9 hours ago
All excellent points. Not quite on point, but I'll just add also higher interest rates. I've always kept a lot more cash on the sidelines than any planner would recommend -- like 25 to 40 percent of my entire worth. I know it is less efficient, and I sometimes fret about how much more I would have gained in the run-up of the last few years if that had been invested. But on the other hand, I put a high premium on sleeping well at night and having the flexibility (dry powder!) that a lot of cash provides. But with the higher interest rates of the last couple / few years, this cash has gone from just sitting there to actually providing a meaningful amount of additional passive income. In Q4 2024, interest on case was 38 percent of my total passive portfolio income, with the other 62 percent being dividends.
My dividend income continues to rise, though more slowly as we're discussing, but my total income has increased a lot because of this.
My dividend income continues to rise, though more slowly as we're discussing, but my total income has increased a lot because of this.