Saturday, 3 November 2012

Financial Objectives

I thought it would be sensible from the beginning to set some objectives for what i'd like to achieve. I'll start out with some broad objectives, and add or refine them as my thoughts evolve. I'll organise these in terms of short term (over the next year), medium term (over the next 2-10 years), and long term (looking towards retirement). I'll look to review and update these at least annually.

Short term:
To reduce the cash portion of my asset portfolio to under 20% of total assets, from the starting 29%.
I think this is a conservative target, but there's still a lot of economic uncertainty around and i would prefer to gradually re-balance rather than fully committing to the markets from day 1.

Medium term:
I'd like to maintain a portfolio balance of at least 80:20, with at least 80% of assets invested in a combination of property, equities (including pension funds) or alternatives, leaving a maximum of 20% in cash.
The focus will be on asset accumulation and diversification. My current preference is for yielding investments (for example dividend paying equities, investment properties), which should hopefully be able to generate positive returns in strong or weak markets.

Long term:
I hope to be in a position to comfortably retire before the age of 50. The idea of retiring early is currently quite appealing, but i appreciate its still a long way away. I'd at least like to get myself into a position where this would be possible if i still feel the same in another 10-15 years.

Key to achieving all objectives will be to maintain or improve on cash flow generated from employment, unless i get lucky in a lottery!

1 comment:

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