|United States Dollar - USD|
|70,000 - 79,999|
|Self-employed professional and father of one, living in Jamaica. Started late in my Personal Finance life; Wised up at age 30; Made some smart moves in my 30s and built a decent financial foundation centred around a very healthy savings rate, debt avoidance and a long - term focus on wealth creation. The plan all along was to achieve an acceptable level of Financial Independence (quantitatively defined by me for me as USD 1.0 million in savings and investments net of ALL liabilities) by the time I got to age 45 with the possibility of taking an extended career break then, or, at least, downshifting with the ultimate aim of being able to retire by - at the latest - age 55.
It all came unstuck at age 40: Bit off rather more than I could chew with my involvement (financial and otherwise) in Community Building, neglected my Practice, blew through my savings and went into accelerated reversal mode for all of 2012 and 2013. Now I am back - swimming against the tide.
|Best Financial Decision|
|Buying ridiculously under-priced, rock-solid companies during the Great Recession and doubling down as everyone fled for the hills and the Jamaican Stock Market went into an extended slump lasting the better part of six years.|
|Worst Financial Decision|
|Departing from my Financial Plan, abandoning my Practice and pouring all my personal savings and time into Community Development during the period 2012 - 13. It was a noble idea and a worthy cause, but the execution was poor and the venture, ultimately, unsustainable.|
|Current Investing Strategy|
|1. Save / invest at least 40% of net job income. 2. Put aside a fixed dollar amount (currently the rough equivalent of about USD 1,200) each month for the purchase of individual stocks for my buy-and-hold Account. 3. Maintain a second individual stocks Account for opportunistic trading: Buy when there is an atmosphere of general despair (2008-10), hold steady when the market meanders (2012-14) and sell when there is an atmosphere of general exuberance (2015-16). 4. Hedge against currency depreciation by incrementally increasing USD holdings. 5. Maintain a three-tiered Personal Finance Cushion to deal with :(i) cyclical negative income - expenditure gaps;(ii) Major unplanned life events which elevate expenses, and temporary income disruption; (iii) Loss of income due to ill-health or disqualification; The first is held in a (money market) savings account, the other two in easily accessible, higher yielding fixed income funds. 6. Build passive income through solid dividend-paying common stocks, preference shares, bonds and fixed income funds. The aim is to get to 100% of living expenses by age 50 in 2021. 7.Use ALL common stock dividends to purchase more common stocks and use preference share dividends to add to fixed income funds.|
|2016 Goals instead: 1. Increase top-line job revenue by 11.27% over 2015.
2. Achieve Savings & Investment (S&I) rate of at least 45% of net income.
3.Attain passive income of at least $21.5k and no less than 43% of spending for the year.
4.Build USD holdings (listed under "ANNUITIES") to at least $90k.
5.Build primary liquidity ("CASH") to J$ 2.0M (current FX rate US$1: J$123).
6. Build Secondary liquidity to J$2.0M (40% of eventual target).
7. Build Social Enterprise Fund ("OTHER REAL ESTATE") to at least J$ 11.5M (minus any money actually spent towards this venture) by continuing to liquidate "trading stocks" when the opportunity arises.
8.Purchase farm land from Social Enterprise Fund.
9. Actually start farming.
10. Write Will.
11.Write detailed "Statement of Affairs".
12.Write letter of instructions.
13.Have Trust Deed(s) drafted?
14. With the co-operation of the Jamaican Stock Market , attain NW of US$750k by my 45th Birthday this summer.
15.Attain NW of at least US$775k by December 31.|
|My extended Net worth goals(US$):
750k by 45th Birthday - summer of 2016; Achieved 5 months late - January 2017.
1.0M by 47th Birthday - 2018;
2.0M by 52nd Birthday - 2023;
3.0M and Full Financial Independence and "Retirement" by 55th Birthday - 2026.
NOTE: I do not include personal property, my motor vehicle, my home - all fully paid for - or my Daughter's Education Plan in my measure of net worth. In addition, the values assigned to Stocks and any hard assets reflect a downward adjustment for anticipated liquidation costs. My measure of Net Worth, therefore, is my best conservative estimate of the "pocketable" net cash value of my investments. I refer to it as my Net Realisable Investment Value (NRIV).