How detailed is your strategy and planning?

Yep. I don't think there's anything wrong with having a plan. However, I do think there is something wrong with having a plan and sticking to it no matter what.

 

Reading through this thread I would say my style lines up pretty closely to Ace's.

Had a concept in mind at 20 - own 7 houses at retirement. Cash flow was always the aim. I then looked for opportunities as they arose that would bring me closer to that goal. In parallel still developed my career which in the end led me to start my own business. Always enjoyed my job to the point where I never considered it a job.

No real plan written down. Certainly no review of a plan.

Never really changed direction and as a result we now have a larger version of what I originally planned.

 

Bit of a different game though as a prop investor where deals are often opportunistic. When wealth is derived primarily from operating businesses (at least those of an ongoing nature not trader stuff) you have lost your mind if you don't have a long term plan and strategy.

When you take those punches in the face, you update your plan. Uncertainty is no reason not to plan. I took a ripper punch this year, plan was updated. In that case long term planning was extremely helpful in placing the level of damage of that "hit" in a long term context and then getting on with it. It's a personal business plan in a way, a document that is updated and "grows" with the business

This is all pragmatic, not Pollyanna stuff. The assumptions made are conservative with the exception of a lot of hard work

Horses for courses

 

Goes along with..
"If you fail to plan, you plan to fail"

For me... depends on what I'm up to at the time, plan can be in head or detailed down on paper and spreadsheets.
As I'm a n00b at the whole PI play, I'm writing everything down so I don't forget stuff and tying regular reviews to calendar reminders.

 

I am a big believer in planning, both at the strategic level and the tactical level (thanks to my business experience and my project management background).

But, I am also a big believer in Ready, Fire, Aim. That is, "get your missiles in the air and then work out where your targets are".

Too many people are Ready, Aim, Aim, Aim, ... That is, they never 'pull the trigger'.

 

... get their ear bitten off (a la Evander Holyfield) by Mike.

 

I recall the time (a bit over 5 years ago) when I had excel spreadsheets projecting the inflow of dividends, margin loan gearing levels, simulation capability, etc. At one point I had a spreadsheet that simulated the growth of dividends washing through a possible property loan that I was considering.

It was enjoyable developing, refining and applying some of them.

Fast forward a few years,ie, down to one wage, young child, getting older, etc - I have started to look for simplicity in my finances and planning.

The planning for me is not so ' sexy ' any more. However, I believe that goal setting, planning and monitoring is very helpful.

These days it is a simple spreadsheet showing:

- Current Property Investment Loan as a % of initial loan
- Current Value of Super investments as a % of 5 year 'goal '
- Long term cash reserves maintained at a set minimum level
- Same for short term cash reserves.

Spreadsheet updated monthly (rather than daily in the old days )

In achieving these goals we have a set regular fortnightly contribution for the Investment Loan and the Super accounts.

Any excess build up of funds in Cheque a/c cleared into long term cash account from time to time.

All very basic and crude now but very mentally freeing for me.

Still like to see the strategies and passions of others here. 2 qualities needed to achieve goals.

all the best