Tuesday, June 5, 2012

Project $3 Million - May 2012 Results

PRIMARY OBJECTIVE:

Income replacement. The goal is to build an income stream that is ... reliable ... predictable ... and increasing. The income goal is $10,000 per month in retirement. A portfolio of $3 Million with a yield of 4% will accomplish that objective. Hence the title of this portfolio; Project $3 Million.

STRATEGY:

To contribute $500 per month to the portfolio, look to earn 8.25% annually, compounded over 40 years. The beginning value at the time of establishing these goals was $42,205.00.

This link shows the compounding effect:

http://www.planningtips.com/cgi-bin/savings.pl?amt=42205.00&dep=500&cmp=annually&int=8.25&yrs=40&Calculate.x=50&Calculate.y=12

Status:

To stay on schedule, 2012 year end total must be $74,355.59. ... As of May 31, the account balance is $74,183.05.

YEAR END PORTFOLIO VALUES:

2009 ... $42,205.42
2010 ... $54,949.87 ... up 30.2%
2011 ... $73,303.61 ... up 33.4%
2012 ... $74,183.05 ... (year to date)

MAY DIVIDENDS RECEIVED:

TAXABLE ACCOUNT: (Dividends Reinvested)

General Mills (GIS) ... $15.37 ... Bought 0.396 shares
Enterprise Products Partners (EPD) ... $36.84 ... Bought 0.747 units
Nucor Corp (NUE) ... $19.56 ... Bought 0.535 shares
Kinder Morgan Partners (KMP) ... $40.76 ... Bought 0.505 units
Magellan Midstream Partners (MMP) ... $32.63 ... Bought 0.467 units
Abbott Laboratories (ABT) ... $27.90 ... Bought 0.446 shares
Colgate-Palmolive (CL) .... $15.12 ... Bought 0.149 shares
=============================================
Total ... $188.18

Cash deposited in May ... $400.00

Symbol ... Shares ... Mkt Value ... Gain/Loss

ABT ..... 55.15 ..... $3,407.72 ... up 26.03% ... Abbott Laboratories
ADP ..... 37.744 ... $1,968.35 ... up 18.09% ... Automatic Data Processing
BP ........ 61.475 ... $2,241.38 ... dn <27.72%> ... BP plc
CL ....... 24.529 .... $2,411.20 ... up 24.00% ... Colgate-Palmolive
CVX .... 22.196 .... $2,182.09 ... up 26.88% ... Chevron Corp
DEO .... 29.082 .... $2,772.68 ... up 39.60% ... Diagio plc
EPD ..... 59.464 .... $2,899.46 ... up 27.98% ... Enterprise Products Partners
FTR ..... 19.095 .... $71.42 ........ (shares received in spinoff from VZ) ... Frontier Communications
GIS ...... 50.679 .... $1,939.99 ... up 11.57% ... General Mills, Inc
JNJ ...... 42.19 ...... $2,633.92 ... up 0.69% ... Johnson & Johnson
KMB ... 25.745 .... $2,042.87 ... up 18.91% ... Kimberly-Clark Corp
KMP ... 34.47 ...... $2,700.04 ... up 8.14% ... Kinder Morgan Partners
KO ...... 53.399 .... $3,990.51 ... up 58.3% ... The Coca-Cola Company
LMT .... 33.944 .... $2,810.56 ... up 3.54% ... Lockheed Martin Corp
MMP ... 39.313 ... $2,705.13 .... up 28.91% ... Magellan Midstream Partners
MCD .... 23.359 ... $2,086.89 ... up 25.02% ... McDonald's Corp
MO .... 100.556 .... $3,236.90 ... up 56.92% ... Altria Group Inc
NUE .... 54.129 .... $1,935.65 ... dn <11.80%> ... Nucor Corp
PEP ..... 32.496 .... $2,204.85 ... up 9.84% ... Pepsico Inc
PM ...... 31.951 .... $2,700.18 ... up 17.64% ... Phillip Morris International, Inc
SO ...... 43.887 ..... $2,014.85 ... up 24.70% ... Southern Company
SYY .... 69.722 .... $1,945.94 ... dn <9.41%> ... Sysco Corp
Cash ..................... $1,140.70
==============================================
Account Value: ... $54,043.29

Announced Dividend Increases ... None
Announced Dividend Decreases ... None

ROTH IRA: (Dividends Reinvested)

Verizon Communications (VZ) ... $55.70 ... Bought 1.371 shares
Procter & Gamble Co (PG) ... $18.86 ... Bought 0.293 shares
Realty Income Corp (O) ..... $11.36 ... Bought 0.288 shares
Health Care REIT Inc (HCN) ... $29.99 ... Bought 0.551 shares
==================================================
Total ... $115.91

Symbol ... Shares ... Mkt Value ... Gain/Loss

D ......... 67.773 .... $3,528.26  ... up 11.37% .... Dominion Resources Inc
HCN ... 41.084 .... $2,278.93 .... dn <0.05%> .. Health Care REIT Inc
O ......... 78.186 .... $2,996.87 ... up 6.87% ....... Realty Income Corp
PG ....... 33.853 .... $2108.70 .... dn <1.00%> .. Procter & Gamble Co
VZ ...... 112.761 ... $4,695.37 ... up 11.63% ..... Verizon Communications
Cash ..................... $34.75
=================================================
Account Value ... $15,642.88

Announced Dividend Increases ... None
Announced Dividend Increases ... None

Total Dividends for May ... $304.09 ... This is a monthly record.

May 2009 ... $41.04
May 2010 ... $127.62
May 2011 ... $245.41
May 2012 ... $304.09

Thrift Savings Plan (TSP) - Federal version of the 401K

There is no company match in this account. Only 5% of income is being contributed. Index Funds are the only option other than Life Cycle Funds.

Fund ..... Shares ..... Value ..... Percentage of Portfolio

C Fund (S&P 500) .......... 98.2608 ... $1,566.37 ... 35.56%
F Fund (Fixed Income) .... 14.4666 ... $227.99 ...... 5.18%
I Fund (International) ....... 71.3682 ... $1,188.37 ... 26.99%
S Fund (Small Cap) ......... 67.5612 ... $1,420.80 ... 32.27%
============================================
Account Value ... $4,403.53 ..... (I missed the 5/31 close. The above numbers include 6/1)

Contribution Allocations:

C Fund ... 10%
F Fund ... 10%
I Fund ... 45%
S Fund ... 35%