Investment target for 2010

Nothing much blog-worthy happening so I'll just list down some investment target. This actually has been swirling in my mind on occassions.

I had been actually thinking what is a 'comfortable' amount that IF my shares are able to generate annually, meant that I can 'somewhat' do without work.

That led me to think about people, as they rush past me to head to work. What is the average amount they are getting? What are the hours they are putting in for their pay? Of course, I am thinking about the average person, NOT some professional where they earn >$10k. After a while, I realized that the Average person doesnt earn astronomical figures, depending on their education standard. Basically if a person can get gross of $3.5k, its a very good amount. Most hover at $2k to $2.8k (university) unless they work at it long enough and got promoted.

The next question I thought about was given that over time, a person can get promoted and the salary increases accordingly, hence a fixed target over years is also not that viable... cos you dont expect a person to be earning say $2.5k for the rest of his/her life.

Then I thought about how many hours does an average person clock in for work. The maximum is up to 44hrs according to employment law. Then also there is the Gross Figure and the Nett Figure to consider. The Nett figure is more relevant cos that is the amount you get at the pay day. The cpf goes to the cpf account for investment in education, housing, gold, stocks, unit trusts etc.

After more thinking through, I realized that this is only the 2nd Official year of me actually investing in stocks. So I shouldnt be too worried at targeting for $30k annually. Last year, I didnt hit it also, got $24k. Its okay because that is extra $24k not through me putting hours at work. It doesnt mean that I didnt invest time and effort into investing, I did. It just meant a potential source of income.

YET cos I am still young, not some 70 year old retiree, hence I do have Many Many more years to live out, hence EVEN if my current investment can yield me a passive income, it is not enough over the LONG term to consider not working entirely. That would come maybe in another decade or so. A re-think after say another 5 years from now.

Also being young still, this period of 'fun employed' made me realize that I want to do some more stuff still. Also More Income is good. Helps to replenish the reserve, build up investment capital also. Hence the decision to get work. I will rethink this in about another 5 years to see what level of capital I had managed to build up then.
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So after all this think-through, I have decided to stick to $30k annual target. If I can hit near it, its good also. It would mean, I am going somewhere in terms of my judgement and maybe timing.

Currently $6.8k (purely stocks) I had let GREED get to me, cos during Jan, could have made $10k but didnt sell/act to realize then when mkt went down, quite a bit of gains evaporated. I had bought back some since then and currently not much upside. Through this though, I learnt A VALUABLE LESSON - IF ITS A GOOD ENOUGH AMOUNT, SELL TO GET IT IN THE POCKET FIRST. A bird in hand is worth 2 in the bush. Also given CAPITAL is always limited, I have to spread it among my counters for those that are somewhat 'cheaper' within my list of identified counters. Currently about 2/3 invested in terms of capital. 1/3 to wait for more opportunities and some sort of shares reserve. Dont want to dip into my living expenses reserve. It meant really have to limit the amount invested so as not to be too overinvested and stuff. Something to keep me occupied, not entirely but I am 'busy' as it is... with all the courses and errands, plus monitoring investment, exercise and outings.

1 thing I realized about myself is that I dont reward myself tangibly for achieving targets. I didnt exactly reward myself by buying something I REALLY wanted, last year. Usually for me, the achievement itself is reward enough... Hmm

So this year, as part of being GOOD to myself, IF I can hit $15k, I shall take out $1k to get stuff. SO far 3 things came to mind, give family a treat, buy an Oakley sunglass and a WII(guitar hero) Think should be able to squeeze them all in... I must learn to reward. Then if hit $30k, another $1k.
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The problem with me is that IF I am given $1k cash and told to spend it on something I really wanted to buy. I would really be at a loss to think of something I REALLY wanted. I guess this has partly to do with my financial discpline. I think of purchases in terms of Need and Want. The whole idea of 'deferring consumption' is important to achieve a balanced, healthy personal budget, also the basis for savings. Usually for Wants, I dont dwell on them, or keep deferring them until I dont really want them anymore.

Also I dont really have so much impulse. Even IF I do go a bit crazy at Marks and Spencer for their cookies, biscuits, it wont hit $1k in a single transaction. Guess I dont see the point of expensive 'toys' for adults.

I go for functionality and costs considerations. Asethetics maybe a bit. So if I really dont see how I can use the 'toy' in my daily routine, very high chance I wont buy or even if I do, it might become white elephant.

My I-touch is a semi-white elephant. It didnt replace my mp3 as it was expected to. Its only useful if I am out of home, have wireless to check my stocks. Also function as a calculator. Recently cos I got the Jap Kotoba, it became a tool for revising my Kanji. So I am trying now to incorportate it more into my routine. The monthly calendar for keeping track of menses is also good, same for currency conversion. These are my uses so far for it. Mainly functionality.

Suddenly my PSP became a bit more un-used. Its been quite a long while since I used it. I do carry it but not sure if still charged... I just favour more of listening to mp3/radio using walkman hp on long bus rides back home from town.

Guess I got my mp3, psp, i-touch covered. Have a laptop still functioning, have tv, have ps2, have ps1, have dvd player, have sling bags, backpacks, have 2 pairs of shoes, 2 pairs of slippers, got jeans, got t-shirts... even some work pants and working tops, have guitar, have watch, spectacles, contacts. Somehow when I list these all out, dont see much of anything else I want. Maybe when certain things give out, then have to get replacement but I dont really feel compelled to buy anything else. Space is a consideration too.

And perhaps the main reason why I have problem spending that $1k is this. The things I really want are what that $1k cant buy. Things like freedom, things like having the time to look at the afternoon blue skies, things like feeling the wind in my face, things like not having to rush. I think about how to make that $1k multiply itself so that those can become reality. Then end up, I dont feel like spending that $1k. I rather it work hard for me, generating money.

Yet now knowing myself, I dont want to end up as a Scrooge or 守财奴. So I also have to LEARN how to enjoy the gains. I dont want to work and save hard, deprive myself of pleasures, then die and money goes to someone else. That is SO sad and typical of our parents and theirs generation. I am so not going down that path.

Enough said, so until I hit my target, I will be thinking about how to get there and Only then think about how to spend that $1k.