Our portfolio generates a passive income in 20 years time equivalent to about 73 000 dollars per year which covers our our annual living costs.
The goal is based on the following of assumptions:
- The passive income we want to achieve in 20 years time is at about 73 000 dollars annually (the amount is adjusted for inflation with 2% per year).
- Our family will save a monthly sum of about 2 000 dollars, that will be adjusted with 2% yearly (Roughly the amount our wages will increase yearly).
- In the beging of 2014, we had a stock portfolio worth approximately 37 000 dollars with a " yield of cost" of 4.58% .
- I estimate the brokerage cost associated with buying to about 0,7%
- Annual fees related to our savings account are estimated to 2.5% per year and the passive income is reduced with this amount.
- Dividends and new savings are invested in stocks with a dividend yield and a approximated dividend growth, according to the table below.
| Yield Today | Yearly Dividend Growth Over a Period of 20 Years |
| 0,5 % | 28 % |
| 1 % | 22 % |
| 1,5 % | 17 % |
| 2 % | 16 % |
| 2,5 % | 14 % |
| 3 % | 12,5 % |
| 3,5 % | 11 % |
| 4 % | 10 % |
| 4,5 % | 9 % |
| 5 % | 8 % |
| 5,5 % | 7 % |
| 6 % | 6 % |
| 6,5 % | 5 % |
| 7 % | 4,3 % |
| 7,5 % | 3,5 % |
| 8 % | 3 % |
| 8,5 % | 2,5 % |
| 9 % | 1,5 % |
| 9,5 % | 1 % |
| 10 % | 0,5 % |
| 10,5 % or more |
No growth is need
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In the end of each year we will asses our progress against the chart below.
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