarterly buys

I am planning to purchase new shares on a quarterly basis. I am pooling together monthly deposits and dividends to purchase new blocks of shares for around €700,- each time. Since last year I pay a platform fee of €5,- per month but this fee is deducted from any transaction costs in that month. So this works out to one "free" trade per month for a cost of €60, per year. This new fee structure is used by various cheap brokers in The Netherlands, so I really have no alternative.

4. Regular blogging

Because of my new monthly deposit and the fact that I am planning to buy on a quarterly basis gives me a lot lot of motivation to invest more time in my writing. Mainly for my blog but perhaps some Seeking Alpha articles as well. The extra income is nice but that's not the goal persé. I am targeting to write a weekly blog (so about 52 blogs in total). 

So that's it for now. Let's see how this year turns out!

What do you think of my plans?Are your plans for 2019 ready? 

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