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Never thought I’d root for a market downturn

Posted by mapetitechou on Feb 25, 2015 in Investing

Or even a market crash! Yep years ago if I saw my mutual funds drop in value, that would scare the crap out of me. Now when I want to buy an ETF, I always hope for a drop in its price, the bigger the drop the better. It’s interesting how your mindset shifts the more you learn about investing and the better of a bigger picture you have about your financial plan.

When the market is going up, I lament the fact that I cannot purchase as many shares as I was hoping for. Sure the market value of my other ETFs are up, but that’s unrealized gain. If I’m not going to sell those shares, the unrealized gain does not mean much to me. Similarly, when the market value is down, the unrealized loss does not mean much to me either. I only care about how much the shares are going to cost me when I buy and I want them to be cheap. But, as the experts always say, you cannot time the market, you can never know for sure when is the best time to jump in, so the best time to buy is now. It’s better to get in the market than to have cash idling in your chequeing account. That’s the opportunity costs that pros refer to.

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My lofty financial goals

Posted by mapetitechou on Feb 19, 2015 in financial goals

I may not be a finance expert, but one thing I know for sure is you must have financial goals, like most things in life if you want to live a satisfying and meaningful life. I don’t have a whole lot of long-term goals. I call them lofty in jest because they are such huge goals, but I’d like to think they are achievable if we work hard at it. So the two goals that I have are:

1. The biggest one, the holy grail of our financial journey, is early retirement. I don’t have a specific year or age by which we want to retire. But we know we do not want to work until we are 65 (actually now the new retirement age in Canada will be 67 by time my generation of people retire). It all comes down to our income earning capacity, saving rate, and return rate of our investments. We are working on all fronts. If we can make more money, save more money, and put more money into your investments, our retirement will come sooner. It’s pretty simple. But not easy to do.

2. To save enough money for my children’s university education so that they can have the option of going to any university they desire and are accepted into without having to worry about student loans. It would be nice if they had scholarships, but we still need to plan accordingly. I hope they stay within North America just because I don’t my babies to be too far away from me. But I cannot dictate when the time comes. So if they want to go to Harvard or Yale or Standford, I want to have the funds available to support that. Education is very important to our family. Both my parents had university education, my dad holds a Ph.D. Both my husband and I have a Master’s degree. So it’s a given that our kids shall have university education, Master’s degrees at a minimum. I always say the kids can do anything they want, but they must have a Master’s degree. They want to go to Hollywood to be a movie star? Sure! Get a Master’s degree first then go to Hollywood.

I have various short-term goals at any given moment depending on what’s going on in our life right now, such as family vacations and stuff, but they are kind of covered under the big goals ’cause they all affect each other, like you can take that expensive vacation or you can put that money in your ETF. It’s all part of daily life. You are always making choices and tradeoffs right?

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Welcome!

Posted by mapetitechou on Feb 19, 2015 in Uncategorized

Welcome to my new blog! If you clicked from my fashion blog Ma Petite Chou to get here, thank you so much for reading my fashion blog and thank you giving this new personal finance blog a try. And if you simply randomly landed on this blog, thank you for visiting and I hope you stay for a while.

As I said in my introduction on Ma Petite Chou, personal finance is one of my interests that I’m passionate about. I will talk to anyone who will chat about it with me. I’m interested in all aspects of personal finance, from savings, debts, looking for deals, to investing, financial planning, taxes, relationship and finances, etc. It is such a vast subject, there is just so much to learn about it. I love reading finance books and blogs. Business and Financial sections are the first ones that I jump to when I read a newspaper. I would like to share my daily musings with you. Let us keep it fun and light and informative. So please stay tuned.

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