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How Did My Goals for 2022 Go?

Byadmin

Exactly a year ago, I wrote my goals for 2022.

  • Goal #1: Being Fully and Efficiently Invested
  • Goal #2: To Make From Investments What I Make From My Business
  • Goal #3: Rate of Return Across My Portfolio

And some other goals from that post were:

  • I should regularly invest my business profits as a habit by the end of the year.
  • I should have a long-term plan and measure myself against that plan.
  • By the end of 2022, I should be 10% on the way to achieving my long-term goal.
  • Within 3 years, I should achieve 33% of my long-term investment income goal.
  • And within 5 years, I should achieve 75% of my long-term investment income goal.

So how do I stack up against those goals?

Goal #1: Being Fully and Efficiently Invested

This has been a struggle. But I am pretty happy with where I am. I am about 75% invested, with 25% sitting in cash. Yes, I am not fully invested. But I am mostly invested. Which is a lot better than being completely uninvested.

Goal #2: To Make From Investments What I Make From My Business

This was a long-term goal.

  • By the end of 2022, I should be 10% on the way to achieving my long-term goal.
  • I should achieve 33% of my long-term investment income goal within three years.
  • And within five years, I should achieve 75% of my long-term investment income goal.

I make about 11% of my long-term goal in returns each year. So I can call this goal a success so far.

Goal #3: Rate of Return Across My Portfolio

I was aiming for an 8% rate of return. I am currently averaging about 5%. This is still OK to me. Of course, the rate of inflation is around 5%, so I am just treading water. But I decided to trade off a higher rate of return for a less volatile return. This was a conscious choice I made in the past few months. I shed some higher-yielding ETFs containing riskier assets that might suffer in an economic downturn. It may not have been a wise decision yet, but I don’t mind the lower volatility.

Conclusion

Overall, I’m fairly happy with my progress. It’s a tough environment to invest in. And I’m walking cautiously and trying not to make too many mistakes. But I am mostly invested, and I’m happy with my investments. If you look at my overall return, I’m actually “up” since starting this project. It might be only a small, single-digit return. But a positive return is better than a negative one, or no return.

In the next post, I’ll write my goals for 2023. With the benefit of one additional year of insight since my 2022 goals were set.

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