I'll start by saying that I like to have a longer outlook than just 1 year since I plan on living beyond 2021.
Obviously, this implies my financial goals include saving and investing.
Fortunately, I don't need to buy anything. I don't need a job. I don't need to get any new major assets or open any new accounts. I'm fairly responsible and I like keeping a monthly budget with a much further outlook including retirement, so in my case, there isn't a lot of room for improvement. I pretty much have to maintain an already well-oiled machine that is on track.
In Korea, we have something called IRP (RRSP in Canada) and ISA (TFSA in Canada). The IRP is to supplement the national pension/company pension and is most efficient if used for retirement. The ISA is tax reduced if left alone long enough. I've had no problem reaching my limit for both for several years and am all caught up. I plan to keep it up.
The nice thing about these is you can invest in various funds and ETFs listed on the Korean Exchange. These include foreign funds and pretty much any non-leveraged fund.
My Investment Strategy
I'm a salaryman and as a salaryman, I need to save some of my paycheck or I'm screwed when I lose my job or retire. I have a good job and I like it so I'm not looking to upgrade.
However, like everyone else, I want to first be secure and second I want more money.
I have a good job that is fairly secure (since I didn't get laid off in 2020, that's a good sign). So I've already mentioned the most important thing after keeping one's job - retirement planning.
Just keep filling up the average middle-class government stuff offered in pretty much every developed country if you want to retire comfortably at 65. For those who don't know, go speak to a financial planner at the bank, or just buy a book on personal finance.
In essence, 20-30 years should do it depending on when you start. You can subtract time if your investments perform well if you have a company pension if you save even more if you have stock options, etc.
Actually, I have all that stuff and more.
Specific Assets
Asides from my job, I have a moderately successful business. I want it to grow obviously. I've already invested enough money. I need to invest more time to see it grow more, but I think I will do well. If I do very well, I will need to hire help or quit my day job.
I also have 2 types of investment accounts 1 in Korea and 1 in Canada. I've built ETF and stock portfolios in both countries to supplement my various government savings schemes. Specifically, I like lower risk income stuff because I don't need high-risk FANGs or Nasdaq like stuff.
That brings me to crypto, I have a lot and this is where I put my high-risk stuff.
Crypto
I have a lot of BTC and ETH. Like everyone else, I put it in de-fi in 2020 to make crypto from crypto and I plan to continue. I guess it is riskier than leaving it in cold storage, but as I said, I'm good either way.
I also have a few shitcoins and de-fi coins. I don't really want to shill these so I'll keep my lips closed.
Recently when it comes to buying more crypto, I'm just buying stable coins and loaning them in crypto banks since the crypto I want to invest in is way above my price target. Also, it's probably less risky. While it's easy to find 10% earnings on USDT or whatever, I don't mind holding stable coins.
I avoid peer to peer lending because I'd rather just have someone else do it and give them a cut. I think the key with de-fi is don't get too greedy. I avoid schemes that make me buy their coin to earn more, especially if it isn't a stable coin.
Preferred Investment
My preferred investments in order are:
- Government Investment Schemes - That's right call them what you want to, but tax advantage accounts are the best place to start. Decent financial advisors from any bank in the country can explain them to you. They also don't let you invest in the riskiest stuff. If you plan long term, these are the best. Maxing them should be your first goal assuming you have a job and live in a decent country that somewhat looks after its citizens.
- ETFs - I do get most of these from the government investment schemes, but I have more because I want to retire early and I make more than I can spend (first world problems am I right?). I like these especially for markets where I don't live or confusing assets like options and futures because I don't want to spend all my time day trading. I also tend to do this for small caps and growth stocks simply because I'm lazy.
- Stocks - I invest in mostly income stocks that pay dividends or bluechip stuff. I just don't want to have to keep my finger on the trigger or buy and sell more than I have to even though trades are free for the accounts I use (we pay a tax of like 0.15% which is being lowered). I also invest in fun stuff, but I think of that more as speculating or gambling and don't consider it as part of a financial plan any more than playing the lotto.
- Crypto - I already mentioned this.
- My business - I already mentioned this, but heck I'll include Hive even though I barely blog and the value currently sucks. Things could change.
- Government Savings Accounts - I have one. The one here pays like 3% which is great now, but it has strict limits. I guess it's good if I need cash. I don't keep a lot in the bank, but I have ways of getting income if I lose my job so I'm not too worried.
How to use and grow my stake
The above explains how to grow my stake - earn - save - interest - invest. I haven't really thought about how I'll use it. In any case, I think this question is aimed at Hive. For that, I sold out a while ago when I lost a lot of confidence to get BTC. It was trading for around 10X in BTC prices. BTC is now 3X higher and it's now 50% lower. I'm not complaining, lol.
Prediction for the price of Hive and LEO in 2021
Hive: It will be between 15 and 5 cents, possibly lower. In terms of satoshis between 500 to 100. If it goes below 100 satoshis, that's sad.
Leo: I don't know, and I don't care. I don't even know what it worth now. I guess it will probably go lower in terms of satoshi because BTC is probably better. In terms of $, who knows? Up a little, I guess.
This blog was inspired by @theycallmedan's initiative for #hive about #financialgoals2021 on #leofinance supported by @steem.leo
Posted Using LeoFinance Beta
sounds good, but why do you considre crypto (which is probably high portion BTC,ETH) as high Risk? Sure the venture stuff which is merly an idea collecting money is risky but what is the difference between Bitcoin and Deutsche Bank?
If you put money in the bank you will certainly lose to $ inflation even in high-interest savings. That's not investing. That's saving.
I don't really consider BTC/ETH as the same since I'm speculating on the price increases relative to the $ (it also pays higher interest than inflation).
The reason I think it is a risky asset is because of regulatory issues and if it's not in my cold wallet someone could steal it and the exchanges aren't insured to the same extent as to say NYSE (I like earning interest). BTC and ETH are fairly safe (by far the majority of my holdings), and I avoid scams or bad ideas, ie. shitcoins. that will either die off naturally (too many to list) or be regulated out of existence due to their dodgy nature (xrp).
I do see crypto going up, up, up and it's more volatile and better than say S&P500, but I think it's higher risk than the regular stock market because it is an emerging asset class. In other words, we don't know the risk so we cannot safely assess the risk. Therefore, I label it as high risk and speculative asset class. I think it's going to be safe.
Posted Using LeoFinance Beta
You sound like you're well diversified and set, I assume you enjoy your job, which is a nice place to be in!
I've got a reasonable UK Teacher's Pension in place which will just about meet my basic needs assuming I've got a property owned outright, it's certainly a good place to be in!
And crypto in case the government collapses.
There is a significant risk with relying on government backed pensions in the UK - ageing populations, combined with increasing debt and inflation means it is highly unlikely they will be able to meet their commitments in the future.
Things could go really wrong!
Posted Using LeoFinance Beta
The teacher's pension is a great thing to have, I assume it's defined benefits. The risk of losing it is low since it would result in the collapse of the government. My company pension won't be nearly as good. They just stash around 10% a month in a fund of my choice and I can go for an annuity later. It's wrapped up in the IRP.
Crypto may be good if the government collapses. It's definitely better than nothing, but I guess it depends on the extent of the collapse. If it is limited to finance and the dollar/GBP, sure. However, that could lead to future collapse which wouldn't be good for anyone. I do think it's a great hedge against inflation and overspending which is almost certain.
I think the main public pensions are definitely at risk. In Korea the birthrate is absurdly low and combined with maintaining public workers pensions, I don't think the government can afford to make up the gap which will start to happen in the 2040s (I am not eligible until then). You are right to not want to rely on this which is why I just max everything out. By government schemes, I just mean tax savings ones, they can't touch IRP or ISA since those are registered in my name and the only assistance is in structuring and not taxing it. I guess if things get bad enough maybe they will tax it.
Things can go really wrong and they probably will. Waking up to pictures of armed protestors storming congress is never a positive sign.
Posted Using LeoFinance Beta
This is the most different post for a goals in 2021. Government Investment Schemes ?!? I don't know man.. By the way your prediction of the HIVE token price is terrible.
I sold most of my Hive in May 2020 for around 3000 sat or 30 cents. It's now worth like 11 cents or 400 sat. In my wildest dreams, I didn't think it would go below 750. I just picked +/- 50% for $ and assume BTC will keep destroying Hive.
Posted Using LeoFinance Beta
Interesting opinion.
Many Hiveans do believe that the price will hit $1 this year.
Some of them as @iliyan90 believe that in long term the coin value will be hundreds...
I just saw that even your username includes "skeptic" so..;)
1$ in 2021 is not an opinion grounded in reality, but whatever. Back to about 30 cents would get me excitied if it stayed there for over 6 weeks.
Good luck with your goals, @abitcoinskeptic.
Posted Using LeoFinance Beta
Thank you kindly =) The past 6 months have been very kind to me amd my goals.
Congratulations @abitcoinskeptic! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPDo not miss the last post from @hivebuzz:
Sounds like you have good insight into investments in your region, preparing for pension one has many surprises along the way so good luck @abitcoinskeptic.
You appear to be content that is reassuring, have a wonderful weekend.
Thanks! Yeah, I figure a lot can happen before the normal retirement age of 65-70 given that I'm only 37. However, the more I plan and save, the less I'll need to worry about it. I've had a mindset to retire around 55 since I was about 10 years old and my grandfather retired around that age. However, just like him, I probably won't want to completely stop working, I just want to stop worrying.