Profitable Investing Goals The Number One Tip For Making Profitable Investments

Michael Jordan, Joe Montana, and Tiger Woods were all outstanding because they set objectives for themselves. The same is true for people joining the investing field: select a professional goal and make it a priority to achieve it. Before you make your first investment in the stock market, you should ask yourself, “What am I hoping to achieve?”

Everyone enjoys giving back, but it has its place and time, neither of which can be found in the world of stock investment.

The majority of investors just want a solid return on their money. But what constitutes a satisfactory return? Is it enough to retire? If it’s based on their retirement goals, the issue becomes how long before they reach retirement age. If you’re retiring in two years, your investing approach will be quite different than if you’re retiring in 15 years.

Let’s use myself as an example of a normal investor. I’m 40 years old, have a good job, and can invest $300 every month. We’ll have to alter my circumstances a little and pretend I have nothing in my portfolio but wish to retire with a million dollars. Is my aim something I can achieve if I had $300 on hand right now?

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Assuming I can equal – if not outperform – a stock index return of 10.4 percent annually, my money will be worth about $380,000 by the time I retire at 65 years old.

Damn, I fell short of my $1,000,000 goal!

I’ll need to invest more than $300 every month to reach that level. (I’d need a return of at least 17–18 percent every year to meet that goal.)

Okay, an index fund isn’t going to cut it for me (particularly if the history of these stocks suggests it won’t perform much better than 10.5 percent!)

Okay, let’s take a look at another situation for me.

Let’s pretend I’ve been working on my investments and finances for a while (must have listened to my father!!) and I’ve saved a little over $100,000.

Is it possible to reach the million-dollar goal with that amount as a lump sum start?

If I’m determined on utilizing index funds as my primary investing vehicle, the answer is yes!

I should have over $1,000,000 by the time I retire – and I won’t have to add a dime to my funds if no significant market upheaval occurs and persists (ignoring the typical swings you’ll receive over a prolonged period of investment).

But what makes it possible for me to strike my goal in this situation? The fact that I was on a mission.

Goals, goals, and ambitions all help us concentrate on reaching to the finish line with the desired outcome.

You may construct your investing strategy by setting goals to help you concentrate on your investment.

Is it necessary to be proactive and seek a large return, or can you achieve your objective by just protecting your funds and earning a lower return?

Set a (reasonable) goal for yourself and keep it in mind at all times.

Be humble and focused.

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