We have another set of Milestones that we can scratch off of the TOL’s list. After scratching and clawing our way towards financial freedom through passive income, we have finally reached two milestone that is very critical to us. The peculiar thing about this is, even though we are posting about it now, we actually achieved this only two months ago.
The New Life Portfolio has crossed the $10,000 threshold in both cost basis and portfolio value.
The New Life Portfolio (cost basis and value) has moved from 4 digits to 5!
Our portfolio is our largest producer of passive income needed to achieve financial independence. Therefore, it’s only logical that we inject as much capital as we can possible muster up to purchase high-quality, dividend paying companies that we believe will continue to pay growing streams of income for years to come.
To see the portfolio cross the $10k mark is very humbling and at the same time motivating. It humbles us because it was just a year and a half ago we began this journey. Starting from $0 and transitioning to a one-income household makes reaching FI seem like a daunting task, but we have faith it can happen. I’ve read the stories of others that it happened to. Having a $10k portfolio is motivating because it is producing income, and the income is starting to get serious. Every purchase and every dividend puts us that much closer to realizing our dream. That’s what a $10k portfolio means to us.
I mentioned above that we actually achieved this milestone two months ago. On June 3 of this year, I took over Mrs. TOL’s ROTH account and sold whatever index fund she was invested in and purchased CVS. At the time and for the next two months we classified that purchase as investments and not part of the New Life Portfolio. Well we decided to change that because I monitor it the same as all our other stock positions. The only difference is the purchase of CVS now resides in a tax-sheltered account, while all our other holdings reside in a taxable account. The reality is they all pay dividends that go towards our Financial Independence so why treat it differently?
We are full steam ahead in the “accumulation” phase of the portfolio. I can feel the effects of that snowball as it gains momentum and gets bigger and bigger. Individual dividend payments and overall passive income are growing larger every month and every quarter and are reinvested into our overall Net Worth.
We’ll see you all at the $25,000 mark…real, real soon…