A mental trick to stay focused long-term: think in number of shares, not fiat currency

L'auteur partage une stratégie pour rester focalisé sur ses objectifs financiers à long terme en pensant en termes de nombre d'actions plutôt qu'en monnaie fiduciaire. Cela l'aide à rester calme lors des baisses du marché.

Instead of having a goal in dollars or euros or whatever, I think of my goal in number of shares. Let’s say for simplicity that you invest in a one-fund portfolio like VT. You want to retire in 30 years with the equivalent of $2 million in today’s money. * VT’s current price is $119 * Assuming 7.5% annual return: VT will be around $1041 in 30 years * Assuming 3.5% inflation: $2 million today will be around $5.6 million in 30 years * So you need about 5392 shares ($5.6M / $1,041), let's round up to 5500 So that's your target amount: 5500 shares of VT. The good news is that right now, 5500 shares of VT would cost only $654k. So you better accumulate as much as you can, as early as you can because the longer you wait, the more expensive it will get. This helps me stay calm when the market drops. My number of shares doesn’t go down when the price drops. I don't have this feeling of getting further away from the goal. If anything, it becomes easier to buy more shares and get closer to the goal.