Investment Plan

As a Dividend Income Investor, I believe that having a solid long term investment plan is essential in achieving my personal goals. Overall, my long term goal is to create an increasing stream of tax-free dividend income that would supplement my retirement income.

Everybody’s investment plan is different

In general, investors want to own assets that can easily be converted back into cash. In addition, many investors’ primary investment goals are:

  • preservation of capital
  • income, and
  • growth (in terms of either share price or dividends)

Of course, your long term goals and corresponding investment plan are likely to be different from mine.

Your investment return goals very much depend not only on your investment outlook but also on many different personal factors. Just ask yourself some frank questions, such as:

  • where would you like to be with your finances in ten years from now, or maybe even twenty? Thirty?
  • what are your current and future sources of income and wealth?
  • what assets do you want to invest in?
  • what kind of returns are you after?
  • how much time do you have?
  • when do you want to retire, and so on?

These types of questions will assist you in considering whether a dividend income growth plan may be suitable for your own purposes. Always seek advice when in doubt.

Once you have set your long term goals in a formal investment plan, break them down in increments of weekly, monthly and yearly goals. Stay focused on them and don’t worry (too much) what’s happening around you.

Keep your goals simple

Returning to my goals and investment plan, with my initial time horizon, risk tolerance and retirement objectives in mind, there are several points that I need to cover, including:

What next?


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