Tuesday, January 12, 2010

2010 and beyond

I find it cliche to sit and discuss our New Year's resolutions. Let's all be honest here, you know that by February you will all have broken all your resolutions. Okay, maybe March.

I would suggest it is far more fruitful to set a goal instead of a resolution. A resolution is like a wish, it is a dream.

A goal should be SMART -


For 2010 and beyond, it is necessary to start setting SMART goals for your financial future. I would suggest we set a meeting to rediscover your direction heading into another year.

If we have not met for over a year, it is time to revisit what is available and what options are available for your existing properties. For people who are closing a new home purchase this year, we should get together and discuss the exciting financing options available (Lilianne and I have developed a HELOC solution you should learn about).

I have personally adopted the philosophy of "NEVER AGAIN, again". In my short time in the working force (relatively speaking), I have been through two major stock market crashes - tech bubble in 2000 and the global financing meltdown 2008. I have seen my portfolio twice drop by healthy double digit numbers inside of 10 years.

For 2010 and beyond, one of my goals is to follow the investing rules of the Oracle from Omaha - Warren Buffett -
#1 - Never lose your principal
#2 - Always follow rule number 1

I am taking even more control of my personal finances, specifically my paper assets. I have been reading Jason Kelly and Derek Foster again, listening to their philosophies and beliefs in the paper world. Mr Foster is speaking in Kanata and Stittsville in January, might be something to check out - click here for details.

With my 25 doors in real estate (soon to grow to over 30), I am focussing on the interest rates, watching the US unemployment rates and bond markets. I am still in a buying mode, but I have become highly cognizant of the difficults in the appraisal market right now.

Any money I have with professional advisors will be under greater scrutiny from now on. I know that nobody cares about my money more than I do, so I have to keep my focus on regular communication with my trusted advisor.

My new focus is on cash flow investments as cash in my pocket is better than cash in someone elses. I would rather make a monthly income, rather than bet on an equity increase.

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