12 January 2011

Over the past few years I have wanted to start a strong retirement fund.  Unfortunately because of bad life decisions (and job insecurity) during my late 20s/early 30s this has been an impossibility.  That has now changed.  This year (early 40s), I'm going to track my first serious foray into investing long term and for desires (wants).  Except for my mortgage, I am completely debt free so I should be able to set aside a bit over the next year.  My short term goal is $15,000 in investments (401k, ETFs, hard currency holdings).  Long term goal (within 10-12 years) is to retire completely and to live comfortably (not extravagantly) anywhere in the world I choose.  I would also add an Aston Martin DB-9 to that list (hey if I'm thinking big may as well think big right?) At first glance, these appear to be quite inaccessible goals but I've just made them and I'm going to stick to them.  That's the thing with goals.  You may not hit them first time around but if you set them you're going to come a lot closer than you may have.  Of course you may also surpass them.  Either way, it allows you to stand back and adjust accordingly.

As it stands at the moment - total less than $1500

401k - 75%

hard currency (silver) - 25%

Except for my 401k I'm staying out of mutual funds.  My 401k does require mutual fund investment but they are all in emerging markets (unfortunately dollar based funds).  Personal investments moving forward will be ETFs (mining, emerging markets, silver, gold, etc.), hard currencies, and some very basic commodity investments down the line (the third requires a little more than I'm at currently and will take some time to work towards)

Now why am I doing this?  Two fold really.  I have sat on the proverbial sidelines and watched year after year the investments I follow continue to grow (some at quite a fast rate) while not being able to invest in them.  Some of these investments are ones I would no longer consider and some are ones I want to focus on now.  Second reason, to prove a point to those that claim mutual funds are the only 'safe' way to invest.  

But this is your life's investments we're talking about some would say.  Yes it is. And I believe in my judgement, and the judgement of others I've been watching these past few years in different forms of media, to know this is what it takes.  It's not the only way to 'get rich'. There are other ways and for those folks that want to dump their money into real estate, mutual funds, or housing, go for it. It won't happen tomorrow, there may be a few corrections in the market I have to sit through biting my nails but these investments are based on solid companies and products that have been and will always be with us.  I may miss out on the one company that jumps 20% overnight but in the end I'd rather go with something I know is going to grow 20% a year rather than something I 'hope' will grow in two weeks  

I will be updating this blog once a week, sometimes with current events or my thoughts on current events, sometimes with my current totals