Favorable Investment Objectives
Windowofworld.com – Michael Jordan, Joe Montana, and Tiger Woods are great for a reason, they have a purpose. The same is true for those who enter the investment field, have goals in your career and set your mind to achieve those goals. Before you even make your first transaction in the stock investment world, you have to ask yourself, what do you want to achieve?
Everyone likes to do charity, but it has a place and time and nothing is found in the world of stock investment.
Most investors only want a good return on investment. But what counts as a good return? Enough for retirement? If based on what they want for retirement, the question becomes how long until retirement age? If in two years your investment strategy will be much different than for those who retire in 15 years.
For example, let’s use me as an ordinary investor. 40 years old with a decent income and the ability to invest $ 300 per month. We have to change my circumstances a little and imagine I don’t have anything in my portfolio, but I want the ultimate dream – I want $ 1 million to retire. The question is, if I have $ 300 available right now, is my target something that I can deal with?
Assuming that I can match – if not better – the stock index return that runs at 10.4% per year, my amount will be worth around $ 380,000 when I retire at age 65.
Damn – missed my $ 1,000,000 target!
To reach that level – I need to invest more than $ 300 per month. (To find out that I need a return of at least 17-18% per year.
Okay – index funds won’t do it for me, especially because the history of this shws won’t be much better than the 10.5% mark!)
Okay – let’s look at another scenario for me, okay?
Let’s imagine that I’ve actually been working away on my investment and funds for a while (definitely listening to my dad !!) and I have more than $ 100,000 in touch saved.
Can I reach the million target with that number as a lump sum starter?
Well, if I am determined to use index funds as my preferred investment vehicle, the answer is Yes!
As long as there is no great and steady market turmoil (ignoring the standard fluctuations you will get during a long investment period) I should have more than $ 1,000,000 by the time I retire – and I don’t need to add a cent more to my savings too.
But what made this possible for me to reach my target? The fact that I HAVE a target.
Goals – goals – they all help us to focus on reaching the end of the race with the results we want.
The goal to help you focus on your investment is what helps you design your investment plan.
Do you need to be aggressive and look for large returns or can you protect your savings and get simpler returns to achieve your goals?
Determine yourself (realistic) to him, always remember that.
Be simple and focus.