My BIG “why”?

My BIG “why”?

That’s the question, why?

Why build the Daily Dividend Investor portfolio?

Why seek passive income?

Why bother at all?

For me there are TWO answers:

1. Spending time on new business projects.

and

2. Spending time with my kids.

There is nothing wrong with a 9-5 job, I’ve had several of them and I’ve been lucky enough to enjoy the work that I had. Whether it was working in a warehouse stocking shelves or configuring large computer networks for a Fortune 500 software company – I’ve always found work that I loved.

But the problem with a 9-5 job is that it means you are at the mercy of some else (your boss) when it comes to the allocation of your time.

For me, I get bored easily, wanting to constantly move from one challenge to the next. Most “jobs” don’t give you that flexibility – they prefer that you master a few tasks and repeat them again and again and again.

Earlier this month my wife and I decided to take the kids out of school for a couple of days for a quick road trip to San Diego. We spent 5 days together as a family, in the sunny SoCal weather enjoying Legoland, the San Diego Zoo and several local beaches, not to mention some of the best Mexican food around.

• I didn’t have to think about asking (permission) for time off.
• I didn’t have to worry about (not) getting paid.
• I didn’t have to constantly check emails and voicemails to make sure all was fine back at the office.

I spent my time focused on my family and enjoyed the time we had together.

Because we have the flexibility to go on trips like this when we want, we can avoid the peak travel times and the crowds that go with them. It makes for a lot less stressful trip!

The DDI portfolio is one of several passive income streams I’ve created and  it currently is the smallest in the size of income it generates for me. However, I expect to grow it consistently over the next few years. My ultimate goal would be for the DDI portfolio to generate $5000.00 /month in passive unmanaged income.

Right now the growth of the DDI portfolio is one of my main projects. I’m positive that over time, I will find newer more interesting projects – but if I build it with a firm foundation, I know that it will continue to serve me well for the long-term.

Eventually, it is an asset that I will pass along to my kids, and in turn perhaps it will someday help their kids as well – a legacy of sorts. For now I am enjoying the journey of continuing to build the DDI portfolio and am thankful that it is already providing support for my family to enjoy an occasional vacation and time together!

Just TRY s#!7 – it’s OK to fail

I fail a LOT!

Let me say that again….I FAIL A LOT! Sometimes people ask me why I buy this stock or that stock or even why I’m even invested in stocks at all? The stock market is a casino, it’s rigged, it’s a scam.

It’s true, not every investment you make is going to rise – but the bottom line is, if you don’t TRY how will you ever know?

I once heard a great quote, “Show me a man who’s never lost money in an investment and I’ll show you a liar.”

The reality is you have to have vision and patience to be a successful investor. You have to take action and keep at it for a long time. Too many of us have become part of the “microwave” generation – we want what we want and we want it NOW! (or with the case of the microwave – within 30 seconds)

It’s why day-trading doesn’t work – when you invest your money, whether it be in stocks, oil, real estate, goats, stamps or Pokemon cards – you just can not be certain whether the next move your investment makes is up or down. You have to be willing to watch your investment fall before it rises or even rise before it falls. Over the short term, no one knows which way an investment will move.

But that’s where TIME comes in, it’s the great equalizer.

Lessons learned- Terra Nitrogen (ticker: THN)

Back in the late 1990′s I was looking for a few good income producing stocks to add to my portfolio. While watching NBR (Nightly Business Report) on my local PBS station one night I came across what looked to be a possible candidate: Terra Nitrogen (ticker: THN).

The stock was tradingin the $30-$40 range and was paying out a quarterly dividend of between $1-$3/share! I knew that this was a riskier play, but they looked to have a good niche business providing fertilizer products to mid-west farmers. I was pretty sure that farming would be around awhile and the payouts would likely continue. However by late 1998 because of some business problems the company cut it’s dividend to $ZERO and the stock price fell over the next few month, eventually reaching a low of $3.50.

My great income producer now not only wasn’t generating income, but the value of the shares had dropped by 90%! I felt vindicated that I had sold my shares in the $6 range, well off the lows. A long 2 years past and in 2000 the company reinstated a greatly reduced dividend of $.22/share. But the glory days had NOT returned – as this payout would last for only 3 quarters and then would take a 1 year break. This process of starting and stopping the reduced dividend payouts would continue until 2004 when the share price had eeked it’s way back up to $9/share and had raised it’s dividend to about $.50/share.

The business began to flourish again and the share price and dividend continued to rise. Today the quarterly payouts are again in the $1-$3 range and the share price is well above the $100/share mark. Not only has the payout increased but the shares have increased by over 2000% from their all time lows.

Commit to the long term

As I think back on this lesson, I am now recommitting to holding my positions in the DDI portfolio for the long term. For me long term is 20/30/40 years. I am optimistic that the current markets are offering good income producing shares that will continue to grow both cash flow and price appreciation over the duration of the DDI portfolio.

Time for a mini-vacation at the lake…

Things are looking good!

The DDI portfolio is cruising right along generating passive income of  $283.89  month to date so far in July.

With about a month left of summer, before the kids have to go back to school, we’re going to take advantage of the great California weather and head on out to California’s Gold Country with a short stay at  New Melones Reservoir in Central California for a few days of boating, wake-boarding and tubing with our family and close friends.

Passive Income buys Time & Freedom

The DDI Portfolio builds steam like a train!

It’s time like these, that make me appreciate that I can take time off and know that I’ve still got a stream of income coming into to pay my bills.

Each day the DDI portfolio continues to grow the income stream, and is quickly approaching my target of paying out $500/month on a consistent basis.

Family time is something we highly value, so I figure now’s a good time to enjoy some of the fruits of my labor and take a few days off from managing my trading and income portfolios.

While catching some rays and enjoying an ice cold Blue Moon or Anchor Steam brew, I’m going to take some time to work on my 6 & 12 month life and business plans. Taking time out to recharge really helps to clear your mind and figure out what is most important in your life. I’m excited about coming back with a great action plan in had ready to roll.

But for now, let’s have some fun in the sun!