Admittedly, I have been away from my blog for some personal reasons but all is good now. So I can get back to things I enjoy, like dedicating time to Shake the Money Tree. Completing the July 2021 blog financials, I realized that even though I haven’t been posting, the passive income streams are starting to take from when I started.
Passive Portfolio Pieces
Every month, here is what I can expect in how I define true passive income. It is still a relatively small part of my monthly income, but as one of my guiding principles are: need to start somewhere.
Shake the Money Tree Savings Account via Ally Bank
Total Investment: Like to keep to a minimum and invest in other asset classes
Monthly Passive Income (cash realized): usually less than $0.05
Annualized Performance Return: 0.50% stated interest rate
Monthly CD Ladder
Total Investment: $1,223.83
Monthly Passive Income (cash realized): $1.10
Annualized Performance Return: 1.08%
Double Dividend Strategy with SPHD ETF
Total Investment: $4,370
Monthly Passive Income (cash realized): $40 (low to mid point range of Double Dividend Strategy)
Annualized Performance Return: 10.99%
Monthly Dividend Ladder (CSCO/PFE/VZ)
Total Investment: $1,514.48
Monthly Passive Income (cash realized): $2.22 low end of range
Annualized Performance Return: 1.76%
This is a trailing % as I am continuing to build up my position. Expecting this to flatten out around 3-4%
Putting it all together
The resulting weighted average return of the passive income sources listed above is 7.2%. And for the reasons noted in the Dividend Ladder, I am expecting it to climb from there. With those rates, key is to capture as much capital as possible and continue to grow the money tree through these types of passive income streams.
As noted earlier, this income represents approximately 5%, a small fraction of the monthly income. The other sources of revenue will continue to help earn as much capital as possible to deploy back into the passive portfolio.
The other question that comes up is: Why don’t I just put all of available dollars into the highest earning portfolio investment of SPHD. The simple answer is it is all about diversification and building up on the fundamental investment pyramid, another core principle of Shake the Money Tree. Upon achieving ~$4,500 in the Dividend Ladder, I will turn my focus on the next passive step….albeit I am already planting some seedlings in the monthly covered call strategy (currently with PLX which will be another post shortly) and crypto with Bitcoin and Ethereum.
Seeing these results excites and fuels me to drive faster on growing the money tree as fast and as high as possible.
I am a finance professional with over 20 years of experience and very passionate about all topics related to finance; enjoying the aspect of teaching and educating others along the way. All in all, I will show you how big this money tree can get over time as I get the branches (Earn, Save, Invest) as high as possible…Click here to see my financial progress to date: How high is the Money Tree?
