The Investment Road to Freedom

December 27th, 2012 at 1:24 pm

Review of 2012 Goals and a look at 2013

in: Goals

Well 2012 is almost done save for a few days so that means it is time to review the goals I set myself for 2012.

  • Start a blog DONE
  • Hit the 5 figure mark for the first time DONE
  • Reach $12000 total fund value DONE
  • Pay of car DONE
  • Receive $100 in dividend income ($49.01 for the year) FAILED
  • Receive $200 in options income ($47.07 for the year) FAILED
  • Save $12000 for the year ($7800.26 for the year) FAILED

So out of my 7 goals for the year I achieved 4. Reaching the 5 figure mark was a big achievement. It made my fund value not seem so small (which it is – for now!). Not reaching the dividend and option income goal was disappointing but not surprising. I really did not what that figure would be when I set it. Even though I did not list it as one of my goals, improving my knowledge about “investing” has been a major success. I have learned some important lessons early on (my purchase of COOL at the beginning of the year has reminded me why I should stay away from penny stocks).

So here are my 2013 Goals :-

  • Reach $25000 total fund value
  • Pay of sofa ($2300 at end of 2012)
  • Receive $150 in dividend income
  • Receive $200 in options income
  • Save $12000 for the year
  • Pay of credit cards ($3990.82 as of Nov 2012)

Here’s to 2013. Hopefully that will end with 6 out of 6!

  • Liquid
    12:38 am on December 28th, 2012 1

    Options income sounds interesting. It’s not something I’m familiar with though. Do you need to already own a lot of stocks before you can trade options efficiently? Maybe I will learn it in the future 😀 Good luck with your 2013 goals! But what is this $150 in dividend income? I KNOW you can do better than that. Go for $200 at least, or else it’s not even a challenge 😛

    9:04 am on December 28th, 2012 2

    There is number of possibilities with options. The two that I am interested in are Covered calls and naked puts (not done one of these yet). Basically the calls and puts are for 1 contract which is 100 shares. You can buy/sell as many contracts are you want. I do the Covered calls to basically create an extra dividend payment – though you have to be careful your stock is not assigned away from you. But you could buy your call back to stop this from happening. An example would be my purchase of 100 shares of Ford (stock price plus commission). I then sold a covered call with a strike price of $15 for which I received a premium minus commission. If at expiration date the stock is below $15 I keep my shares and the premium and repeat. If it is above $15 my shares are assigned away from me at that price. I still keep the premium. It is a nice addition to the dividends.

    Naked puts work in a similar way in that you don’t own the shares at the beginning of the trade. You receive a premium for the put. An example would be wanting Microsoft currently trading at $26.78. You sell the put at a strike price of $26 receiving a premium of $90 minus commission. You keep this no matter what. If the price of the stock on expiration date is above $26 the trade is over and can then repeat. If it is below $26 then you buy the shares at $26 (due to the put premium your cost basis would be lower than $26).

    I would only do these on companies I want to own!

    I think you are right on the $150. I may increase that. two or three more buys in 2013 should get me to that figure.

    Hope you do well for 2013!

  • Brick By Brick Investing | Marvin
    8:51 pm on December 28th, 2012 3

    Great goals don’t get to hung up on the failures in 2012. You know what they say, if you’re not failing, then you’re not pushing yourself. I love covered calls and naked puts myself. Although I sell naked puts on blue chip dividend paying stocks that are cheap.

    10:07 am on December 29th, 2012 4

    Thanks Marvin. Hope you have a great 2013!

  • JC @ Passive-Income-Pursuit
    3:50 pm on January 3rd, 2013 5

    Glad to see you back! I only hit about 60% of my goals for the year so I’m in about the same boat as you. I’m still setting very aggressive goals for 2013 to push myself even closer toward early FI. Best of luck in 2013!

    I also want to start getting back on the option income again in 2013.

    7:06 pm on January 3rd, 2013 6

    Thanks JC for stopping by. Hope you have a great 2013!