Friday, 13 January 2017
Despite my views on goal-setting I expressed last January, I do actually have one for this year, although it's financial rather than lifestyle and so I'll allow it ...
I've been tracking all the passive income I've received over the last three years. This includes dividends, bond coupons, index-linked growth, interest, premium bond prizes and any other such distributions.
In the past, I haven't necessarily been seeking yield as a primary objective, but there's no doubt it's a nice warm feeling every time a deposit turns up in the accounts, money for which I haven't had to work.
The passive income I've received has grown naturally with the portfolio valuation, and indeed the sums I received in 2016 were 36% higher than in 2015. However, I think it's time to push it a little further and see if we could cover a greater proportion of our living costs from investment income alone.
If I take the 2016 year-end passive income figure and divide it by the 2015 year-end combined portfolio value, the income return on the total assets was only 2.3%, which just seems quite low to me. Whereas the total return in 2016 on the assets held at the end of 2015 was 15.7%, i.e. including capital growth but excluding any of the 2016 additions to the pot.
Friday, 6 January 2017
We've just arrived in the Canary Islands, where we'll spend the next six weeks in an apartment hotel.
Now that we don't have animals to worry about back home, we're again free to spend extended periods on our travels. We're no strangers to being away, I've worked in expat roles and on projects in foreign locations where we've been away for years at a stretch.
The Canaries are really the only place where there's decent weather all year round, but also easily accessible from local airports - other warmer places in the world require long flights and only tend to operate from just a few very large airports.