Be clear of what you eventually need, how much you can save and Count your ROI!

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I am going to share my thoughts on my investment strategy to accumulate for retirement.

Of course, I share to remind myself to follow it!

Let’s go.

  1. Take stock of one’s own assets. Know what we have, and the respective ROI. If course, count the loans and liabilities.

  2. Project a future savings schedule. That is the amount one would save for investment after subtracting expenditure from projected income. Face up to it. It is all we will ever save suppose things don’t change. True as for today.

  3. Add the two above together and record in a time line schedule. Current assets, liabilities plus future savings in an excel sheet with monthly or yearly projections.

  4. Doing the above should give us an indication of how much we will ever accumulate in our life. At least theoretically.

  5. At each time point, there would be a sum of current assets accumulated. Say, today, my amount is $100K, and I can see the value at the end, say $900K.

  6. The million dollar question is whether I can exceed the $900K with whatever investment I am getting into. I may need to set a target of final value with X% of inflation included. So that means my investment should beat that X% comfortably.

  7. Note. I just need to beat X% with a small margin at the end, and let that be my guide. I should not be greedy and imagine any investment that I take could go to the moon.

The reason is simple. This irrational thinking will cause one to FOMO. Rather, just accept that there is a limit to the amount of capital one has, and then work towards beating that X% above the final accumulation.

This way one have a basis to consider how to manage own lifestyle. Consider whether the final accumulation is enough, and how much time one has left accumulating savings. Got to strike a balance between saving and investing conservatively and investing in stuffs that has a higher yield.

Once done, we will know what is the expected ROI one should have with our savings.

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Disclaimer: This is not financial advice, and you should always do your own due diligence before investing!

Posted Using InLeo Alpha

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17 comments
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Good thoughts, sometimes greed and FOMO affect our own investments and we can end up frustrated, I think it is good to set achievable and logical goals with a good strategy.

I take this opportunity to invite you to read the post about Inleo delegations to generate passive income.

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woah you're big thats 10% of a million. once u reach a million everything gets faster!

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It is great to see that you have retirement in view and you are already planning for it. A lot of people will not actually plan for that

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It's simple but it works. I do think that making sure to do some research every now and then to make sure the investment is working out.

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It's great to not overcomplicate things, have a set goal and a workable strategy to achieve it. I think when we adjust our lifestyle to match the stated goal, it becomes much easier on how to achieve it.

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Striking a balance between investing and saving is worth it. I personally think all savings is worth a later investing. The challenge in meeting up goals is found in unexpected hyper inflation scenarios that keeps surfacing.

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This is perfectly true. When we are able to narrow down our needs, we will be able to control our greed

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"To control the greed" is something very important, though difficult. I know for example that soon everything is going to take a deep dive again. So the better thing would be to stop my DCA for a while, BUT since now we're still bullish, I don't do this ... yet... for now !LOL

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yes planning is very important.

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And more importantly, stick with you plan! !HUG

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yes but most of the time we can't

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What do you mean with that? Because we're too weak and we give in to our impulses? !LOL !LUV

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Profit taking and plan both are important in crypto

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