The first item on my agenda today is to wish you a happy and healthy New Year!
I hope you’re looking forward to the year ahead like I am, because I expect we’ll see plenty of exciting tech investing opportunities, despite the choppy market conditions toward the end of 2018.
For many, the end of the year marks a great time to make resolutions that improve our lives. So with that in mind, I’d like you to consider creating your own Investment Action Plan for 2019.
It’s something my wife and I have done for more than a decade now, and it’s proved valuable as a way to update and clarify our investment priorities, which can get lost in the shuffle during the busy year.
See, each New Year’s Eve, my wife and I sit down, prepare ourselves for a “financial reset,” and spend some quality time together discussing our accomplishments over the prior year. We savor our investment successes – and reflect on the failures that taught us valuable lessons.
Before we wrap up the proceedings and head out to a nice dinner, we set up a new action plan that we’ll review again come this time next year.
What started out as our fun little ritual has turned into a positive financial habit – the sort that can help you attain your financial goals no matter what the market throws your way.
And it’s why today I’m going to show you how to set up your own Investment Action Plan for 2019.
It could even make you rich.
The Road to Riches
I’ve said it before, many times, because it’s true: The Road to Wealth Is Paved by 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.
This “map” is essentially what an Investment Action Plan is all about.
I’m speaking from years of experience.
There’s a good reason that an Investment Action Plan breeds success: Just the process of creating the plan – and being honest about your goals, your notions about risk, and about the amount of capital you have to work with – dramatically elevates the odds you’re going to succeed.
With that in mind, let’s go through just what your specific Investment Action Plan might actually look like…
Use these guidelines to start putting together your Investment Action Plan for 2019. 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 I 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 travel abroad. Be sure to list all your goals, along with the estimated costs. And don’t forget to include your dreams – buying an antique car, a boat, or that small farmstead. 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 should choose investments – such as exchange-traded funds (ETFs) – that offer high average annual gains, but which don’t have the wild swings 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 need to look at faster-growing 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 must figure out how you’re going to attain them. 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 of 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 2019. It might read something like “Invest in quality technology stocks with the potential to double my money.”
Somewhere in your plan, 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, it’s time to put it all together. This part of the document will detail your…
- Investment Focus: In this part, 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.
- Trading Journal: It’s important that you keep track of your investment decisions and why you made them. That way, if you’re making mistakes that cost you money, you can review the results you got so that you can make better decisions next time. I rarely make an investment without opening my Trading Journal and jotting down the thinking behind the trade. Otherwise, I would end the year with a list of “Buys” and “Sells,” and of gains and losses – but with no clue as to what factored into my decisions. For me, I reference the company’s financials, the stock’s chart, and any catalysts I see. And once I exit the trade, I enter not just how much I made or lost but also write down why I closed out the position. You also should commit to reviewing your Trading Journal at specific intervals, no less than once a quarter, and monthly is better. It’ll help you uncover destructive patterns before they cost you serious money.
- Tools and Education: 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 expert you trust and who has a good track record.
Now, before I sign off, I want let you in on a bit of news.
In 2018, my publisher – Money Map Press – must have had a pretty good Investment Action Plan of its own.
For instance, our net income shot up by a staggering 25%… and we couldn’t have done it without you. That’s why we’re allocating $2 million of this wealth to our readers.
So before you begin working on your Investment Action Plan for 2019, learn how to claim this “holiday bonus.”
Kick off the New Year on the right note – and with a golden opportunity. Click here.
And before you go, let me know the goals you’re putting in your 2019 Investment Action Plan in the comments section below. Feel free to ask me any questions you have there as well.
Happy New Year!