4Q 2023 passive earnings: Why the smile?

In my first weblog publish of the yr, I stated that 4Q 2023 passive earnings ought to are available in weaker.

It is because OCBC and UOB solely pay dividends in Q2 and Q3.

So, lacking these main contributors, it is just affordable to anticipate decrease passive earnings numbers for me in Q4 2023.

Additionally, I anticipated Q4 2023 passive earnings to be decrease, yr on yr.

It is because my investments in REITs and property builders had been producing much less earnings for me in 2023 in comparison with the yr earlier than.

Excessive rates of interest are fairly difficult for some entities.

Happily, DBS pays dividends quarterly.

Being one other substantial funding in my portfolio, hopefully, this would offer a little bit of a cushion.

That is particularly when DBS elevated their dividend per share not too way back.

My persistence in constructing and strengthening a T-bill ladder in an atmosphere of upper yields also needs to assist.

All of that went on in my head.

So, how did issues prove?

Complete passive earnings generated by my investments in 4Q 2023 was:

$ 24,849.44

That is some 2% decrease, yr on yr.

It was $25,331.81 in 4Q 2022.

Hmm, the decline was not surprising.

Nonetheless, just like the title says, I smiled as a result of it wasn’t too unhealthy.

2% decline on a comparatively smaller sum.

Not too damaging.

Because of robust Q2 and Q3 numbers, full yr 2023 registered an enchancment.

Q2 and Q3 noticed bigger share good points on comparatively bigger numbers, in any case.

Every little thing considered, fairly respectable.

Full yr 2023 noticed a 12% enhance in earnings generated by my funding portfolio, yr on yr.

Complete quantity: 

$231,495.19

This in comparison with $205,999.73 for full yr 2022.

To new readers of my weblog, that is in all probability all very spectacular.

Nevertheless, readers who’ve been following my weblog for a few years would know that weblog posts like that is extra to encourage than to impress.

If AK can do it, so are you able to!

I’m not simply saying this.

I imply it.

It’s about being prudent with cash.

It’s about conserving our wants easy and our desires few.

It’s about being affected person and getting wealthy gradual.

It’s about being pragmatic and staying invested in bona fide earnings producing belongings.

If all of it sounds very boring, nicely, it’s.

It’s all about staying grounded and marching in direction of that pot of gold we all know is ready for us to unearth.

Unearth?

That appears like work.

Sure, it’s.

There isn’t a free lunch on this world.

It’s not about going after what could possibly be there however what we all know is there.

So, what’s my technique for 2024?

Extra of the identical, actually.

I anticipate my funding portfolio to proceed producing earnings for me this yr, barring earth shattering occasions.

If one other pandemic strikes or if warfare occurs on a worldwide scale, anticipate earnings era to decelerate or stall.

I can solely hope that sanity prevails and that extra folks in energy are keen and capable of keep away from warfare on a bigger scale.

Struggle is absolutely avoidable in contrast to pandemics.

Sadly, many human beings are egocentric and slender minded.

When they’re put in positions of powers, they might then affect the gullible to do the unthinkable.

This isn’t an issue unique to much less developed nations or politically much less steady areas on the earth, in fact.

I’m spending a while to speak to myself about this as a result of in comparison with financial challenges, this can be a larger downside.

The place financial challenges are involved, excessive inflation has been tamed or so it appears.

Expectations are for rates of interest to begin declining someday this yr and there are some consultants who suppose that the Fed will deliver rate of interest all the way down to underneath 3% with a view to guarantee a smooth touchdown.

That is excellent news for REITs, particularly these that are extremely leveraged in addition to these which have a giant a part of their debt on floating charges.

For banks, it might imply moderating earnings as speedy rate of interest hikes finish a powerful tailwind.

Nonetheless, banks have confirmed many times that they’ve been capable of ship earnings development over time.

So, staying invested is what I’ll do.

Earlier than I finish this weblog publish, I’ll remind myself of the next.

“There’ll come a day when my passive earnings generated exceeds my earned earnings doing what I do.

“If I’ve at all times been prudent with cash, that’s in all probability the day I grow to be financially free.

“That’s once I now not must work for cash.”

No extra unearthing to do.

So, imagine me once I say this.

If AK can do it, so are you able to!