IPO gambling

For the past year there have been a series of initial public offerings (IPOS) in my local market and several friends of mine have jumped on the bandwagon in buying a fair deal of them and then selling them of at the initial time of release.
Currently they have made a great income on these transactions (about 15% plus after taxes) which is by my own investing means a great rate of return, but also these investments are liquidfied within a certain time period. Allowing for further greater investments into IPO’s like the interest on intrest effect that is the dirving force behind financial freedom.

I deem that these actions are considered gambles as you never know if you’ll strike gold or not, but if one plans it out: say I’ll use $100,000 in 100 IPOs for a 1000 dollars in each IPO. This would reduce the risk of an all out failure and still have a potential for great yields.

I’ll hopefully return to this subject after I’ve stabalized my current asset allocations to my desired positions. That is 20% cash, 30% estate, and 50% stock and bonds.

Best wishes,

//A.W

A goal without a plan…

Is nothing more than a wish. –

My goal as previously stated is to be financially sound at the time of my retirement.
My plan to get there is rather simple to begin with. Its rough draft is as follows:

Acquire passive income in the form of interest rates, dividends, and rent.

There I aim for about 10-20% of all my capital to be invested as cash for interest rates, hopefully this will submit about 7% of all income, this is assuming a 2% ROE (return on equity). This cash will be kept for emergencies and potential drops so it will be easier to capture market drops when re-balancing my portfolio. I hope for about 20-30% to be invested in real estate, these can have mortgages which will not be included in my cash count but the interest rates will count against the income acquired from such properties. This will hopefully contribute about 28% of all my income, this is assuming a 5% ROE. And the rest will but put in the open market in funds and ETFs and will yield about 65% of income, this is assuming a7% ROE, which is in my opinion quiet high.

As you can see 7%+28%+65% = 100% so all my passive income will come from these three aspects.
This is just my plan from the beginning. It is bound to be open to changes and re-evaluations. More numbers shall be arriving shortly.

//A.W

From Student Loans to Bullions

I am starting this blog to document my “road to riches” with the hopes of following the struggle an individual takes reaching for financial independency and security with the goal of being able to live of my passive income as it steadily continues to grows.

Through this blog I hope to inspire any and all to reach for their own financial independence and that it doesn’t mean you have to give up any quality of life. I hope that my own experiences will give anyone with the will and determination the tools to take control of their own fiscal situation in this world of uncertainty. Though it may be some time between updates at this blog I’ll try my absolute best to stay true to my followers and my own strategies for a more secure future.

Best regards,

//A.W