For the last month of 2024 the DOW lost 2,238 points (-5%). For the year, the index is up 4,829 points (+12.80%). Interest and dividend income was $11,042 for the month. Withdrawals for living expenses came to $821. A $27,765 loss in market value was the largest monthly decrease during the past 12 months. This basically wiped-out half of my gains for the year. I haven’t had a one-month loss that big since September 2022. My total market value gain for the year was $27,001. Total dividends and interest were $38,745.
Much of this was unrealized gains and a large portion of the dividends were reinvested, so it’s not like I had extra money available to spend. I ended up withdrawing $14,765 over the year to pay for living expenses. The net result was positive overall. Subtract the beginning balance from the ending balance and you get +$55,705. Last year the net gain was +$58,000. 2022 was a very bad year with -$89,827, which makes my 3-year gain only +$23,878. If it wasn’t for interest and dividends, the numbers would be much worse. Reinvesting dividends is still the best way to grow a retirement account. I never seem to pick the right stocks at the right time. My more active brokerage account proves this when compared to the buy and hold strategy in 401k retirement account.
My prediction for 2025 is that the market roller coaster will continue to react to Trump’s often inaccurate statements as if they were actually truth. He has a second chance to “Make America Great Again”. Hopefully we won’t have too many unexpected world events to throw him off his game. I believe his focus on America is a good path. Unfortunately, there is still imbalance in the economy and trouble with our healthcare system. Trying to fix these large issues often creates unforeseen problems that end up hurting the people who can least afford it. It might be too early to think about the next election, but I hope a competent leader starts to emerge who isn’t a puppet for the super-rich corporate elites who basically run this country now.