I bought my first ETF on impulse. I could lie and say that I did a lot of research before purchasing it but all I looked at was the expense ratio and the ETFs top holdings, which are all popular and well-known companies.
One thing that fascinates me, which I thought of after buying the ETF, is the fact that my mind was fixated on ETFs just from reading all the praises about them. I could justify myself by saying that since they are on every investment website I visit, it was hard not to be swayed.
I thought the first investment I would make would be thoroughly researched but I guess I am more impressionable than I initially thought. I am too trusting of people smarter than I am, I guess.
I am very lucky in the sense that my investment is showing an impressive upward trend. It has a few blips here and there, of course. My confidence would have taken a hit if it had gone in the opposite direction. Nothing is certain in this world. That fact has been drilled into my head for the past few weeks. For all I know, the ETFs worth may plummet tomorrow.
I am struggling to set investment goals. When it comes to making such life changing decisions, I am the embodiment of the words unsure and doubtful.
I used Vanguard‘s online template as a starting point to learn how to set clear, precise and realistic investment plans. The site has a sample layout of well-defined investment goals that I used as a guide to set up my own plans and strategies.
Writing a plan was harder than I anticipated. I had to ask myself the real reasons for my interest investing. It became something akin to soul-searching because I had to dig deep inside me in order to put everything on paper (word document, I mean).
My goals, compared to that thought-out template, seem too elaborate and unattainable. I have numerous goals that I am using as a set up for the type of investments I want to make. Moreover, each goal has an action plan set to achieve it. My document is more that 3 pages long and it gets longer every time I revisit it. It seems incomplete every time I read it. Will I ever finalize it?
There is a lot of emphasis on the importance of setting clear goals that you can follow for you to be more successful with everything in life. I wonder, however, if plans should be more dynamic to allow for growth. Of course, I may be saying this because I want to justify changing my plans all the time.
I wish I could talk to someone who has experience in the business of investing. Preferably someone with more than 30 years of experience. A person who has survived all the market cycles without losing too much. I could buy a book and learn from its author, but it is different from having a face to face conversation.