Am I on track to reach my goal? - Page 3
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Thread: Am I on track to reach my goal?

  1. #21
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    The main reason is Financial Independence.


  2. #22
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    Interesting thread, I have basically the same goal as you but I'm 27, make less money and I'm giving myself 15-20 years to do it.

    I would say investing 70/30 stocks/bonds on a 9-year period is optimistic. Markets have had bad 9 year periods before, for example someone investing in 2000 and wanting to reach a certain goal in 2009. If reaching your goal on time is very important to you then you might miss the mark by relying so heavily on market performance. Don't let the great performance of the last 3 years fool you into thinking things will be like this forever. Maybe 2015 will be a total collapse of the economy, who knows; maybe 2016 will, maybe 2023 (which would be disastrous to your objective). I would suggest a more "balanced" approach, 50/50 or maybe 60/40. If however that million is just a benchmark and you plan on keeping most of that money invested after that, then your more aggressive approach may make sense, just keep in mind the markets won't necessarily do what you want when you want.

  3. #23
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    Quote Originally Posted by Michel View Post
    If however that million is just a benchmark and you plan on keeping most of that money invested after that, then your more aggressive approach may make sense, just keep in mind the markets won't necessarily do what you want when you want.
    Potentially a million is a benchmark because you could live reasonably well off the dividend and/or distribution from that. I'm not sure though...just guessing...

    At 3% dividend or distribution yield, that's $30k per year or $2,500 per month. If you have no debt, that's a decent income in a low-tax rate. Some of that income could be used/earned tax-free as well, (thanks TFSA

    +1 Michel - re: "Just keep in mind the markets won't necessarily do what you want when you want."

    I think for this reason, because no investor can predict their investment returns, living off the income earned from your portfolio is a more conservative strategy. The problem is, you need a very good chunk of the capital to do so.

    On that note, it's certainly worth saving for. I'm sure a few CMFers are living off the dividends and/or distributions churned out by their portfolios, and are living quite comfortably because of it, not caring what the markets do or don't do. I'd like to be there some day. That's really FI. Your money is making money so you don't have to work.

    Only time will tell if I'm getting there.

    Michel and Scorpion_ca, you guys are young and thinking about this in your mid-20s. If you continue with the same mindset and focus, you'll "be there" in another 20 years which will be FAR AHEAD of most in your cohort.
    Last edited by My Own Advisor; 2015-01-02 at 10:05 AM.
    Hidden Content - Saving and investing my way to a million dollar portfolio.

  4. #24
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    It's important to reach my goal but I would be okay if I don't reach there on time. I don't have any plan to retire once I reach my goal. As I mentioned previously, it will give me financial freedom and I will be able to do what I like to do.

    I am not only depending in investment income but also in saving more to reach my goal. I read couple of books written by William J. Bernstein and he mentioned that young people should pray everyday that market should go down and I do the same. I didn't like that market has gained last three years as I had to pay more. I am hoping that market should go down in 2015 and onward that I could buy more.
    Last edited by scorpion_ca; 2015-01-02 at 04:44 PM.

  5. #25
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    Quote Originally Posted by scorpion_ca View Post
    I read couple of books written by William J. Bernstein and he mentioned that young people should pray everyday that market should go down and I do the same. I didn't like that market has gained last three years as I had to pay more. I am hoping that market should go down in 2015 and onward that I could buy more.
    Amen! I dearly hope markets will crash as badly as possible this year, everything is terribly overpriced.

  6. #26
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    Quote Originally Posted by scorpion_ca View Post
    I am hoping that market should go down in 2015 and onward that I could buy more.
    As a young investor, this is a great attitude to have
    Hidden Content - Saving and investing my way to a million dollar portfolio.

  7. #27
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    Quote Originally Posted by GoldStone View Post
    What is the significance of having $1M at 40? Would you be disappointed if you have $800K at 40 and $1M at 42? Why?

    The goal sounds arbitrarily aggressive to me. It may be counterproductive, because it may push you to take unnecessary risk.

    You may want to review Larry Swedroe's guide to asset allocation:

    http://www.cbsnews.com/news/asset-al...ould-you-take/
    http://www.cbsnews.com/news/asset-al...isk-tolerance/
    http://www.cbsnews.com/news/asset-al...k-do-you-need/
    http://www.cbsnews.com/news/asset-al...licting-goals/

    According to Swedroe, asset allocation decisions should be based on 3 factors:

    ability to take risk
    willingness to take risk
    need to take risk

    Come up with a solid plan that matches your ability, willingness and need to take risk.

    Whether your reach $1M at 40, 42 or 45 depends on the market returns. They are out of your control.
    I just got to this thread. Thanks for posting these links. To me this is very good advice.

  8. #28
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    If you earn $125 per year, spend roughly 20, taxed for another 25 or so.....the remaining $ invested would get you pretty close, factoring in compound interest as well. Your biggest enemy could be the GIC/cash portion of your portfolio.

  9. #29
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    My expenses were around $20k and paid income tax around $29k last year though would get some refund due to RSP contribution. Income tax is a killer for a single person.

    I bought some ZRE, ZPR and will buy some VCN this year.....trying to reduce my fixed income position.
    Last edited by scorpion_ca; 2015-03-12 at 01:27 AM.

  10. #30
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    Net Worth Update -

    Q4, 2014 - $205k
    Q1, 2015 - $228k (around 11% gain)

    Target to reach $300k at the end of this year but doubt it....company stopped contributing group benefits and other perks.....might not get bonus and increment this year....however, glad to have a job.


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