I want to start rolling rental income into the stock market more. I already max my company 401(k) so I don't mind something that isn't tax deferred.
Up to this point I have been saving $5k and then buying a mutual fund. Then leaving it forever. Rinse and repeat. I tend to prefer high dividend mutual funds that autoreinvest with no fee.
I also want to get into some companies that I know are doing well like Amazon for instance. I can't see a world where they don't exist so it seems like a good buy at the moment.
That all said, if I am going to shift to stocks that I manage I want to know when I should take my earnings, or if I should just leave it.
Is there a target return that's accepted as good? I assumed 8% (plus transaction fees). My reasoning though is pretty arbitrary. Can anyone provide any guidelines on setting your return target?
Also is $5k the right amount? Should I commit less per seed? I do 3 purchases a year at best.