Investment strategyPortfolio review

My investment goals for the upcoming future.

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Posted By Eimantas

I guess I never really talked about my investment goals on this blog so far. So lets put some goals on the list, for the next few years.

Investment goals for 2019:

  • Grow my portfolio to at least 4500€ by the end of the year.
  • Have income from peer to peer be greater or equal to 300€ at the end of the year
  • Scout out potential brokers to invest long term.
  • Prepare 3000€ for potential entry into the stock market.

To explain my goals, simply 4500€ sum would allow me to earn roughly 500€ next year as interests. This is the tax-free amount, that one person could gain from interests a year. Anything above that is taxed.

Another goal for this year is to prepare myself for entry into the stock market. I do not plan to enter it this year, but there is a high chance of stock market crash in the foreseeable future. If this is the case, I would want to be ready to enter it at that moment. If the market does not crash, I will continue investing only in peer to peer lending while slowly growing the stock market entry sum.

Some might question why hold money for the stock market if I am not investing it? Well, most of that sum is almost ready to invest already and currently is used as my emergency fund, which is probably too big. By the until the end of 2018, I saved mostly to have an emergency fund, but right now, it could support me for over 10 months. At that moment I wanted to be just safe, in case anything bad happens. After all, in 2018 I was also fired from my job, not for my own fault or reasons that I could control. I wanted to feel safe. I believe that there shouldn’t be an issue to find a new job in about 6 months max. 2-3 months is probably a realistic term. After all, last time it took me 3-4 months when I wasn’t even looking for one 🙂 (the wonders of working in IT).

So, for the time being, I will continue holding my emergency fund and slowly growing it.

Goals for 2020:

  • Grow my peer to peer portfolio to at least 9000€
  • Have income from peer to peer be greater than 500€ at the end of the year.
  • If possible diversify between investment types other than peer to peer by at least 10%.

If everything goes well, I should reach 500€ sum even without additional investments through 2020. Most likely this amount will be bigger, given that I plan to continue adding funds. But it is still a symbolic amount that I want to reach.

As for diversification, I still want to diversify at least part of my portfolio. It would still be relatively risky investments, like stocks or maybe even crypto. And yes I know, a lot of people hate crypto, but this is one technology, that I will be diving in a bit deeper anyways, simply because knowing enough about it might be useful in my career. If at some point I understand it more than basic knowledge, I will think about it’s potential.

Have anything to add? Feel free to drop a comment! Also, check my current portfolio to check how I am doing. Also, don’t forget to share your investment goals.

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4 thoughts on “My investment goals for the upcoming future.
  1. HonestFIRE

    Interesting read about timing the stock market crash: https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-cost-averaging/

    If you reach 4.5k portfolio are you expecting interest+principal to be 500 Eur? Wouldn’t it be more sensible to count expected interest?

    • Eimantas

      I am specifically not trying to time the market, but rather enter it if the opportunity arises. I know that time in the market always beats timing the market, but as of right now, I just don’t have enough cash to be in the stock market to counter fees and make it worthwhile.

      As for 500€ thats just a symbolic objective that I want to go over. I do expect to earn more than 500 euros next year from interest alone, but it will be highly dependant on how much I invest.

  2. Financial Nordic

    As you come from Baltics, you know something about P2P-investing! 😉
    Good goals!

    • Eimantas

      p2p seems like a better alternative in the Baltics as it requires minimal capital to enter and profits seem to be great when compared to the more traditional stock market. Although that’s not a hard rule, because, after the 2018 Christmas correction, it would have been more profitable owning stocks for at least 6 months than investing in p2p.

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