Michael Jordan, Joe Montana, and Tiger Woods were good for a reason, with intentions. It is the same with those who enter the field of investment, have a goal in your career and set your mind to achieve that goal. Before you do your first job in the investment world you should ask yourself, what do you expect to achieve?
Everyone loves to help the needy, but there is space and time and nothing in the world of stock investing.
Many investors simply want a good return on their investment. But what is considered to be a good reward? Is it enough to retire? Based on what they want in retirement the question is how long is retirement? In two years your investment plan will be significantly different from those of retirees in 15 years.
As an example, let me use you as a regular investor. 40 years with decent income and investment potential of $ 300 per month. We will have to change my circumstances a little bit and think I have nothing in my portfolio but I want a lasting dream - I want $ 1 million to retire. The question is, if I have $ 300 available now, is my goal something I can beat?
Assuming I can match - if not - the stock index working at 10.4% per annum, my total value would be about $ 380,000 by the time I reached retirement at age 65.
Damn - I missed my $ 1,000,000 goal!
To reach that level - I need to invest more than $ 300 a month. (To achieve that I will need a refund of at least 17 - 18% pa.
That's right - the reference wallet won't do me any good, especially since the history of these shw won't be much better than the 10.5% mark!)
Okay - let's look at another situation for me?
Let’s imagine that I’ve actually been working away from my investments and wallets for a while (I should have listened to my dad !!) and I have a touch of more than $ 100,000 stored away.
Can I beat the million I was targeted for with that money as the first sum of money?
However, if I am willing to use the index funds as my preferred investment method, the answer is Yes!
As long as there are no major market volatility (ignoring the general flexibility you will find in extra investment time) I should have more than $ 1,000,000 marks when I retire - and I will not have to add a cent more. and the money I have saved.
But what makes this possible for me to reach my goal? The fact that I have a target.
Goals - target - target, all help us to focus on reaching the end of the race with the result we want.
Principles to help you focus on your investment are what help you design your investment plan.
Do you need to be aggressive and look for a great return or can you just save the money you have saved and get a decent return to achieve your goal?
Put yourself (literally) in it, keep it in mind at all times.
Be modest and focused.
You must be logged in to post a comment.