Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: hrse Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 52  
Subject: Re: Aggressiveness Date: 3/22/2007 2:17 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
I guess I just don't really know what's a smart way to plan for so many different eventualities.

On a piece of paper in the first column write down the names of your Investment Assets. I only use account names.

Across the top write 5 yrs ago, 1 yr ago, and current.

Place the values in the proper cells and calculate your CAGR.

NOTE: Right or wrong when I do this I do not recalculate based on deposits/withdraws. This puts my 401k at a really high CAGR, but it goes on the assumption that my saving level would be consistent. If I want to increase CAGR I can either save more or invest better.

Figure out what investments are for what goals, and when you need to spend those investments. For example I have some cash accounts set up with Scottrade for my daughters' four weddings. I have an idea of how much I want to spend on each, and an estimate on when they will be married. (hoping the oldest does not get married at 22 which is only 10 years from now)

You can then figure out what your CAGR needs to be. If it falls short, you need to save more or reset your expectations.

The rule your retirement service has all the spreadsheets you need. Personally I have not done this exercise in a while and I know I am behind. Our goal is to spend less and save more, while continuing to remove emotion from my investment actions.

Mark
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement