Thread: Would you mind looking over my financial plan? Thank you.

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  1. #1
    Bennyinsar
    Guest

    Default Would you mind looking over my financial plan? Thank you.

    I've been browsing the forums for a week or so - great info here. Much appreciated.

    Now, I've been pretty broke my entire life(I'm 22). I'm now in a position where I have no bills, and I want to be as smart as possible with this opportunity. Ideally, I'd like to have 50k saved by the time I graduate college (3.5 years).

    Current plan:
    Regular monthly Expenses:

    Gas: $75
    Food: $100
    Supps:$100

    Regular annual expenses:
    Car maintenance: ~$500

    Debts:
    $1,300 owed to credit card


    Average expenditure per month: $325


    Take home Income: ~$1700/month. (Should be closer to 3k by the end of the year, but can't be sure)

    So my plan:
    Put 20% in portfolio fund immediately. ($340) until credit card is paid off (1-2months)

    Then, 50% in portfolio immediately ($850/mo)

    30% in accessible savings account ($510/mo)

    20% spending ($340).
  2. #2

    Default

    Assuming zero percent gain: Portfolio will be worth $24,650
    Spending cushion account (assuming I don't need to access it) = $14,760


    From there, my expenses and income will go up considerably, to the point where I can't plan past that date.

    If I can average an 8% annual rate of return and increase my contribution to 1k/month, I should have 50k in 3.5 years.
  3. #3
    blorsergo
    Guest

    Default

    "The first casualty of conflict is the plan". Attributed to a WW1 general but true throughout the ages.
    But my take is.... Hey your young, take a shot. At least you have a plan.
    Here are some thoughts i might have. If you have never traded or invested you should spend some time in a real time simulator platform to learn how things work.
    Planning on a certain % is how a fee based financial advaer thinks. Once he hits the target that wins that cruise to the Bahamas he backs off on risk and plays to not lose. A real trader takes advantage of opportunity wherever/whenever it is. Take what you can and give nothin back. Maybe one year your up 50% maybe the next year your down 5%.
    Dam phone. I hit the post button so now i have 15 minutes to edit and finish. I'll split the post so my edit doesn't expire.
  4. #4

    Default

    Ar first your acct will be very small. It is very difficult to actively trade small sums and come out ahead after fees. Not saying it can't be done. Read though my thread on small/mid cap trading to see one way of playing with small amounts of capital. The goal is to grow a small acct exponentially. Since i started the thread i'm up almost 40%. Was closing in on 50 but the last 2 days were not kind.
    i could go on and probably will later but its been a long day so i'll cut out for now. Besides, posting from my phone is a pain.
  5. #5

    Default

    Thanks AC, appreciate the thoughtful response. I'm using robin hood (zero fees) and I'm only gonna trade in there if I can make significant gains in TOS. I'm up 3.5% over the last two weeks, so we'll see if my strategy is valid or if I just got lucky a few times. I'll read that thread. thanks again.

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