Goals & Aspirations

[Baa_Baa]

By accident, hard work, good planning, foresight, intuition, insight or whatever, not everyone is going to make it. At least not the first time, or maybe even the second. Even some who have made it are destined for the unforeseen.

My goals this year are to better my return on shares in 2014; learn how to value a company; share my charting and timing experience; and get back on the pony.

It is heartwarming to see how ShareTrader has evolved from the early 2000's to an open and sharing community of wise investors. I really value the wisdom here, it's helping a great deal.

BAA

[baller18]

So you're telling me you can sell a house within a day of it listing and have the money almost immedietly? Perhaps we have a different definition of liquid asset..

I SHould have re-phrased it better.

Your statement, "So basically anyone in Auckland central suburbs who is mortgage free is a one percenter (HNI?)? Seems flawed given our housing situation. It should be based off 'liquid assets', IMO."

My point was, regardless you sell it in a week, in a month, you will get your million dollars, so at the end of the day regardless if it's a liquid asset or not, your net worth is essentially the same which therefore, takes you to that one percenter.

This easily qualifies someone to be associated in the 970k net worth club to be in the one percenter... Regardless if it's a liquid asset or not, makes no difference to someone's net worth at the end of the day.

[iceman]

A very interesting post Baa Baa. Thanks for sharing and give us another "risk" to think about. I agree with you that there is a lot of wisdom and kind sharing of views on this site. Long may it continue and may your pony continue galloping along in 2015.

[skid]

This is a great thread. I think setting distant goals, and then achievable shorter term steps towards that long term goal can really help you succeed.

(edit: also there seems to be a number of 1%'ers in our midst already)

A goal that I often think of is to have $10m USD of investment assets. A portfolio of that size would generate c.400k USD of annual income, rising with inflation. With that I think I could do whatever I wanted.

To snapiti's question, I think some people that make a few mill take the foot off the gas. Each to their own, but I think you need to push hard until 10+ before dialing back your risks.

Good luck to everyone with theirs!

You can look at that a number of ways--one of them would be that you have what you need at 3-4mill(and even alot of what you want) so to put that at risk for the possibility of 10mill means that person either has some pretty grand ''wants'' or it has become about power rather than wealth(and then at 10mill--maybe 20)and so on(its very hard sometimes to stop that train once it gets going)But there have been some real train wrecks along the way(Ive seen it with property,and Im sure with shares as well)---of course there are alot of ''inbetweens''

[skid]

One great byproduct of becoming really wealthy is that it can present an opportunity to do a better job of helping some than the status quo.
Riding a motorcycle through Africa (Garth Morgan)and seeing first hand what was needed(with out the BS)-and then providing it, (with the spoils of the trade me sale)was something I admire.

if only more did it

The goal was not the money itself--but what he did with it..

[fungus pudding]

You can look at that a number of ways--one of them would be that you have what you need at 3-4mill(and even alot of what you want) so to put that at risk for the possibility of 10mill means that person either has some pretty grand ''wants'' or it has become about power rather than wealth(and then at 10mill--maybe 20)and so on(its very hard sometimes to stop that train once it gets going)But there have been some real train wrecks along the way(Ive seen it with property,and Im sure with shares as well)---of course there are alot of ''inbetweens''

An excellent post. Knowing when to stop is crucial, or put another way, knowing where you want to be at the beginning helps tremendously. There's little point in continually building assets and wealth you will never use.
The 970k thing where I live (Dunedin) is easy. I don't think I know anyone worth less than a million and a good few well over. That's probably because houses are cheap leaving a hefty disposable income to invest. e.g. 800,000 will buy a good house and say a student flat returning 30,000 per annum as well.

[Minerbarejet]

is that cps or in $'s miner........

Growth, per annum.
Ill take dollars though.

[RGR367]

I would not consider the house I'm living as a liquid asset and neither should anyone aspiring to be on the so called NZ 1%. When the house is sold you'll still need a roof over your head. Selling your old one and buying a new one will still take some time. So called liquid assets are those that can be disposed right away in as short as a week, I reckon. And that $970K net should be enjoyed and make sure you're healthy enough to enjoy the "fruits of your toils" for another 20-30 years comfortably.

[Minerbarejet]

I hope you mean share growth per annum and not revenue growth.
15% sales growth from here will equal 15.31cps for sure.

Dividend growth, snap, not to be sneezed at.
Realise there might be a bit of a wait but no hurry ,eh.

[Bjauck]

I now aim to achieve a 5-6% return,after modest living costs and after tax, above inflation on total asset base(not hard to do if you own a home in Auckland but I don't).

We have had a few good years of appreciating asset values so achieving a 5-6% in the future will be even more of a challenge. Share prices are even more prone to wild swings than house prices. Remember 1987, 2008, and ?

A couple retiring with a house and $2m in financial assets may still only have approximately $70,000 after tax income plus government super. It may provide a comfy but not an extravagant lifestyle. Private Medical bills, major house repairs, private hospital fees (without government subsidy as you would not qualify) for one partner may easily put a dent in the asset base and income. I think you may need those assets PLUS a fat Kiwisaver or other retirement scheme balance.