Goals for 2017

A new year and new set of goals/target to set. Lately, I’ve been dwelling on goals to set — not just financial but also personal and professional goals. To make steady progress on a regular basis requires determination, patience and of course a target in mind. Setting and writing down goals and working towards them are one of the best ways to make progress. As far as financial goals go, the long term goal still remains the same — achieve financial independence that will provide us with more freedom to do what we want out of life. Following are the goals that I am setting for 2017.

Goals for 2017

  • Total passive income of $10,000 – This may not seem like a big jump compared to the $9,000 goal from 2016. But regular readers may be aware that I have gotten more defensive in my investing and moved to a cash-heavy position, which means that heavy lifting will have to be done by another stream. I have always followed a multipronged approach to generating passive income. Majority of the passive income was generated via investments (dividends)…but there are plenty of other sources too. I am looking at other ideas such as trading/writing stock options to plug the hole and make the difference and if I can reach $10K in passive income, I will consider it a successful year.
  • New portfolio for our daughter – In 2016, my wife and I welcomed our daughter. Time to set things in motion for the financial well being of our baby daughter.
    • We have opened up a new RESP (Registered Education Savings Plan) account, which allows us to save and invest for her post-secondary education. The plan allows us to get education grant money from the government and is tax-deferred on the income generated. We intend to start investing this money soon and will post an update on which stocks/ETFs we chose.
    • In addition to the RESP plan, we intend to start a DRIP plan to put away a small amount of money each month (starting off with $100/month for now) that will be her nest egg when she is an adult. Time is one of the most powerful weapons in an investor’s arsenal and starting off a DRIP plan allows us to let the investment compound over the course of 20-ish years. I’ll post an update soon on which stock I am picking for this plan.
  • Pay down more than our minimum dues on mortgage debt – One of our long term goals is to pay down our mortgage well before the current 25-year amortization schedule. We have been homeowners for a couple of years now and feel that paying down faster is better for us psychologically and want to work on putting more payments towards that goal in 2017. In 2015, we were able to pay an extra 21% easily. We will aim to pay an extra 25% in 2017 and hopefully grow that number over the coming years.

Have you set your goals for 2017 yet? Share them if you have. What are your thoughts on the goals discussed above. Be sure to leave a comment below.

< Goals

 

34 thoughts on “Goals for 2017

  1. JC says:

    Looks like some good goals for the coming year. We’re still working on finalizing some goals but they will be very similar to yalls. Pay down debt, start college savings and other income sources will have to do the heavy lifting for increasing our non work Income. It looks like 2017 will be another year of big changes for us and that’s just with the things we see coming up. Should be interesting. All the best in 2017.

    • Sounds about right, JC. Those are the big ones, arent they? Pay down debt, save and invest more. Im hoping I can achieve some growth in the passive income over the year..lets see if I can get there.

      Best wishes for 2017
      R2R

  2. Great goals! Congrats on the daughter!! We had a son in 2016! I wish I could convince you not to pay extra on your mortgage, but I understand the psychological preference. 🙂 Take care,

    Passive Income Dude

    • Haha I hear you. I keep going back and forth and theres a strong case to be made for not paying down the mortgage when the interest rates are close to 2%. But its better for us psychologically to pay it in the next 10-12 years instead of 25 years. So, we will slowly keep chipping away at it.

      R2R

    • Thanks DL. Im hoping to get our daughters nest egg going soon — that way things can start compounding over the next couple of decades. That should give her a nice leg up 🙂

      Best
      R2R

  3. First, belated congrats on the birth of your daughter. If you think the markets are unpredictable, just give her a few years! 🙂

    Your dividend goal may not be a lot in dollar terms, but the main thing is that the ball continues to roll forward. Who knows, your “cash heavy” position may turn out to be a stroke of genius.

    For what it’s worth, I have the same attitude about paying down the mortgage. It may not make sense when you crunch the numbers, but there is something to be said about peace of mind, especially when you have a family. Over the years we have from time to time to make a “principal only” payment on the anniversary date of our mortgage, and never once regretted it.

    Good luck in 2017!

    • Thanks DoD.
      The markets are completely bonkers these days. These currency wars are raging and things are getting battered all over. Will be interesting to see how things progress.

      About paying down the mortgage, Ive had a hard time convincing myself about paying more since our rates are close to 2%, but I think thinking in terms of time — the 25 years of amortization seems too long to be under debt. I would like to cut that down in half if that means saving and paying slightly more each month now.

      Thanks again for stopping by and the wishes. Wishing you the best for 2017 as well
      R2R

  4. I saw you sold off a lot of positions to stay in cash position. I’ve been thinking the same with my 401K also. But I’m going to wait until after February to do so. If the market go to 21,000 sure, but with so many uncertainty, I’ll just wait for a chance to get back in.

    2016 I’ve witness my 401K jumped almost $100K, I don’t like this big swing, but then again, I don’t touch the money until I’m retire, that’s why I’m still a little hesitate.

    $10K in passive income is massive, I’m sure with 2016 you got $9K, $10K would be a breeze. Best of luck meeting all of your goals.

    Cheers!

    • Thanks for stopping by Vivianne. Hope things are well…its been a while since I heard from you. Thats great your 401K jumped by almost 100K. Congrats on the progress and wishing you the best for 2017 and beyond.

      R2R

  5. Hi R2R,

    Good goals! I am also more in cash as I have built up my war chest during last year. This year I will go back to monthly contribution again based on undervalued stocks or like you reduce my mortgage obligations. My new mortgage starts now, so max 25 years left for me now 😉

    For the rest I am just waiting for next recession to purchase some longtime favorites on my watchlist if they come down, I.e sbux, nke, etc…

    Regards,
    FIP

    • Thats great you have a big war chest and ready for the next recession. That will give you nice leverage when the markets crash and the world will be your oyster to pick and choose and underbid on great investments.

      I hear you on the feeling about a new mortgage. Keep on chipping away.

      Best
      R2R

  6. I would love to read about your more personal goals as well. I truly believe that goals are more easy to achieve when they are part of a bigger picture.

    Have fun throughout the year with these ones, I’m sure you can crush them! 😉

    Cheers,

    Mike

  7. The two biggest goals that I have for 2017 are exercise 4x a week and to ratchet up my savings from 65% to 70% of my take home pay. I think it’s possible but it will definitely be a little bit of a sacrifice. So we’ll see how I do.

  8. This may have been addressed elsewhere, but have you been using LendingClub?
    Curious to what your other sources of passive income will be.

    Congrats on 2016’s body of work. Here’s to 2017

  9. Great list of goals. I like how your saving for your daughter to give to her. My sons 3 it’s shocking to see how much his resp is at already by maxing it out.

    My goal is 2k passive income this year. That would be great as I started buying stocks last yr. Paying off extra to your mortgage is great and feels great. We did it on our last house. This one we just switched to weekly payments. I like the higher dividends of stocks vs the 2.6 mortgage
    Anyways keep it up
    I’ll be back! Haha

    • Congrats on starting off your son’s RESP…it is great to see that account grow as you maxing it out, I bet. Gotta love those CESG grants too 🙂

      Best of luck with your $2K passive income goal…hope you will surpass it and keep growing. Thanks for stopping by and sharing

      R2R

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