Robbie Thomas

2021 Q4 Finance / Investing Talk

Posted: 31 December 2021 by Robbie

VWELX Gains and My Mistake

Both Vanguard Wellington (VWELX) and Vanguard Dividend Growth (VDIGX) spit out short-term Gains and long-term Gains. I was able to get a whopping $340 from each of those two, not including the dividends. I was filled with the shock of joy. Not stopping to notice that VWELX went down from $52.18 on 28 Dec 2021 to $48.60 the next day. Going down about $3.50. What I didn’t know was Vanguard issues a memo detailing all their funds and ETFs on the final dividend and also what short-term and long-term gains (if any). They usually issue this on the 9th of December.

With VWELX, they made the declaration date at 28 Dec 2021. Next, the ex-dividend date at 29 Dec 2021, and the payment at 30 Dec 2021. My joy went down the tubes when I saw on the payment date that it dropped $3.50. I own 82 shares of VWELX, let’s do the math: 82*3.50=287. Fuck me! For 9 Dec 2022, I better take a look at that Vanguard report and keep an eye on which funds and ETFs I have, and make the right move(s) at the right time. I would probably shave the said Mutual Funds to $3000. So, say I have $4000 in VWELX, I’ll take a thousand out.

And for my mistake, here’s for me:

But, this isn’t full bad news. I got the dividends on 30th of December and I had the option of automatically reinvesting into the fund. So, I bought them at $48 opposed to $52. I’m confident that this will go past $52 a share, sooner or later (the latter is likely). According to my research, the same scenario happened on 28 Dec 2020 and the next day. On 28 Dec 2020, the fund was at $46.98. The next day, 29 Dec 2020, it went down to $44.18, a difference of $2.80.

Dividends

In 2019, I made $90 in dividends. In 2020, I made $223 in dividends. When you divide 223 to 90, you get 2.48. So I made a guess projection of making $553 in dividends for 2021. Not including the short-term and long-term gains from the previous paragraphs (and including VCIT), I made $658. Accoridng to my math, I got to 2.95 as the multiple. 658/223=2.95. According to my next projection, I should get to $1,934 at the end of 2022, not including short-term and long-term gains. However, I’m thinking I’ll come up a little short. This year, I invested aggressively. I might not make the same aggressive push due to me being near 70% of my money in the stock market. I’m 39 going on to 40. I got by my own “110” rule:

110 – age = percentage of $$$ in stock market.

I might change my ways down the road and might push more than 70%. I also changed my portfolio to go 75% stocks / 25% bonds as of now. I’m stopping with buying AGG and AOM for a while. AGG and AOM are primarily in Treasury Bonds. I would not buy Treasury Bonds directly at this time or maybe even a few years from now, I’d rather stay with AGG and AOM and allow the smarter folks to do the work while my ignorant self collects the dividends. AGG hasn’t paid a dividend past $0.20 in 2021. When I see AGG get past that threshold, perhaps I’ll come back. I’m still going to buy VCIT which is mainly business/corporate bonds. I also like the dividend in that one. Perhaps I should use the 5% and apply it to VCIT? Hmm…

VCIT and AGG are monthly dividends, just like SPHD which is mainly in consumer goods. I talked about inflation in a previous article and how I thought it will get worse. I was right, it has gone to 6.8% in December. Will it continue and drag on like it did in most of the 70s? Perhaps! I’m adding more to the Consumer Goods category in case I’m correct. Also, to be a shithead, I’m investing in Altria (MO). I try my best not to directly invest in companies that screw with the environment. But I also invest in real estate, you need trees to cut, for wood for the structures, and to clear the forests for a new condo. I guess I’m not so good after all…

Observations

This inflation is also going to be a bitch due to me possibly moving. I’m more than likely not going to buy a house or condo in 2022. If I do, it’ll probably be in the latter part of this year, but I doubt that. However, in my area in Macomb County, MI, the rents are jumping up. I’m pretty confident that I can keep up with the rent for my next venture, provided that I do move. Covid-19 has made me a minimalist in some ways. I just got rid of a few old laptops. I have sold a few CDs and given a few as Xmas gifts. I’m in the process of selling or donating my old Playstation and Playstation 2 games, along with the systems too. I got rid of papers and stuff I don’t need anymore. Hell, I got rid of a couple of portrait photos.

I’m not going all-in on minimalism, I’m trying to get rid of shit I don’t need. I got to say, I feel a little better getting rid of this shit. Hopefully, no fluke happens and suddenly old Playstation games are worth a shit load of money. Next, I’ll be on this blog with the Bill Duke meme.

Also, yesterday and today, I tried to check my credit rating on CreditKarma, but the site has been down for all that time. I tried to check on Vanguard and they are experiencing technical difficulties as well. Perhaps both of them are doing maintenance on their respective sites? It didn’t mention that on either of them. (Later note: Express VPN doesn’t allow me to use those sites while it’s on.)

I’m going to end the post (the last post of this year) in a pessimistic nature of sorts. It just seems to me that we are on our way to more dystopian times. The rich are getting richer, this includes the “kinda-rich” like me. While some of us are struggling like a motherfucker to get on by. It seems that the homeless situation in cities like Los Angeles, San Francisco, and Seattle is getting worse by the day. And hell, I could’ve been there myself, I almost ran away from town to Las Vegas in April 2019.

I know for a fact that I’m going to be working quite a lot of hours this year to not only maintain and pay my bills but also to keep investing as well. It’s going to be a bitch to keep on keeping on. I’m going to be tired, I’m going to be angry and it’s just the way it is. You can’t get by with a minimum-wage fast-food job at 40 hours a week these days. Hell nah… I see long lines at Mcdonald’s.

I just hope that I get some good dividends or get a few investments that go up big time in the next few years. That would mean less work and more time on my creativity, perhaps more WishesNetwork EAS Scenarios. But when it comes to 2022, I’ll be working my ass off and doing my best to keep on keeping on. I probably won’t be buying too much shit, just paying bills, essentials, required items, some concerts here and there (mainly at the Diesel Concert Lounge). Shit is going to get seriously ridiculous, and it’s going to be a pain in the ass for a guy like me with ADHD, OCD, and a god-damn learning disability.

Hopefully, I don’t pull a Kim Wexler, or worse, cause a multiple-car accident that I’m at fault for. Here you go:

RIP Betty White.

Happy New Year!

WARNING: Do not take this advice and put all your eggs in the basket on a single stock or fund that I mentioned. When it comes to investing, I’m Single-A ball at best (short season A-ball). Please do your research and due diligence. I don’t want an e-mail or comment with: “Hey dipshit! I put all my money in a stock you mentioned in a blog, and the CEO got caught naked with a 7-year-old boy in Thailand.”