Search

 

 

New Page 1 New Page 1

Informative Articles

Hot Stock Investing ... Stock Trading Strategies & Tips for investors & day traders
Profitable day traders recognize that momentum trading is among the fastest & most effective ways to harvest BIG piles of cash in the stock market. The problem is that if you don't know what stocks to look for and how to approach them while...

Investing As A Sport?
I said last week that money doesn't generally buy happiness, but the lack of it can buy absolute misery. This, by the way, is not just my personal observation. It is the conclusion of some of the most respected happiness researchers (Yes,...

Investing In Real Estate Investors
With the never-ending changes in our Real Estate Markets real estate professionals are starting to pay attention to the sound of new commission streams of income. Some realtors have either shied away or ran-away from such terms as "Cap Rate," &...

Investing in the Czech Republic - Outside of Prague - Part 1: Brno Property
Imagine if you had bought property in Prague 8 years ago.... Brno property has been getting a lot of exposure lately. And for good reason. Attractive deals in Prague are getting harder to find. Attention is beginning to turn elsewhere. ...

Socially Responsible Investing
Socially responsible investing is all the rage these days. By some estimates, more than $2 trillion, or 12% of professional management assets, target socially responsible companies. Shareholders have invested more than $150 billion in...

 
Having A Goal In Investing

Having a goal is critical to your investing career. Goal gives you directions. It will also set your mind to reach that goal. So, before putting any money into stocks, the first question you should ask is what do you want to achieve with stock investing?

For most investors, the goal is not to be charitable. Charitable has its place and time. They want to earn return on their investment. So, how much money do you want to have at retirement age? Let's assume that we all want to retire by the time we are 65. How many more years before retirement age? Twenty? Twenty five? How much savings do you have right now? All these factors will change your investment strategy.

Let's consider several scenarios. The first scenario is a 40 year old investor. He has nothing in his portfolio and his goal is to have $ 1 Million by the time he retires. As of right now, he can invest about $ 300 per month. That is a good goal but is it achievable? Well, let's see. If he can match the stock index return of 10.5% annually, his nest egg would have grown to $ 381,787 by the time he is 65. Obviously, he fall short of his goal. If he can't save more than $ 300 a month, the only way he is going to get $ 1 Million is to have his investment grow by 17% year in and year out.

For this gentleman, his goal is to achieve 17% return on investment. Obviously, investing in index fund will not

Associated Websites

Associated Websites

 

Our Blogs are on UK small business and being a UK freelancer or contractor as well as website marketing and web design. If you are a biker we can help with your motor bike insurance.

 

We have a site for contractors  and sites for HomeloansUK and PR-Help. We provide Branding help and offer Free-Marketing-Help and help for IT contractors. For E-commerce information, visit Small-Business-Web. We offer Page Rank Web Links and Cheap Home Loans Direct plus 0-BadDebtLoans and more Cheap Home Loans Direct. Our sites also help with Negotiation of any Personal-Secured-Loans. Our site called Management-Today can help you Innovate-Today, but for more loans go to 1st4HomeLoans.

 

Our HomeLoansUK site is affiliated with Branding and TrafficBuilding sites and Sales technique site. Also on offer is Beauty-Online and FreeNetDesign. If you are a  contractor and need help with a Small-Business-Web then our E-Commerce site is great. If you want Easy-Mortgages or even 1st-4-Tenant-Loans go to 5-Star-Mortgages. We help find Cheap Kitchen Appliances and Low Rate Home Loans. For the IT contractor, EstuaryFinance can refer you to our Online IR35 Compliance site for help with IR35.


suffice because historically, index fund will only give you a return of 10.5%. Having this goal makes him more focused in his investing career. Instead of thinking that he can reach $ 1 Million by investing in index fund, he now has to find other ways to boost his investment return to 17% annually.

The second scenario is a 40 year old investor who had amassed $ 100,000 in savings that he had accumulated since his working days. His goal is to have a $ 1 Million by the time he retires too. He would have an easier time than a second gentleman. Our calculation shows that he can reach that goal without even having to add a penny more to his savings. Furthermore, his investment does not have to earn 17% annually. He can still reach his goal by investing in index fund which historically has returned 10.5%.

There is nothing wrong with having an investment goal. Goal helps you to focus. While having a goal will not automatically boost your investment return, investors with a goal will find a way to boost their investment return. Finally, investors should set a realistic goal too. Expecting a 50 % annual return on your investment might not be achievable if you just start investing or if your past return had been less than 10%.



About the author:

Investing Idea Is Free! You can get it now by visiting our commentary section at http://www.noviceinvesting.com