Well so far it’s looking unlikely that I’ll meet my 2008 goal as I’ve previously mentioned. So in light of that and the poor market performance I find myself a little unsure how to make some goals for next year.
It occurs to me trying to set a net worth goal is likely doomed to fail. There is too much volatility in the stock market and even the local real estate market for me to pick a number or % increase that will have any meaning. So with that metric out of the window I’m trying to come up with a new one.
My current thinking is I will likely focus on building up our TFSA and our taxable investment accounts in light of some of the good deals to be found on some companies stocks right now. Yes I’m aware I might get sucked into a few value traps if I do this, but that is part of the risk of buying low. The issue of doing this is the market value of these purchases might decrease further so using anything around the market value of them as a metric would be useless.
So instead I think I’m going to run with a single goal in 2009. The goal would focus on extra income from distributions and dividends rather than net worth. Also to reflect the uncertainty going forward I’m going to use a range of values instead of a single number. So far I’m thinking the goal would be: To increase the pre-tax investment income from distributions and dividends coming into my household (less any interest from my HELOC to buy investments) by $750 to $1000 per year by Dec. 31, 2009.
So what do you think? Is that a reasonable goal for 2009? Have you thought about what you are going to do next year?