Thursday, September 29, 2011

Listing out the Goals of the Trading Account. Phase 2

While I do not have solid data to estimate how I will do in the future I have to start with as close a guess as I can and then as trades and data come in I can refine my future profit estimates...

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Wow. So yeah there you have it. The Model Portfolio will "fail". My current estimates show that I cannot meet my goal of generating income to cover bills for the Model Family, with my current level of contributions, within 15 years. I placed the word fail in quotes because as I discussed in the video, is it really failure? I am not only talking about dollar goals either.

There is something to be said for how one lives their life. I'm a big believer in motivational thinking. I could go off on entire blog and video series on the topic... and I probably will. For now though think about this...
As we grow up to becoming an adult we have teachers, guides, and lessons that we learn to shape who we are as a person. These impact our lives and shape our personalities and who we are as a child changing into a teenager into an adult.
Why do some believe that process stops when you become an adult? The process or how our thoughts and focus and what we spend our time doing altering and defining who we are as people.

More specifically to how this relates to the Model Portfolio: when we allow ourselves to slip into a mindset of life being...
1: Go to work.
2: Work.
3: Come home and get ready for step 1 tomorrow.
Then of course our personality and belief system will eventually shift towards that. It eventually becomes automatic. Sub-conscious. We then fall into what I describe in the video where 15 years from now I ask myself what would have happened if I tried... then get back to work.

The Model Portfolio will bring in benefits to my life beyond what cannot be measured in numbers with % or $.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others.
I am not a financial planner, financial adviser, accountant, or tax advisor. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets


  1. You can always start a side business or use leverage. An example of leverage is a REIT that yields higher the the payment on LOC or loan. Put all the REIT yield on the debt until it is repayed. You then own your shares in the REIT without using your own money.

  2. I don't know if I would want the risk of a carry trade like that. With conservative REITs right now paying 5%-8% I am not sure if a regular loan could cover that. The shares would have to be in a non retirement account so I could take the income to pay off the loan so taxes would further eat into that spread. But it is an idea.

    I have a few ideas and side things going on outside of the Model Portfolio. So personally I am pretty sure I will be retired in 15 years. But for the purpose of just the Model Portfolio for my Model Family... I'll need to get creative. I have a few ideas I am contemplating.

  3. man, this is great entry, it really quantifies many of the experiences i've had to this point with trying to make my way with a less than 25 thousand dollar account. Keep up the good work.

  4. I'm thinking too, this is no where near a get rich plan, but more of a wealth preservation and management plan.

  5. Exactly lambdog. People have dreams of making millions of dollars and when they find out they cant they give up. But what is wrong with making a little extra to live comfortably?