Tuesday, January 3, 2023
I might just be the most boring man in America.
While millions of others were drinking and dancing to usher in the New Year, my wife and I took part in our longstanding yearly ritual:
At 6 p.m. every New Year’s Eve, we sit by the fire, have some wine, and review our accomplishments for the year.
Then it’s time to look ahead and draft what we call our “Investment Action Plan.”
You see, without a written plan, it’s easy to fall prey to all the headlines out there featuring doomsday content like the war in Europe, inflation, and a looming recession.
That’s why, in this two-part series, I want to show you how to write your own market-crushing investment plan — one that will set you up for a profitable 2023.
The media headlines in 2023 are likely to be negative and alarmist.
Don’t get me wrong. I know we face challenges — we always have.
But speaking as someone with forty years of experience analyzing and investing in the markets, it’s much easier to ignore these headlines — all the noise — if you have a written plan, one you can come back to time and again for guidance.
Without this plan, investors become susceptible to panic-selling and greed-centric buying, based solely on Wall Street’s hype machine. But not us. Not in 2023.
When it comes to drafting an action plan, I once again speak from experience.
When my wife and I married nearly thirty years ago, I started writing down our general plans each year, including our financial and investing goals.
And each New Year’s Eve, we pour a nice glass of wine, sit by the fire, and review the plan to mark our successes and identify areas for improvement. Then, before heading out for dinner, we set up a new action plan that we’ll review in a year’s time.
What began as a fun little ritual has turned into a positive financial habit, the kind that can help you attain financial freedom, no matter what the market throws your way.
Think of this plan as a kind of map. And keep in mind that, on any journey, using a map means you’re more likely to arrive at your intended destination safely, and on time.
There’s a simple reason an investment plan breeds success: just creating one — and being honest about your goals, notions about risk, and how much capital you have to work with — dramatically increases the odds of your success.
All that said, let’s run through what your investment action plan for 2023 (and beyond) may look like…
To start, you’ll need to:
1. Summarize Your Goals and Objectives
This section is critical, because your goals — how much money you’ll need and when you’ll need it by — influence every other part of your plan.
You might begin with a statement like, “I want to retire in twenty years, and I know I’ll need a net worth of at least two million dollars to make it happen.”
Your objectives might include near-term goals like saving for a home, or your child’s college education, and some longer-term goals like buying a vacation home or traveling abroad.
Next, you’ll need to…
2. Assess Your Feelings About Risk
Be honest about your risk tolerance. After all, the greatest investment plan in the world won’t work if you don’t stick to it.
If volatility freaks you out, lean towards investments that offer high average annual gains without the wild swings that are common with individual stocks. Exchange-traded funds, or ETFs, are a good option, here.
From here, you’ll need to…
3. Draw a Map
Goals are great. But you need to figure out how you’ll attain them. You need to identify how much you’ll be putting away today, tomorrow, and next year to stay on track.
Be sure to take advantage of all your options — for example, your employer might offer a company “match” through its 401(k). That’s free money you don’t want to pass up.
Finally, make sure you…
4. Start Now
Regardless of the details of your plan, make sure you start in 2023. This could be as simple as a specific goal or action, such as “I’m going to invest in quality technology stocks this year, ones with the potential to double my investment in less than five years.”
Additionally, ensure you identify other aspects of your plan, such as making better use of stop-losses to protect your profit potential, or setting a target return for your portfolio (e.g., “I want to achieve double the returns of the S&P 500!).
Let me be candid. If this sounds like a lot of work, it is. After all, we’re trying to achieve financial freedom, which, short of winning the lottery, doesn’t happen overnight.
However, let me make a suggestion that can help…
Consider subscribing to my monthly tech-centric newsletter, Digital Fortunes.
Through this service, you’ll essentially be “hiring” me, and following my investment action plan that can potentially produce a steady stream of double- and triple-digit winners.
If you’re interested in learning more, click here to get started. Or you can always reach out to my team at (844) 575-7767. They can answer any questions you have.
I want to make 2023 your most profitable year yet. In fact, in Part Two of this series (coming on Friday), I’ll unveil three promising investment ideas for you. So stay tuned!