Goals for 2018

A new year and new set of goals/target to set. A new year is a good time to dwell on goals to set — not just financial but also personal and professional goals. To make steady progress on a regular basis requires determination, patience and of course a target in mind. Setting and writing down goals and working towards them are one of the best ways to make progress. As far as financial goals go, the long term goal still remains the same — achieve financial independence that will provide us with more freedom to do what we want out of life. Following are the goals that I am setting for 2018.

Goals for 2018

  • Total passive income of $11,000 – I came very close to reaching my $10K passive income target in 2017. For 2018, I am setting a target of $11,000. This is a good middle step before I aim for $12,000 in 2019, which I had set as a medium term goal a couple of years ago. I like the idea of reaching $12K per year as a nice round up figure of $1k per month.
  • Pay down more than our minimum dues on mortgage debt – One of our long term goals is to pay down our mortgage well before the current 25-year amortization schedule. We have been homeowners for a few years now and feel that paying down faster is better for us psychologically and want to work on putting more payments towards that goal in 2018. In 2015, we were able to pay an extra 21% easily. With no extra payments done in 2016 and 2017, we need to up our ante if we want to whittle away at our mortgage debt. We will aim to pay an extra 25% in 2018 and hopefully grow that number over the coming years.
  • As mentioned in the Outlook for 2018 post, our total portfolio is not well balanced and requires more attention. The goal for 2018 will be to achieve better portfolio rebalancing and diversification. Our current portfolio (as of January 2018), is shown below. Some of the action items that I had captured in that post include:
    • More passive investing vs. active investing approach. Leaving the cash portion aside, currently active-vs-passive investing has a 80/20 representation of the overall portfolio. For 2018, I will aim to bring that to closer to a 60/40 ratio.
    • Rebalance stock portfolio – I want to rebalance by reducing my basic materials/commodity exposure, which has overgrown thanks to good returns and over enthusiastic investing on my part in the sector. I will be looking to book some profits and (and perhaps cut some losses) reduce the overall exposure of the sector. My goal will be to reduce sector weighting to 35% of total stock portfolio.
    • Asset Class Diversification – Diversification is what saves our assets when we hit a financial storm. I want to position myself appropriately to protect and hedge my bets. In order to do this, I want to decrease my overall equity exposure and increase investments in fixed income, hard commodities and cryptoassets. I also want to diversify geographically by investing more in companies that have increased revenue internationally (outside North America).

Asset diversification as of Jan 1, 2018

Stock Portfolio as of Jan 1, 2018

Have you set your goals for 2018 yet? Share them if you have. What are your thoughts on the goals discussed above. Be sure to leave a comment below.

Further Reading: See goals from previous years

6 thoughts on “Goals for 2018

  1. JC says:

    All of these look like achievable goals R2R. I’m working on a 2017 recap and then a 2018 goals/plan as we speak. And honestly, a bit more exposure to passive investing wouldn’t be a bad thing. Active investing doesn’t take a toll on me as far as emotions/psychology rather it’s the time aspect and whether there’s something else I could do with my time that would be a bit more productive. I’m also looking at increasing our crypto exposure, we have just a tiny bit there and honestly I’d like to see it bumped up some. It’s only less than 1% right now and getting up to between 2-5% wouldn’t be a bad thing. All the best in 2018 and I can’t wait to see you hit that $12k mark. $1k per month is a very nice round figure.

    • Thanks JC. Hope I can do better with the goals than last year 🙂
      Yes, having a slightly higher exposure to crypto might be prudent. Due to the high growth, I have gone from 2% to 6% of my investable assets for the crypto portion. I wouldnt mind letting it run for a while before I decide to make any changes. Lets see how things end up.


  2. Nice list of goals road. Im the opposite of you and need to pump my basic materials sector up! Its my lowest sector at the moment. I havent worked on my goals. Kinda feeling things out while the wife is on mat leave. This will lower our income and will be doable just might not be investing as much.
    One of my main goals that i know of is to invest in dividend stocks with a longer history of boosting the dividends.

    • Basic materials should do well as the US$ continues to weaken. Looks like the peak is in and all indications show that US$ is starting its bear market now. Of course, things could reverse overnight…but there are a lot of serious problems in the system which should see devaluation necessary, which is why I am focusing my investments on real assets.


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