My goal is to retire at 65 with over 1 million dollars at my disposal. But a few weeks ago, I realized that if I had any hope of reaching my goal, I needed to take action. Having already completed the first step, by increasing my automatic contributions to $500 a month, the next step on my road to millions was to reorganize my investments to maximize my money making opportunities. Here is how I did it.
My strategy, after taking some time to talk with my investment rep at my bank, was to go with a pre-selected, managed portfolio. Now that I have $5000 in my account, I have access to a higher level of managed funds, which means that I don’t have to lift a finger to manage the distributions of my portfolio (remember last week’s blog; if you’re not great at it, let someone else do it for you).
I won’t be reorganizing and shifting the investments myself, but I did want to fully understand exactly what I was getting into. Here’s how I saw it; when I want a nice new dress, I don’t need or want to sew it myself -I want something that has already been expertly constructed to fit me like a glove. But I would never leave the store without trying it on first, knowing exactly what I was getting into.
So here’s how my portfolio looks now: My investments are expertly constructed for growth, meaning that I’ll take on a bit more risk, which I can afford to do at my age (a formula, that fits me like a glove).
My œmust have criteria broke down like this
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I want the potential for long-term capital growth with minimal income opportunities
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I can accept considerable fluctuations in the value of my investment
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I am planning to hold my investment for the long term (minimum seven to ten years)
Looking at my investments in more details, the distribution breaks down in the following way
27% Canadian Equities
25% Fixed Income
25% US equity
21% International Equity
I’m feeling good and confident about where I am now.I am prepared to take on some risk, but I am confiden that the market is getting stronger and I’m looking forward to watching how my investments react.
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