Friday, October 25, 2019

Financial Independence For The Blind: First Update

At the beginning of October I posted my idea of creating an income stream that would build some income for the blind. You can read that post  here
cash, bank notes and coins, when investing I like to see cash flowing into my account coming from distributions and dividends
Cash Flow is King.

That post was made on 10th October. It took several days to have my new account checked and funded with just $50.

I began purchasing stock on Monday 21st October, 2019.

The first aim of the account is to build a portfolio worth $10,000.

I am not making this easy, I want to show anyone can do this using just a few dollars of spare change per month.

Some money will come from cash inputs but some must also come from cash flow within the portfolio itself.

My initial investments were in Mutual Funds.

So why Mutual Funds?

 
I  chose to go the mutual fund route first because they add instant diversification. Plus the two mutual funds I opted to buy units of pay a distribution every month.


My two mutual funds are MLPFX and PREMX.





MLPFX is a mutual fund which invests in things called Master Limited Partnerships, or MLP's. A MLP is a special company which owns things such as pipelines for oik or natural gas. They pay their owners a percentage of the profit from ordinary operations. This is in the form of a distribution, not technically a dividend. It currently pays about 5 cents per unit owned each month.

The PREMX mutual fund is T Rowe Price Emerging Markets fund. Again this pays about 5 cents per month in distributions and invests in emerging markets bonds.

Over the next year I should earn at least $3.20 from both Mutual Funds, I will re-invest some of these funds in the units themselves. I have just under 3 units of each investing $20 in the MLP mutual fund and $30 in the Emerging markets fund.

At the end of the first week I know have a portfolio worth $50.10 an initial profit of 0.20%

This initial profit is due to daily price fluctuations that the two mutual funds have gone through.

At this point it is nice to see price rises, but we don't want to see too large a price rise since we are re-investing the distributions and a lower price will actually serve us better as we will be able to purchase more units as time goes by.



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