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Financial Goals 2021

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@travelwritemoney
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Thanks to @theycallmedan for starting the conversation on Financial Goals for 2021.

The questions asked are:

  • Which is going to be your investment strategy for 2021?
  • Do you have any specific assets that you want to invest in?
  • Preferred Investment? Crypto, Real State, Commodities, Stocks?
  • Do you have a plan or a set of goals on how to use and grow your stake?

Which is going to be your investment strategy for 2021?

Our strategy for 2021 will be a continuation of the 2020 strategy, which is to buy and hold through dollar cost averaging with the ultimate goal of increasing our net worth. Although, I must admit that we failed to keep to the principle in 2020. We were heavily invested in MCO and CRO after the market crash in March. This allowed us to carry the gains over to our BTC holdings.

Our strategy will require alternate buys of specific assets every paycheck rather than proportional buys of multiple assets. In other words, we will buy a set quantity of one asset one paycheck, and the same quantity of another asset the next paycheck. It costs less in fees to do it this way than to buy half of one and half of the other each paycheck.

At the same time, we are in the process of eliminating high-interest debt, which has been a drag on the net worth increase. We are down to 16% credit utilization. However, there are some installment loans that need to be retired as well as their minimum payments, unlike credit cards, are inflexible.

Do you have any specific assets that you want to invest in?

Yes, we are primarily focused on BTC and CEL. Both of these have long-term growth potential. BTC is the main investment. Meanwhile, CEL allows us to earn growth and reduce our interest cost when borrowing against the BTC.

Preferred Investment? Crypto, Real State, Commodities, Stocks?

The answer to this is not straightforward. Imagine you are Jeff Bezos. All your money is tied up in Amazon. Once the company becomes profitable and you become a gazillionaire, you can start to take some of your profit and diversifying into other investments. Elon Musk, for example, took his PayPal money and started other ventures.

Similarly, our preferred investment is Crypto. Crypto will get us to where we want to go, which is a higher net worth. Once we are at a level of net worth that suits our need, we will start to look at other assets such as real estate and dividend stocks. For now, our focus is on crypto for growth. Beyond 2021, we think the focus will shift to using the assets as collateral to buy income via real estate or note investing.

Do you have a plan or a set of goals on how to use and grow your stake?

The plan is steady and consistent purchase of crypto assets to increase our net worth. We have not yet sat down to discuss how much BTC and CEL is enough so that we can turn our focus to income-producing assets. However, it may well be beyond 2021. For now, accumulation and debt elimination are the broad goals to set us up for more specific goals with real numbers.

This is new territory for us. We have never had as much savings as we have now thanks to crypto. Therefore, we feel that we must tread carefully and have large margins in our numbers to allow for the mistakes we will likely make.

This year, we think we will be better off finding an Accountant who can advise us in this new territory. We have only ever used a CPA for taxes. Now, it may be time to employ a CPA more regularly for advice and tax planning. It is important to have competent advisors.

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