How To Increase Passive Income A Lot

30 Responses

  1. WOW! You went from 22,000 to 125,000 in one year? That is awesome investing and dedication to saving mate. I have done okay but no where close to what you achieved. I like your yield too. Most of the dividend investors have yields around 3-4%. Mine is closer to 2%. Not all mutual funds have high MER. Index funds tend to be cheap and perform really well. Vanguard Canada has a bunch of well diversified ETFs which are cheap. All my investments are in Vanguard index funds. Looks like your investments where in actively managed funds. AFAIK, Markets going up or down was definitely a coin toss. Your growth in one year is phenomenal mate. Looking forward to your 2018 performance.
    dividendgeek recently posted…Reasons you should invest internationallyMy Profile

    • Hey geek thanks alot! Vanguard seem like good etfs. My 2018 gains wont be close to this years. With the wife on mat leave our income is drastically slashed. We also wont be refinancing, but on the plus side all this forward income will be reinvested. Propeling the gains.

      Always appreciate the comments
      Cheers Mate!

  2. JC says:

    That’s fantastic PCI! A $12k increase in your passive income in just 1 year is huge. I’m considering a refi for our own house although I don’t know if we’ll cash out any of the equity. It’ll be tempting but we don’t have nearly the amount of equity as y’all did to make it worthwhile unless we get a fairly generous appraisal. Although maybe it’ll be tempting depending on the interest rate. One of my goals for this year is to start researching a refi. I think it’d be pretty simple and straightforward except my work history was interrupted with the slowdown in the oil field and I haven’t been back to work for a full 12 months yet. So I’m thinking mid year might be a good time to start looking into it. Either way though y’all did a fantastic job in 2017.
    JC recently posted…Right Where We Left Off | Weekly Roundup – January 13, 2018My Profile

    • Hey jc thanks alot! I would say start researching aNd calling around. Start with one company since you dont want to many dings on your credit score. The lack of consistency with work may make it harder though. Its worth a shot and great if you can atleast lower your interest rate.
      Wish you all the best in 2018!
      Cheers

  3. Good choice getting out of the mutual funds. The fees and costs are insane and eat away at any good gains.

  4. Congratulations on a great financial year in 2017! That is some incredible progress on your passive income. You are right that the online financial community is a great source of ideas and support. I also started my blog last year, and I agree with you that it was a good decision. Best of luck in 2018!

  5. Leo T. Ly says:

    Thanks for the shoutout Rob.

    Great job of getting the loan and direct it to your passive investments. The interest cost for the private investment loan and the solar panel can be used to offset the income that you earned at tax time when you file your taxes (in case you haven’t talked to your accountant yet).

    Man, I would love to find out more about the 12% private investment. If it’s stable and the risk is reasonable, I want in lol.

    • Hey Leo np, thank you.

      First off i wanna say sorry i accidently hit remove love when reading your comment and got rid of your backlink. My bad. Dunno how to get it back.

      As for taxes we are goinf to hire a accountant this year probably would be worth it. The investment is definitely nice. Ill talk to them.
      Cheers

  6. Pellrider says:

    You were able to get $150,000 on equity! Good for you. I don’t know much about refinancing. The current rate is locked at 2.5% . I just started paying more to finish off the mortgage faster. Great achievement in increasing the sources of income. Good luck in 2018!

  7. Congrats on a very successful year PCI and on that massive increase in dividend income. I completely agree that it’s important to have multiple sources of passive income. You never know when one income stream will dry up.
    Dividend Portfolio recently posted…Inspirational Quote of the Month – January 2018My Profile

  8. Nice work. With rates super low still, if you were able to get a lower interest rate and take money out to invest you did great. That mortgage payment will stay the same while your investments will continue to grow. That’s how you leverage wisely. Good luck and keep up the good work.

  9. Nice work. Thank you for sharing. I share all points you mentioned and I am also a huge fan of multiple sources of income. Currently we have passive income from four sources and looking for others. I fully agree to NO mutual funds. We also refinanced our rental property and put these money to work for as through private mortgage. I am wondering myself but within three years of investing we expect receiving 18,000 in passive income in 2018. Have a great 2018!

    • Rob says:

      Hey allincome
      Sounds like you are doing fantastic. Always great hearing stories of people winning. You got 4 different sources of passive income. You are winning!
      I’ll be coming by your site to check out your story.
      Cheers
      Rob

  10. Mr. Robot says:

    That is one very impressive year. I wish were able to refinance our house but the penalties are making that impossible here.

    Congratulations on crushing 2017 and I’m looking forward to following you along in 2018!

  11. Hi Rob!

    What a great story! That’s awesome that you were able to pull this off within a year. I love the idea of passive income as well.

    My fiance and I are trying to find ways to gain from both growth and passive returns. We recently bought a rental property last year and so far it’s been pretty good. From time to time, there are a bit of hiccups so it’s not 100% passive where no work is required. As for you, the fact you get $500 per month (12% return) where you do ABSOLUTELY nothing is fantastic!

    P.S. I didn’t know about the solar panels….. but that’s pretty cool!
    fin$avvypanda @ finsavvypanda.com recently posted…The Epic Tool You Need To Retire Early Like a King!My Profile

    • Rob says:

      Hey Panda

      Thanks alot for the comment. Yeah the private investment has been great so far! The solar panels are nice but i need to invent something to get the snow off them, so they produce in the winter!

      Thats awesome about the rental, my goal is to have one by 2021 but would hope real estate values drop a little by then.

      I got a buddy with a couple rentals, there is some work to them but he has done very well with them.

      All the best
      Cheers
      Rob

  12. Terry Pratt says:

    Real estate investment typically entails capturing the wealth of others unable to retain their own wealth.

    i.e. you’re not really creating wealth as much as you are redistributing it to yourself.

  13. Tracy Ma says:

    Wow, nice job!! Great stuff about the solar panel investment. That’s an interesting investment!

    • Rob says:

      Hey Tracy

      Welcome, always love seeing new faces to the site.

      Thanks, sucks they are always covered by snow but will be great come spring
      Cheers

  14. Hey Rob. I just saw this post – sorry for the late comment. Congrats on some excellent financial moves. You benefited from a terrific rate on the refinance, and a good time to buy stocks on the dip. And it doesn’t hurt to invest at 12 percent per year!

    I did a recent post on HELOC arbitrage, as I was contemplating something similar (pulling money from my home equity and putting it to better, more profitable, use). But for me the numbers didn’t really work because my rate is much higher.

    You are motivating me to check out solar panels. I live in hurricane alley, so it’s a bit trickier here. But lots of my neighbors are enjoying free electricity, and it’s time I joined them!

    I think these moves will pay off handsomely for you.
    Dividend FIREman recently posted…The Making of a Cash FIREhose – Rental Home PortfolioMy Profile

    • Rob says:

      Hey fireman.

      First off thanks, it definitely seemed to work out well. Now id like to point out I refinanced vs a heloc. A heloc would of been 5% and would of changed the whole situation…

      the 12% rate of return is great no question about that!

      Solar is fantastic set it and forget it. Hurricane alley maybe kinda risky though as the wind may catch under the panels. Of course they are fastened good just never faced hurricane winds!

      All the best man
      Cheers

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