In our stocks/retirement thread we discussed starting a small ROTH investment. One poster suggested a long term plan to get finances in order before starting to invest. I respectfully disagree. I think there in nothing wrong with making small investments in the market as you get your finances in order.

Reminder: I am a proponent of investing in only Dividend Growth Stocks.

Along these lines I wanted to get my adult daughter started in the market. So we have set up an actual Dividend Growth Roth IRA account, and I'll share it's progress with you. We are depositing $100 a month.

We just had our first purchase in August. We bought 3 shares of a BDC (Business Development Company) called Main Street Capital. Symbol MAIN. The primary reason I chose MAIN is because it pays a monthly dividend (which is unusual) and I wanted the portfolio to show some dividend growth from compounding immediately. (although the first dividend won't show up till late November).

The spreadsheet shows 2 figures: One is total dividends per year, the other is 75% of those dividends. I suggest you withdraw only 75% upon retirement so that your income will continue to grow.

After one month the yearly income is $5.40 and the 75% withdrawal figure is $4.05 a year. So.....enough for 1 person to go to McDonald's once a year and grab a couple items off the value menu. With no compounding, the expected yearly total 30 years from now is $1,458 (at $100 a month).

I'll share the progress of this account. We'll be buying our September shares this week.

Notice I do not discuss the total $ value of the portfolio. What's important is the income stream it produces.