Monday, February 10, 2014

Dividend Epiphany is born

Hello everyone.  Welcome to Dividend Epiphany.  I 'm a soon to be 35 year old civil engineer living in the San Francisco Bay Area, one of the most expensive places to live in the United States.

I wanted to document my journey to financial independence through dividend investing.  I'm not sure if anybody will follow but I feel this will keep me accountable with my future goals.

I have three goals from Dividend Investing:

1)  Retire earlier than expected.  My plan is 58.  This is the break even mark where I'll make the same retired (from my pension) or working.

2)  Be able to pay most if not all of my future kid(s)'s college education.  No kids yet, but plan to start having some in the next year or two or three.  I'd like to thank DL for opening my eyes to that possibility and my reason for the name of my blog.  I figured this might be a better avenue than a 529.  I can also grab my Roth IRA contribution (without being taxed) if my taxable account falls short.

3)  Be able to pass this on to my wife and especially my future kid(s) so they won't have to stress about money and maybe future generations can grow it from what I started.

Why now?

All I did was save.  It was the thing my parents instilled in my sister and I.  It's a valuable trait to have especially living in the San Francisco Bay Area.  Things are just so expensive.  I started working at 21 after college.  I saved and saved and put pretty much put all my savings into my current house in 2005.  Let's say I had to win a lottery just to be able to purchase this house in a new community.  During the housing crash, I could buy almost 2.5 of the same house.  Yup definitely no bueno, but I made it work.  Currently, I'd say 60% of my current take home pay goes into the mortgage, taxes, insurance, which leave the other 40% on bills, food, gas, etc.  I saved very little from my paycheck or had to go into my little savings account.  In late 2012, I got married and my paycheck had to cover two people now so we lived pretty much paycheck to paycheck until now.  My wife got a job.  Woohoo.  I thought about buying stuff but nope I want to save.  The plan is to save her entire paycheck.   We plan to save a small percentage towards a savings fund, maxing out both of our Roth IRA (Could also be used as an emergency fund), and the rest towards a taxable account.

My regret is not doing this sooner.  It's something I'll be teach my kids about so they can be financially independent in their 40s or even earlier.

This blog will follow both Roth Accounts and the taxable account.  My wife will be using a Vanguard target fund for her Roth.  We will put the same amount in both Roth accounts so it will be interesting to see if I manage my Roth IRA better than Vanguard.

I will not be able to regularly contribute to to the taxable account, which I will lovingly call The Fund (I know catchy right?), until April at the earliest so we can fund $3k for my wife's 2013 Roth IRA contribution.  I have my $3k ready to use starting tomorrow. Stay Tuned.   I wanted to max out our contributions for both 2013 Roth's but $3k for both was all we could afford.  Starting in 2014 and future years they will be maxed.


  1. Hey Richie,

    Congratulations on getting started and I look forward to following your progress! I'm glad you started this blog, I've found that writing about investing helps me to really sort out my thoughts and research stocks more in depth. I have many articles half written of companies that I thought I was interested in, but halfway through the writing I realize they have glaring issues and should be avoided. (I'm looking at you mobile price war).

    Best Wishes.

  2. Thanks for stopping Dividendsaur. I commented on your blog earlier thinking about writing a blog to follow my own journey and here we are. Thanks for the small push. I look forward to following your journey as well. It seems like everyone has already been established so I'm glad I found you because we are just starting out now.

    I've been thinking about the mobile companies as well of which one to add eventually. (maybe i'll add T or VOD or VZ). I'm sure i'll add T and maybe VZ. They may not have much dividend growth, but they have a good yield especially T which is approaching 6%. You can't really go wrong just like the three main soda companies KO, PEP, DPS.

    1. Richie,

      Those mobile companies have an excellent yield but right now I am holding back do to the massive price wars that are going on. These price wars always destroy a-lot of capital as the competition usually brings down profits for all. The stock prices are extremely attractive for a great yield but I just don't like the risk at this time. I do however love the soda companies right now. I am glad we can do this together too, it's never fun to be the new guy all by yourself. Take care sir!

  3. Congrats on getting started w/ DGI. I'm a civil engineer from schooling but I work in the O&G industry now. It'll be great to follow along on another person's journey. A little extra motivation never hurt!

    1. Sweet another civil engineer. Nerd power. haha. Thanks for stopping by. I'm excited about being able to start putting away for my future. I figure this blog will keep me accountable with my goals and getting support and motivation from the fellow blogging community is a huge plus. I follow your blog and it's great to see what my future can become if I stick with DGI.

  4. Congrats on getting started Richie.

    I started my own blog just a few weeks after this post. Looking at your portfolio, you have a great foundation of dividend growth stocks. Can't go wrong picking names from David Fish's CCC list. I always download the newest list at the end of each month and use it to find new ideas. I look forward to following you on your journey.

    Best wishes,

    Mr. SFZ

    1. Hey Mr SFZ,

      Thanks for stopping by. Ya, I love that list. I'm pretty open to anything since I don't own many companies and David Fish's CCC list is good place to start.

      I look forward to following yours as well.