Thursday, December 24, 2015

Capital Deployment During Stock Market Downturn

First of all, I did not come up with this concept. I learn it from Financial Samurai. I think it is a great concept to keep you on course when the stock market suddenly goes south.

We all say we will buy low and sell high, but when the market drops like a falling knife, there will be a flood of emotion that alters your decision.

Given the recent drop in the market and a new lower plateau that we have reached, I will plan my investment based on the correction from this plateau of S&P 500 - 2786. I have already deployed some investment during last months drop.

S&P 500 drop 2% from peak (2730) - Invest $25,000
S&P 500 drop 4% from peak (2674) - Invest $25,00
SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/#comments
S&P 500 drop 6% from peak (2618) - Invest $25,000
SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/#comments
S&P 500 drop 8% from peak (2563) - Invest $25,000
S&P 500 drop 10% from peak (2507) - Invest $25,000


SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/#comments

Sunday, December 6, 2015

Prioritizing The Important Things in Life

Some people have an internal compass that automatically sort, organize, and prioritize the elements in their lives. Whereas other people, like me, do not. I am more on the creative side, scatter brained, jumping on wild ideas. This inability to prioritize and organize also lead to anxiety as small problems are emotionally magnified. Because of this observation about myself, I realized that I need to consciously think through what I thrive for, what is truly important, what take precedence. As I go through this exercise I become less anxious, my goals become clear, and I become more focused.

In order of importance, these are what I value in life.

1 - Health,

2 - Relationship

3 - Money

4 - Freedom, autonomy

5 - Success, achievement, progress, respect


For other people it maybe different. I am not religious or spiritual, but I can see that high up in the order of importance.


Since this blog is about financial freedom I will digress and discuss what constitute a good job. What you like about a job also over lap with some of the elements listed above, especially the last 3. Our professions take up a majority of our waking time; therefore, we should optimize it to improve the quality of our lives.

Here are some elements of a good job:

Control over schedule
Interesting subject
Challenge, growth
Align with your strength
Good colleague
Pay, especially progressive increase in pay
Making a difference in the world


I become grateful for what I have as I go through this exercise. And the things that I lack, knowing it is not essential, causes me less anxiety.