Thursday, October 6, 2011

Mental gaps

After the financial post I decided to do a broad overview of all my finances and investments. I've been hanging out at www.earlyretirementextreme.com and going through some very interesting articles/posts. Lots to learn over there but more importantly I wanted to know how I would do if I was totally unemployed. I have always thought that my financial knowledge was great and that I was implementing what I needed to do to achieve my goals but in reality I have only put it on autopilot and in the hands of others.

If I was unemployed my investments would be capable of supplying  9%  of my basic expenses without drawing down the capital. NINE...I feel ill. This comes from dividends (common stock) and capital gains (mutual funds).
For all the time I have spent building elaborate investment spreadsheets all I have to show for it is a single digit and that is only possible because I no longer pay rent. If I include rent I would be down to 4% but if I went to a car-free lifestyle I would be up to 16%

Most of that 9% came from recent purchases of high dividend stock.
The more I learn about stocks and the market the goofier my common stock purchases seem to be (almost lottery ticket goofy) but now that I have a tiny bit more knowledge I feel that I can increase my percentages.
I wish I had known what I know now before I was hired, I could  have put away some serious cash and would feel significantly better about my financial situation.

Ugh, 9...

How many paychecks would it take to totally cover your daily expenses if you purchased shares of CEL, AGNC or CIM?

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