There might not be any way to plan for a global pandemic and its resulting financial panic, but that doesn’t mean it doesn’t pay off big time to plan ahead, even in times like these.
And going forward without a plan means risking letting huge opportunities to score massive profits pass you by.
For example, anyone who didn’t have an investment plan in place this year likely ended up freaking out along with millions of other investors, lurching from crisis to crisis and making a series of bad financial decisions.
Just as bad, they even ran the risk of sitting on the sidelines confused as the market came roaring back.
Consider that just investing in the S&P 500 when it rebounded last March 23 was enough to make 65% returns in nine months.
And that’s why today, in the first of two parts to set you up for a profitable 2021, I ‘m going to show you how to plan ahead, to give yourself the best possible chance of avoiding these pitfalls.
If you follow my lead here you can crush the market’s historic returns with breakout tech leaders.
Let me show you what I mean…
Now then, I hope you ‘re looking forward to the year ahead like I am.
I expect we ‘ll see plenty of exciting tech investing opportunities in 2021 as we have a change in presidential administrations and get a coronavirus vaccine out to the public.
And when it comes to planning ahead for investments, I speak from deep experience.
For the entire 25 years my wife and I have been married, I have written one annual plan for our lives and one for our investments.
And each New Year’s, we pour champagne, sit by the fire, and go over the plan to mark our successes and look for areas that need improvement in the following year.
Before we wrap up the proceedings and head out to a nice dinner, we set up our annual 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 financial freedom no matter what the market throws your way.
It’s why I was able to pounce when the market turned last March 23. Members of my paid service, the Nova-X Report, cleaned up.
Earlier this month, we sold a stock for 71.3% gains in just a tad over six months. During that period, the S&P 500 was up 19.1%, meaning we beat the benchmark by 273.3%.
Now you know why I like to remind investors that the road to wealth is paved with 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 planning ahead for the new year’s investments is all about.
I ‘m speaking from years of experience.
There ‘s a good reason that being prepared 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.
Step by Step
With that in mind, let ‘s go through just what your specific plan to invest in 2021 might actually look like. You’re going to 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 ‘ll 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 2021. 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.
This could be items like making better use of stop-losses to protect your capital and profits. It might also include a target return for your portfolio – for instance, at least doubling the S&P’s returns.
It may sound like a lot of work, but it has the potential to really pay off in the end.
For some help getting started, be sure to check back with me on Saturday when I will unveil my 2021 tech forecast and recommend three stocks in three sectors that I expect to breakout.
And you can even take it one step further with a subscription to my tech investment newsletter, the Nova-X Report.
What that means is that I will be telling you exactly what moves to make to potentially produce a steady stream of big winners.
In fact, we’re closing the year with a 94.7% win rate on all open positions, and I plan on making 2021 even better.
So, if you are ready to make subscribing to Nova-X a part of your investment strategy for 2021, simply click here to get started.
Cheers and good investing,
Michael A. Robinson