2007 Passive Income Summary
One of the objectives we have is to generate incomes, dividends and capital gains, from our investments and hope one day these what I called passive incomes will replace the major part of our salaries before tapping into savings in our tax deferred accounts. In 2007, we continued to make progress in growing this part of our investments.
Our passive incomes consist of three parts:
- Dividends from mutual funds, stocks, and ETFs;
- Capital gains from mutual funds;
- Interests from savings and Treasury bills.
Except Treasury bills, all the year-end mutual fund statements were in last week, so I tallied the numbers up last night and I am very happy to see that the result from last year exceeded my expectations. In 2007, our passive incomes from the above three sources are listed in the following table.
| Name | ST capital gain per share |
LT capital gain per share |
Dividend per share |
Total income |
| ADVDX | $0 | $0 | $1.641 | $537.48 |
| BUFSX | $0.276 | $2.379 | $0 | $1155.93 |
| CGMFX | $8.211 | $1.695 | $0.052 | $3391.6 |
| DODFX | $0.343 | $1.158 | $1.26 | $1041.31 |
| DODGX | $0.753 | $11.452 | $0.52 | $1469.54 |
| OAKBX | $0 | $1.5056 | $0.6046 | $846.11 |
| PRNEX | $0.29 | $2.55 | $0.54 | $328.45 |
| PRSVX | $0.03 | $4.85 | $0.28 | $1185.28 |
| TAREX | $0.167 | $3.085 | $0.595 | $338.07 |
| TGLDX | $0.1986 | $0.459 | $8.132 | $1828.31 |
| LFC | $0 | $0 | $ | $452.69 |
| MO | $0 | $0 | $ | $102.75 |
| MSFT | $0 | $0 | $ | $60.00 |
| PEY | $0 | $0 | $ | $247.27 |
| PGJ | $0 | $0 | $ | $105.82 |
| PHO | $0 | $0 | $ | $33.05 |
| PID | $0 | $0 | $ | $93.59 |
| TSM | $0 | $0 | $ | $613.66 |
| VBR | $0 | $0 | $ | $109.77 |
| Emigrant Direct | $ | $0 | $0 | $82.24 |
| FNBO Direct | $ | $0 | $0 | $2317.99 |
| HSBC | $ | $0 | $0 | $651.04 |
| IGOBanking | $ | $0 | $0 | $789.98 |
| ING Direct | $ | $0 | $0 | $22.42 |
In addition, we have several other stocks that paid dividends in 2007, including BAC, PG, and PGN. However, since we only have a very small number of shares in those stocks, contributions from these investments are too small and, thus, not included in the calculation.
Passive incomes from three different categories, mutual funds, stocks/ETFs, and savings are:
- Mutual fund dividends and capital gains: $12,122.08
- Stock and ETF dividends: $1,818.6
- Savings interests: $3,863.67
The total passive income of 2007 is $17,804.35, up 75.75% from one year ago, when we generated $10,130.32. At the end of 2007, we have $363,776.75 in taxable investment and savings accounts, up $110,943.89 from December 2006. Of those gains, passive income made up about 16% of the net change in taxable investments in 2007.
As we continue to add new money regularly into our taxable investments, especially, into mutual funds, distributions will also grow. At the end of 2008, I hope the total passive income from taxable accounts could reach $30,000. That represents an annual growth rate of about 70%.
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Way to go Sun! Im sure in 2008 you will have much more
Passive income is the true way to financial freedom as it puts your money on autopilot!
Outstanding growth in 2007! I hope you increase it in ‘08!
Very interesting summary. Seems like you have earned almost 5% in dividends and capital gains on your taxable accounts in 2007.
Did you estimate how much this will cost you in taxes for the year, even with the lower tax rates for dividends etc? Wouldn’t it be better to hold more of your money in tax-advantaged accounts instead? If you have already maxed out your retirement accounts, then it makes sense, but otherwise it seems to be expensive, since you don’t seem to need the income currently.
congrats!
I’m making nearly $2k/mo from my passive income streams.
Nigel: As you can see, most distributions qualify for the lower, 15% tax rate. My rough calculation shows we will need to pay about $3,500 extra taxes for our passive income.