When I left my job in early 2012, I made it a goal to achieve a $200,000 annual passive income figure by June 2015. At the time, I had around $80,000 in annual passive income and figured why not shoot for $200,000 in order to never have to go back to work again.
In those days, 4% interest rates for dividends and interest income were more readily available. Thus, $200,000 a year in income would theoretically require only about $5,000,000 in invested capital. Since 2012, however, interest rates have continued to decline along with my risk tolerance for investing in more risky assets. As a result, when June 2015 came around, I was $25,000 short.
As 2017 approaches, I’ve got conviction that after four and a half years, I will finally be able to achieve my passive income goal. In this article, I write about the various steps I’ve taken.