The End Goal

“Formal education will make you a living; self education will make you a fortune”
-Jim Rohn

10 Years from now

Ten years from now the goal are: to be doing whatever I please, while having the passive income to sustain my living expenses and hobbies, to have a net asset value of 10,000,000 Canadian dollars, and to be consistently gaining value.

The way

The only way to get there is to keep learning, living below my means and exploring new streams of income. The current methods of income I employ, aside from working, are investments in stocks, real estate (referred to from here on as RE), peer-to-peer lending (referred to from here on as p2p lending ), and cryptocurrency (referred to as crypto from here on).

By diversifying into different fields the reliance on any individual field is decreased while being exposed to market movements that may or may not be correlated. The continued investment of earned income into stocks are done to earn a 25% growth per year, with a variety of speculative, growth, and dividend stocks. Real estate investments are used for appreciation of real estate prices, as well as generation of cashflow through rental properties to further expand my real estate portfolio. Crypto and p2p lending are explorations into new and promising fields which pose more risk and offer higher rewards.

To attain 25% growth per year in conventional stocks, the methods used will be the long term following of key companies, entering positions at lower-than-calculated prices, and exiting at uncomfortably high prices. To do this, stock knowledge, risk tolerance, and technical analysis needs to be cultivated. Under the right market conditions large gains can be made by just buying and holding, however, even in a bull market pull backs are common and the exiting of a position near the start of the pull back, with buying back of the stock during the pullback at lower and lower prices will effectively increase the amount of potential gain relative to starting capital.

Real estate investment growth can only be done in two ways, charging higher rent, or owning more properties. In order to charge higher rent, the market conditions have to be right, since no individual controls the market, the second method will be used to grow RE. Two conditions must be met in order to own more RE, available credit, and cash for down payment. Credit must be built through on time paying of bills, use of credit cards, and constant maintenance of credit score, while down payments must be saved through living below my means and by taking a portion of excess profits from other income streams if the situation allows for it (EX. if stocks return 60%).

Crypto, p2p lending, and future speculative investments will be done on a “can afford to lose” basis. The majority of capital will be allocated elsewhere while a small initial amount will be used for speculation. Like RE down payments, if the right situation allows, some profits from other income streams may be used to fuel further / faster speculative investment growth.