Monday, February 26, 2007

Targets, Objectives, and Strategy

A.f.f.e, our Stock Club, has one overall objective. It is to grow the nominal asset base to SEK10.000.000 by year 2034. This will be achieved through an annual 10% net growth (post 30% tax, 1,5% inflation, SEK300/month, yields not included). If a 1% average yield is reinvested it will increase the annual net growth to 10,7% and achieve objective by year 2033.

To achieve overall objective the following 10 club targets have been established:

  1. SEK100,000 - A Six Digit Number - year 2000
  2. SEK250.000 - Quarter of a Million - year 2004
  3. SEK500.000 - Half a Million - year 2008
  4. SEK600.000 - ROI SEK100.000 (gross) - year 2009
  5. SEK750.000 - Three Quarter of a Million - year 2010
  6. SEK1.000.000 - A Seven Digit Number - year 2013
  7. SEK3.000.000 - ROI SEK500.000 (gross) - year 2022
  8. SEK6.000.000 - ROI SEK1.000.000 (gross) - year 2028
  9. $1.000.000 - Dollar Millionaire - year 2030 ($ as of Feb 2007)
  10. SEK10.000.000 - A Magical Figure - year 2033

Vision $2.000.000 - Multi Millionaire - year 2036

Income of capital exceeds salary from employment over time. It is an indication of economic independence as of its definition. Some individual targets have been established.

  • Value of SEK50.000/per membership - A Nice Figure Halfway to a Small Car - year 2007
  • Value of SEK100.000/per membership - A 3-Month Vacation in Thailand - year 2011
  • Value of SEK250.000/membership - Quarter of a Million - year 2019
  • Value of SEK500.000/membership - Half a Million - year 2025
  • Value of SEK1.000.000/membership - Millionaires - year 2032
  • Payment inflow stops year 2033
  • A.f.f.e pays yield net SEK10.000/year and member - year 2034 till deceased, and/or
  • A.f.f.e pays net SEK10.000/month and member - year 2034 till deceased, or
  • A.f.f.e pays net SEK1.100.000/member - year 2034 (on leave or deceased)

P

No comments: