Stocks investment methodology I follow is not to get rich overnight by gambling my money in penny stocks nor am I into day trading. I believe in investing in quality companies with good fundamentals which meet my criteria I have set and also I can explain it to someone why I am buying a particular stock which I plan to describe in future blog posts.
I have to work for atleast 30+ years if I plan to retire as per the normal retirement age in Sweden and hence my plan to retire earlier by making sure that I could contribute to my family expenses without being dependent on my monthly salary which leads to me having more time and the freedom to do what I love the most and to support my family even more when my kids grow up.
Every year I reduce from my retirement age is an achievement. In India we hang up our shoes at 60 as against 65 in Sweden and there are discussions that it may further be extended to 67+ by the time I retire. Even though its possible to start taking out certain part of the pension earlier when you turn 55+ but it does have a major impact how much you get, hence this plan to be financially independent and to retire early.
When to Start : The earlier you start planning about your retirement or financial independence the better as you can have more in your kitty and also take on more calculated risks at an younger age than later.
Timing the Market vs Time in the Market: When I started my stock investment journey in the year 2014 people discouraged me not to enter the market by pointing out that there was an imminent market crash on the cards considering that we had been in a bull market since March 2009 and asked me to wait until the next market crash. That is when I started researching if the market is going to crash again and started to understand that its not timing of the market but the time in the market that mattered hence started my stock investment journey instead on waiting for another market crash.
Below are the screenshots from one of my portfolios , if I wad I tried my luck to time the market and gotten it wrong then I could have potentially lost a good chunk of money like below in a matter of months and could have been devastating.
Instead tried the Time in market and have averaged an 18% return in the last 5 years as below. I plan to write more about my failures I have had in the journey as those are more valuable insights to understand than the successes I had. Also I plan to write about my ongoing investment journey on a regular basis.
I have to work for atleast 30+ years if I plan to retire as per the normal retirement age in Sweden and hence my plan to retire earlier by making sure that I could contribute to my family expenses without being dependent on my monthly salary which leads to me having more time and the freedom to do what I love the most and to support my family even more when my kids grow up.
Every year I reduce from my retirement age is an achievement. In India we hang up our shoes at 60 as against 65 in Sweden and there are discussions that it may further be extended to 67+ by the time I retire. Even though its possible to start taking out certain part of the pension earlier when you turn 55+ but it does have a major impact how much you get, hence this plan to be financially independent and to retire early.
When to Start : The earlier you start planning about your retirement or financial independence the better as you can have more in your kitty and also take on more calculated risks at an younger age than later.
Timing the Market vs Time in the Market: When I started my stock investment journey in the year 2014 people discouraged me not to enter the market by pointing out that there was an imminent market crash on the cards considering that we had been in a bull market since March 2009 and asked me to wait until the next market crash. That is when I started researching if the market is going to crash again and started to understand that its not timing of the market but the time in the market that mattered hence started my stock investment journey instead on waiting for another market crash.
Below are the screenshots from one of my portfolios , if I wad I tried my luck to time the market and gotten it wrong then I could have potentially lost a good chunk of money like below in a matter of months and could have been devastating.
In my next post I will show how the portfolio has developed since it bottomed in December, if I had panicked and sold my holding would I have missed the upturn ? how has it developed ? Read my next post for answers :)
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