5 Year Plan Explained Part I
If you haven’t sat down and done a five year plan I totally recommend doing it. From a investing point of view it can change your view of investing.
When you keep it vague, any investment that rears it head could be the right one, the one you can’t miss out on. There is hot feeling of desperation you don’t wait to miss out.
There is a saying that success is not what you say yes to but what you say no to. Investing is about learning what at this point of time for the market and more importantly for your current position what do you need to say no to.
It’s incredible the how empowering it is to realize you can and you can relax in saying no.
Beginning the 5 year plan
Sure absolutely it’s with a end vision in mind, what you want to be, and see your your investment portfolio looking like in five years, and more importantly your life.
But once your beginning to get it down on paper, you have to be completely honest to yourself as to where your investments are now. If like me you realize you have a lot of buy and hold investment that aren’t going to be transforming into cash generating anytime soon. Once it’s on paper, and I realized I was capital gains (kind of capital gain constipated, waiting for one of the investments any one to go up 1000%). This is not a sustainable investment plan. Much to my hoarding gene’s
So what is the over-arching theme motivating you? for me it’s a five year plan that not only replace my own income with a active investment portfolio but my partners and our expanding family.
People could say what when you are starting a family you can’t worry about investing, everything blows out. Well I figure if i can’t do it now,
Rules for the five years – as part of the just say no plan to investing I am working on some rules to keep, I get way too excited by the discovery of a new investment. (Think Mr. Squiggle and the rules are Ms. Jane)
- Reinvest all capital (principal)
- cash flow positive investments only
- a few speculative investments
-the money from bridging finance at least 60% goes back into bridging finance, the rest into property business/speculative assets
I’ll write more soon about this and post up the breakdown of my five year plan.
