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All Aboard the Wealth Rocket

13 | By Michael A. Robinson

New Year’s Eve is one of my favorite times of the year.

And not because I look forward to the lavish parties folks like to hold on that final night of the year.

In fact, I don’t party at all.

My wife and I have actually established a neat little ritual that lets us say adios to the outgoing year and to welcome in the new one by setting some goals for the one that’s coming in.

We dress up and go out for a late dinner – usually at one of the nice local eateries that we like and support. But before we do, the two of us always sit by the fire and have our most important “family talk” of the year.

Each year, you see, I write an “annual report” that details our achievements for that year. These can include accomplishments at work or in the civic projects we’re involved with, great investments we’ve made, and projects we’ve completed.

As my wife and I sit by the fire, we review that “report” – and celebrate our accomplishments. And then we establish goals for the New Year – creating an “action plan” whose success or failure we’ll review at our “chat” the following New Year’s Eve.

I’m sharing this story for a reason: My wife and I have been doing this for more than a decade now. That’s long enough to see that this “tradition” has had a positive impact on our lives.

And it points to a habit that I believe every investor should develop.

I’m talking about developing a personal investment plan.

It can help make you a winner … in fact, it can help make you rich.

And today I’m going to show you how…

A Superhighway to Super Wealth

You’ve heard me say this many times — the road to wealth is paved with high tech.

And like any journey, you’re more likely to arrive at your intended destination safely, on time – and without getting lost – if you have a proper map.

And that “map” is essentially what an investment-action plan is all about.

I’m speaking from years of experience.

There’s a very good reason that an investment-action plan breeds success: The actual process of creating the plan – and being honest about your goals, your feelings about risk and about the amount of capital you have to work with – dramatically elevates the odds that you’re going to succeed.

With that in mind, let’s go through just what your specific action plan might actually look like.

Getting Started

Let’s take a look at how you can use these guidelines to start putting together your action plan for 2014. You need to:

  • Detail Your Goals and Objectives: This section is crucial because your goals – how much you need and when you’ll need it – influence every other part of the plan. It might start out with a statement akin to: “I intend to retire in 20 years, and know that I will need to have a net worth of at least $2 million to make this happen.” Your objectives might include some near-term goals, as well, such as funding your child’s college education, buying a vacation house, setting up a foundation, or retiring to travel abroad.” Be sure to list all your goals, as well as the estimated costs. And don’t forget to include your dreams – buying an antique car, a boat or that small farm “upstate.” After all, dreams are what make life special.
  • Assess Your Feelings About Risk: You need to be honest as you assess your capacity for risk. After all, the greatest investment plan in the world won’t work if you won’t stick with it. For instance, if volatility freaks you out, maybe you choose investments – such as exchange-traded funds (ETFs) – that still offer high average annual gains, but that don’t have the wild swings that the underlying individual stocks might experience. On the other hand, if you have ambitious (aggressive) financial goals, or are getting a late start, you’re going to have to look at higher-growth investments – which, by definition, carry higher risks. Being honest about risk will help you come to terms with this reality.
  • Draw a Map: Goals are great, but you have to figure out how you’re going to reach that destination. You need to work out how much you need to be putting away today, tomorrow and next year in order to get where you want to be. Make sure you’re taking advantage on all that’s available – like the company “match” in your 401(k).
  • Start Now: As part of your statement of purpose, make sure you say what you’re going to do in 2014. It might read something like “invest in quality technology stocks with the potential to double my money.”

Somewhere in your plan, make sure to address the specific steps you’ve been putting off – such as making better use of stop losses to protect your capital and profits. It might also include a target return for your portfolio – for instance, stating that you’re pursuing 25% gains.

Working the Plan

Now that you’ve done your review, you need to put it all together. This part of the document will detail your:

  • Investment Focus: In this part, you will specify the areas where you are already invested and where you want to go. It gives you a bird’s-eye view of how you intend to blend things like real-estate, bonds, precious metals, retirement accounts and, of course, technology stocks. Detail how you need to rebalance your holdings, shedding losers and searching for new potential winners.
  • Success Journal: It’s important that you keep track of your investment decisions and why you made them. That way, if you are making mistakes that cost you money, you can review the results you got so that you can make better decisions next time. You also should commit to reviewing your trading journal at specific intervals, no less than once a quarter, and monthly is better. You want to uncover destructive patterns before they cost you serious money.
  • Tools and Education: You should commit yourself to continuing to improve your skills as an investor. There are several ways you can do this, such as attending seminars on how to chart stocks or taking a newsletter written by an editor you trust and who has a good track record.

Also, remember that at Strategic Tech Investor we’ll be talking about tips, strategies and insights in the New Year that will put you on the road to wealth.

Happy New Year.

[Editor’s Note: Michael just launched a new monthly high-tech newsletter that’s called the Nova-X Report. With Nova-X, Michael provides specific “Buy” recommendations – as well as up-to-the-minute updates that include exit strategies to allow subscribers to maximize profits. The action plan in Michael’s Nova-X Report keys on the top tech trends that are reshaping our world – including Big Data, Biotech, Cloud Computing and the Mobile Revolution. Michael is giving Strategic Tech Investor readers a substantial discount to join his Nova-X Report. Go here to learn the details. ]

13 Responses to All Aboard the Wealth Rocket

  1. Robert Hillier says:

    Hello Michael, Warren Buffett may be right about being concerned about fiat money but it’s made round to go around. Great wealth doesn’t always bring great happiness. The best thing very wealthy people can do with their money is give a lot of it away to good causes.

    I believe wealth is created by science and the acquisition of knowledge and toil. I agree with you that the tech industry will continue to create wealth. I’m over 75 and the house and everything else is paid for so I’m not stressed. I’m just interested to keep abroad of new things.

    I hope you and your wife enjoy the holidays.

    Best wishes,

    Robert Hillier Australia where it’s summer time.

  2. John Childs says:

    Dear Michael,

    I’ve signed up for your information service and find it very stimulating. Below are two passages from a book by John Eldredge, Walking with God.

    “You can’t possibly master enough principles and disciplines to ensure that your life works out. You weren’t meant to and God want let you. For He knows that if we succeed without Him, we will be infinitely further away from him.”

    “You might have heard the old saying, ‘Give someone a fish, and you feed him for a day’. Teach him to fish and you feed him for the rest of his life’. The same hold true for life itself. If you give someone an answer, a rule, a principle, you help him solve one problem. But if you teach him to walk with God, you’ve helped him solve the rest of his life. You’ve helped him tap into an inexhaustible source of guidance, comfort, and protection.”

    Peace,
    John

  3. Paul says:

    Never thought of setting investment goals before . Now I’m getting serious and I’m not playing around . I like your comentary michael thanks .happy new year .

  4. Gerry Nannen says:

    Michael:

    Your idea confirms one I have been using for most of my 35 year marriage with my wife Toni. In the past we went away for a couple of days to a nice hotel in Boston to do our year-end planning and goal setting and review of the prior year. It worked so effectively, but when the kids (three) got to a certain age we discontinued for a while. Interestingly, our financial success stalled. We are back on track and find it is a wonderful respite from the hectic lives we lead.

    Love all you e-mails and investment suggestions. I own a registered investment advisory firm and use many of your tec/bio-tech ideas in my portfolio. Thanks for all you do!!!

  5. Dennis James says:

    I’ve set up my virtual wallet on coin base.com. Do most people just buy through them or use another site to purchase bit coins?. I notice a big difference in prices between coinbase and others like mtgox.Thanks for your help on this.Also tried to set up an account with Havelock investments but got confused and lost in the process. When you made your videos on bitcoin opportunities back in middle or early 2013, it was trading at 100-200 dollars. Now its hovering around 800 , should a person wait for some sort of pullback?

  6. tim says:

    Being a first time investor and a long time hands on construction worker living pay check to pay check saving what i could i feel that your advice is the best.

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