A Goal-based Approach Investing StrategyUncle8888 has adopted a Goal-based Approach investing strategy by setting for himself a 10-year progressive Goal Targets to be achieved for each year from 2012 to 2021.
Our investing journey is not Horse Race or Rat Race where we compete against others. No! It is our investment Marathon Race where we set our own pace and compete against ourselves to win our own race.
Year 4: H1 2015 Result for Tap No 3 (Cash Flow from Investment Portfolio) Achieved 32.1% against 34%of 2021 Goal Targets.
Investment Portfolio XIRR Track, Measure and Visualize! Without doing it; how to revise investing strategies and to improve year-on-year investing performance?
Portfolio's XIRR includes all investable cash plus the current stocks
value at market closing price as on 30 Jun 2015.
Since one year ago:-4.2% Since 1 Nov 2008: +1.8% Since 1 Jan 2003: +8.8% Since 1 Jan 2000: +8.1%
The reality of riding market cycles of Bull and Bear
This reality cannot be anyhow extrapolated in any form of theoretical knowledge including the most popular form of compounding interests - the Eight Wonder of the World. No. You can't! Embracing Three Taps Solutions to Retirement Income For Life Model
Uncle8888's Wealth's Formula: Wealth = Asset Value + Cash Flow Where Sustainable Cash Flow = Tap 1 + Tap 2 + Tap 3 and volatile market pricing of Asset Value becoming less significant. Since Tap No 3 is enough to supply the liquidity needs; Tap No 1 will remain shut.
When we, the most savvy Financial Bloggers or Retail Investors are GONE!
What can happen to our assets?
How to protect our human asset value and financial assets value?
How many financial and investment bloggers talk about it? Wealth = Asset Value + Cash flow Asset Value = Human Asset Value + Financial Assets value.
For our human asset value, we can use life insurance to protect it.
But, for our financial assets especiallyour investment portfolio, our powerful investing strategies, our most savvy investing Mind; seriously have we, the most savvy investment and financial bloggers think about it?
Can our dependents or next-of-kin safely take over and protect our financial assets and continue to generate that kind of cash flow without some active portfolio management when we are GONE?
For the past few years, Uncle8888 has been thinking very hard.
SMOL: Grasshoppers fly with BOTH wings. Ants have forgotten the
art of flying after their maiden mating flight. More like the Queen
conveniently don't share this truth with her daughters...
Okay. Ants don't fly so ants lose out?
Never mind. Ants know that bad times and uncertainties are always some years ahead of them so they plan and plan.
Got Plan A, Plan B and Plan C.
They will crawl anyhow. They will crawl anywhere to build up bit by bit a large Reserve or Reservoir for the long Sunny days when Grasshoppers are dancing happily for the longest. Long summer. Shiok!
Tap 3 (Plan A: 10-years investment goals from 2012 to 2021) Cash flow from his investment portfolio come from his realized net profit/loss (Uncle8888 won't like to sell at losses. He seldoms has net realized losses. If the paper losses become so unbearable; he will just write them off and take a hit on his performance for that year.It is non cash item like any company accounting principles) and dividends received for the year.
Since he is not an active trader most of his cash flow will come from dividends. Ants don't anyhow pluck Goals from the sky hor! He will count using Microsoft Excel to the nearest decimal points and not akar akar using his 21 up and down fingers. :-) His basis for his 10-year Goals for Tap 3 Tap 3 is his yearly goal to meet his yearly family living expenses for the next 10 years (2012 to 2021). His family living expenses are calculated from his historical expenses when he suddenly woke up and realized the importance of tracking his family expenses if he wanted to know "How Much Is Enough?".
Trust but Verify!
He trusts History but verify the Numbers with future inflation and with Chart, Graph and the Image.
How Future You Will Thank You!
and when History becomes Goals. His Goals is more commonly known by folks as passive income.
Depending passive income from dividends?
Someone has already said ...
I feel that dividend into is not very passive nor dependable. It is a good supplement but cannot be "depended" on.
Uncle8888 has known Mr. Market too well. We can't really trust Mr. Market and be too dependent on him to meet our day-to-day survival.
Keynes: "I do not believe that selling at
very low prices is a remedy for having failed to sell at high ones... I feel no
shame at being found owning a share when the bottom of the market comes."
Uncle8888's 10-year Goals for all to see. Ants, Butterflies and Grasshoppers are included.
Got Goals! Got Plans
This year didn't hit the target. No shame!
Next year, we can walk, run, jump or screw to plan to make it. No shame!
No shifting Goal Posts. No shame!
wrote: "I do not believe that selling at very low prices is a remedy
for having failed to sell at high ones... I feel no shame at being found
owning a share when the bottom of the market comes. - See more at:
How come? It is the way how Uncle8888 thinks how much is enough over his remaining lifetime. Now, he sees what he likes. He eats what he likes. He likes some fun. He likes some traveling. He is not so frugal now. But, when the day he needs to stay at the nursing home. He will be absolutely frugal! He will spend on needs to stay alive. No more eating out. No more fun. No traveling. Absolutely frugal! From not-so-frugal to absolutely frugal lifestyle how not to afford it? Right? No?
Real people. Real Example ... Uncle8888's top three holding and also his top three longest holding period from 12 to 14 yrs. 12 years is a long time! Long enough for a baby to reach his or her secondary school level. :-)
14 years of collecting dividends from Kep Corp. It should be more than enough to show good patience. Right?
Total Return Vs. 2007 Peak Stock Price:
Just about 2.5% above 2007 peak.
Market timer won!
13 years of collecting dividends from Semb Corp. It should be more than enough to show good patience. Right?
Total Return Vs. 2007 Peak Stock Price:
Just about -9.1% below2007 peak.
Market timer won big!
12 years of collecting dividends from DBS. It should be more than enough to show good patience. Right?
At course fee of $3,000 per person and let say net margin of 50%.
Here is the Maths .. Net margin = 20% of $3,000 = $600 10,000 were tutored or trained faithfully or diligently to become millionaires = $600 * 10,000 = $6,000,000
At course fee of $2,000 per person and let say net margin of 50%.
Here is the Maths .. Net margin = 20% of $2,000 = $400 10,000 were tutored or trained faithfully or diligently to become millionaires = $400 * 10,000 = $4,000,000 Think about it. Which is easier? 10,000 people contributing $3,000 or $2,000 per person to make one person Multimillionaire or One person to make 10,000 people millionaires. Think for yourself. Folks!
When you have patience ... When you are investing for your future in the decades head of your time ... When your human asset is compounding well .. Use STI Blue chips as our watch-list. For most of us as retail investors, we better be honest with ourselves. Our war chest is limited. The 30 blue chips in STI is more than enough to deplete our war chest. Right?
KEPPEL Corporation's majority owned company Ocean Mineral Singapore
(OMS) has bagged a 15-year contract for seabed exploration within the
Clarion-Clipperton Fracture Zone of the Pacific Ocean with the
International Seabed Authority (ISA).
OMS, sponsored by the Singapore government, is the first Singaporean
company to be awarded an exploration contract for polymetallic nodules,
said the company in a statement on Tuesday. This follows the approval of OMS' application for the exploration licence for polymetallic nodules by the ISA on July 21, 2014.
Said OMS director Ong Ye Kung: "We are encouraged by reaching another
milestone in our journey to find a more sustainable way of supporting
the world's need for metal resources. In addition, we look forward to
working closely with the ISA and other stakeholders to develop an
environmentally responsible and commercially viable solution."
Polymetallic nodules - which contain copper, nickel, cobalt and
manganese, and rare earth minerals - have the potential of supplying
these key metals to meet growing global demand in applications such as
construction, aerospace and alternative energy, said OMS.
Supported by the Keppel-NUS Corporate Laboratory, OMS will be
conducting environmental studies and surveys for deposits of
polymetallic nodules within the approved area of 58,000 sq km, which is
approximately 80 times the size of Singapore, added the company.
Only 15% made profits larger than 2.5% and 40% made losses: Report.
In the financial year ended Sept 30 last year (2014), 902,300 investors sold their CPFIS investment.
CW8888: 361K CPF members lost their hard earned saving!
Investing stocks as advertised in the newspapers, social media, blogs, and forums look and talk so easy. Yesterday Uncle8888 read the best BS so far in the investment and finance blogging sphere; from $30K to $1M in 5 years; it can be as easy as 30-20-20 rule. LOL!
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