2020 Financial Goals

Last year we used our financial goals as achievements or milestones and a way to redirect our investing funds. This year, as it’s a good practice, we will respect the pattern, but as opportunities can appear from nowhere, I want to check minimum 2 or 3 goals from all the list.

As I said last year, we consider this financial goals to be the milestones we need to reach for a healthy and self sufficient portfolio (after all, who doesn’t want to have more free time).

“You are never too old to set another goal or to dream a new dream”

C.S. Lewis

Financial goals

Now, last year was only for consolidation on existing assets, but since last October I really feel an itch regarding Stocks. Definitely we want to diversify to this class of assets.

Some time ago, I found during my blogs browsing a graphic representing the risk versus an asset, and when I did our portfolio I took it into consideration (I would definitely paste the picture here, but there are two small problems: 1. everything is not in English, 2. I can’t identify the source. I promise I will do an article on it and even redo the graph). Stocks are in the middle of this graph, offering a medium yield versus a moderate risk, and why I say that, because is long time since we should have started.

Going back to our plans, I propose the following targets;

P2P: We already have a 1000EUR account (1.120USD), not taking the accumulated profit into consideration. But it will be nice to have another platform with a 500USD investment to start. In terms of profit I target a 10% return on the account.

FOREX: Respecting last year’s plan, should make a contribution of 600USD (annual contribution) and we will see a total value of the account of 2740USD (that is around 900USD in profit).

State Bonds: I still consider them a good, low-risk investment. Currently there are no interesting offers in Romania, maybe except last year’s program (‘Tezaurul’). I will take a look at external markets. I have no real target here, but the 400-500USD investment is possible.

STOCKS: This is the biggest goal of the year. And I am interested in BVB (‘Romainian Stock Market’) stocks. My end target is an investment of around 1100USD.

ETFs: are our priority 3 on our investment list. In fact, if we are going with the BVB stock market, there is also an internal EFT listed there. So….maybe we can hit two birds with the same stone (ETF+STOCKS on the same account). Of course, the target for ETFs is 500USD invested.

Except all listed investments, we consider paying in advance the mortgage, and as a sum two months should be enough.

And for the last goal, put back in the economy buffer 2000USD (this is an addition to what we already contribute).

green plant in clear glass vase
Photo by Micheile Henderson on Unsplash

So, big plans for this year, and frankly I think I am shooting a bit high with the numbers (there was a quote about aim high or go home…something like that…I’ll find it)! Let’s see what can we mark at the end :D.

P.S. I know that last year, I made a conclusion in a checklist for all the goals, but I think that they are well written and we will have a summation in the yearly retrospective. If you miss the list, please leave me a comment and I will update the post.

Thank you for reading this!

Disclaimer: I am not a financial consultant, all the information you find here are my decisions, I taken in that moment, on my own analysis. I am open to any type of discussion about money. If you want to replicate my portfolio take into consideration that it is your money.

Leave a Reply