Sunday, 8 November 2015

ERE21-InvestingforRetirement2


Investing for Retirement part 2 is the continuation of the ambition to invest for the retirement already mentioned in earlier post on investments but it all starts with how to calculate Net Worth. This is also the last post in the series of the advice from Early Retirement Extreme website. Although neither Early in my case, Extreme or even Retirement for that matter, it was the site that kick-started me sometime in 2009, 2010.

I will try to force myself to focus more on managing my investments. It is so paralysingly boring but I know it has to be done.

The first I did was to go through the list of blogs and websites that I read. Not all are paralysingly boring but then most of them are not about investments.
So I started a new list with blogs and websites that is actually about investments. About long-term, safe, dividend giving, interest providing, security establishing investments. Money people I, if not trust, at least can stand. It is not a very long list. But still, all are paralysingly boring.

My investment targets are the following.
- Make about 30 years x an annual budget = sum of money (almost check) and hang on to it until I am at least 60 years old (this is the current task)
- Live healthily until I am 90 years old (family average; in progress)
- Die without money (and have no children: check)

My investment principles are the following:
- Avoid the Euro zone financially (The reason for this is a very long story with lots of unique personal reasons and it is not a suggestion for everybody)
- Smallest portion of assets are in stocks. They must all be dividend paying, all must be in large companies, long established, with serious products, serious leaders etc. No start-ups, no bad (personal opinion) products and not run by somebody commonly known to be a fool (it eliminates more companies than you can imagine, as when it comes to financial matters, I have a very generous application of the term "fool".)
- Stocks are bought to keep forever and on one market only. The one I follow and understand. I do not chase individual companies around the world.
- Cash is king but and I keep a hopeful eye on interests.
- The rest is put in shares of investment funds that are not run by fools, or good investor's bad owners as fools, preferably in a combination of funds with varied profiles, reflecting all my different aspects.

I have no idea what I am doing but I do the best I can and knowing that some do not even do that, there is nothing else I can do. But I will task myself to try to read more of the paralysingly boring investment information.
My aim, possibly my vision, although not as certain as a plan and not even in the region of a promise - but I will try to focus more on money, and how to make them grow.

2 comments:

  1. The key to good investment is diversification, do not have your eggs all in one basket. You seem to have got that straight. The second is to go for quality stocks but to be aware that even these can come a cropper, take for instance GEC in the UK which was always a solid, dependable stock and then in the 1990s it all went horribly wrong, so do not take your eye off the ball and all portfolios need to be managed properly (you can of course do this yourself as you are doing). The third is to take a long term view. Finally read a reliable investment journal. In the UK the Investors Chronicle is well respected and a good way of keeping abreast with investments and good strategies.

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