As 2016 has been on for like 13 days and I didn’t find the time to put some goals for myself, I’ll be doing this now.
Now, what are the objectives?
– First of all, I would like to invest a fresh €20,000 in the stock market to improve my dividend income and work my net worth towards €50,000. Knowing that my monthly paycheck brings in €1,502, this will be a huge challenge. In an upcoming post I will specify my savings rate and how I want to reach this target. But I can already tell you that – normally – my paycheck will be risen to at least €1,600 in the month october as I will be promoted then.
– Another major goal is to put at least €10,000 out of the €20,000 in ‘iShares Core S&P 500 UCITS ETF – Acc’ (CSPX). I have the tendency to buy too much individual stocks and I feel like I should have some more security in my portfolio by holding an index tracker. This index tracker adds the dividends to the shareprice so this way I don’t have to pay taxes on the dividends (extra 0,5% yield, yippie-ka-yay). For me this ETF is a very important one in diversifaction and easy handling. This requires very little maintenance and in the long term it will always go up. I have read a lot of books and The Intelligent Investor really persuaded me to go for the S&P 500 tracker. I’m deeply convinced there aren’t much better buys. If you would like to know why, I strongly recommend to read the book. Very good one.
– My third goal is to clean my portfolio some more. Although this goal doesn’t really depend on myself, I consider it as a necessary one in my journey. As I already told in the ‘My Portfolio’ section, I started my investing career speculating. This means I ended up with 2 stocks that don’t fit me anymore, being Euronav and Peugeot. Another one that I plan on selling as soon as the price hits acceptable, is ASML. I want to work towards more solitude in my portfolio. If all these stocks could be sold at their initial entry price, this would give me €4,300 of cash. Certainly the latest weeks I found out how important it is to have some spare cash in case the market is depressed. Instead of only buying new stocks at a fair price, I prefer to strenghten some positions of solid stocks in my portfolio as well. I don’t like to buy into new positions when old ones are in red. I think this is the Buffett coming up in myself, “if they go down just buy more”.
– The fourth goal that has been set: receive at least €1,000 in dividends (cash and stocks). I’m currently on €650 if every dividend remains the same as in 2015. For the year 2015, I only received €78 (I started late buying dividend stocks so most payouts already happened). This would be a rise of almost 1,200%!
– Last but not least, a personal health objective. I managed to practice quite a lot of sports in 2015 despite my busy working scheme. I would like to maintain the same physical level.
So far my goals for 2016, now what about yours?