Stick To The Plan

The Plan

You have a plan, make sure you stick to the plan.

Hey everyone

Sorry for the late post. Wow what a interesting time eh? Over the last week my stance has changed quite a bit. A lot of you have been leaving comments and emailing me about how bad things are getting and basically I should move forward with caution. I now agree, things have gotten a lot worse around the world.

Clearly the U.S is leading the world now in cases. Trump has always been obsessed with the market and the economy in general and seems to want to get people back to work as soon as possible. I don’t see that curve flattening anytime soon. Did you see everyone on the beaches during spring break?

With March break right behind us I think the next 2 weeks will be critical.

Here in Canada, I think we are starting to handle it better. Ontario is now under a 2 week lock down for all non essential services. (Although the list of essential services was really long and could be a debate all itself) I also noticed people in general have started to take this a lot more serious these days as well. Let’s all keep our distance and flatten this curve. We need to move past this as soon as possible.

What Have We Been Doing?

Me and the wife are now both off work for the last week and half. Which is actually pretty nice. Sure I’d rather be working or going out to do actual activity’s, but it is what it is. We are constantly occupied playing with the kids, or knocking out that honey to do list. The weather here has been nice so I got the yard all cleaned up, Gardens edged and weeded. The power wheel has been tearing up the backyard and we busted out that fast and furious remote control car again. Yeah I live my life a quarter mile at a time too……

Our neighbourhood backs onto a huge forest with farm fields as well. We have been walking through there nearly everyday with the dog. Its nice because we see wild turkey and deer on the regular and barely ever see people.

I started ripping apart half the deck yesterday since most of the boards were rotted and will finish that later on today.Sometimes I do debate what to do as it’s kind of a double edged sword. Id love to do the whole deck or replace our crappy shed, but at the same time the market seems cheaper and we also got to watch our finances at the moment.




Market Thoughts

The market has rallied a tonne the last couple days because of the printing presses and all these promises. The reality is things will get worse before they get better. Unfortunately there is going to be a lot of people who wont make their rent for April 1st, both Companies and Individuals. From there the snowball will grow. The issues wont be getting toilet paper anymore.

We found out today that Canada’s big banks fielded more than 200 thousand mortgage deferral requests. Each one of those who get approved will get their credit dinged.

The US reported 3.28 million people filed for unemployment last week, double what analysts thought. Remember 2009? The peak then was 665,000 in March 2009. That is mind blowing. Canada’s Numbers are staggering as well nearly 1 million applied for employment insurance last week. You think those numbers will be better next week? Doubtful.

All this news really makes me question Bank’s as an investment at the moment. Clearly I’m heavily invested in them. Canada’s banks have long had the reputation of being the best banks. This will be the ultimate test.. We got all these people going on unemployment, oil getting slaughtered, businesses shut down, low interest environment (just got notice on phone Bank of Canada dropped interest rates again), rent most likely not getting paid, no one renting air b n b’s at the moment and potentially a massive housing crash unravelling.

The Plan

Scary times for sure. It really makes us happy to have paid off all that debt years ago and setup all our passive income sources. I always questioned if the solar panels was the best investment at the time. It feels great to have them but that market was roaring, maybe our money would of been better there. Now its reassuring that world wide events doesn’t effect that investment.

Overall we are just sticking to the plan. We are basically fully invested. (I did sell our position in Emera at a 14% profit plus dividends the last couple years, in case we need the money if things go on longer than anticipated or for better opportunity’s) I also have all our dividend stocks setup to drip, to take advantage of these lower prices! Same as always!

I will continue to deploy money into the market moving forward focusing on top quality blue chips. I wont be touching the airlines, cruise lines, hotels or anything like that other than Disney. I understand some people want to bottom fish, but I don’t think we are at bottom and those sectors are really high risk at the moment in my opinion.

One of our goals was to get a rental property during the next housing crash. While we aren’t there yet, it is something to consider moving forward. Maybe we will focus on maxing those tfsa’s first though. Time will tell.




Conclusion

Clearly we are entering uncharted waters, the world as a whole needs to work together and take things a little more seriously. This morning we found out Boris Johnson, the Uk Prime Minister tested positive for Covid. While I would never wish this on anyone, when a top politician gets it I hope they take this more seriously and focus on people’s lives.

As I stated before I have changed my stance on this issue. It’s more serious than I once thought. Would I of done things differently? I don’t think so. I will continue growing our portfolio on a monthly basis. I do think I have learned some stuff from this ordeal though

  • Have a emergency fund or cash for pullbacks
  • Focus less on diversifying on all sectors
  • Buy more dividend kings!

Well that’s it for now, no purchases this week other than our monthly 250$ purchase in xaw etf. I wish you all the best in health, wealth and good times. Make sure if your off your enjoying this time with your family. We will get past this.

Stick To The Plan, Your future retirement will thank you.

Btw just finished Tiger King on Netflix – check it out if you haven’t. Wow what a show. haha. You watching anything good?

cheers!

 

10 Responses

  1. Greg St.Croix says:

    If it is a movie rec you wanted do yourself a favour and get/watch Ford vs Ferrari. Even if you aren’t a car buff this was really well done. True story as well.

    • Rob says:

      hey Greg

      Thanks, I have heard good things. Will check it out. Think bourne’s in it too. He’s great. Also love movies based on true stories.
      cheers man

  2. German says:

    I’m sticking to my plan of regularly reinvesting the dividends and putting more money to work on the dips. We work remotely and enjoy the time with the kids since the schools are closed. New cases should be in a few weeks and then they should drop. I think that most companies and factories will resume operations with procedures to ensure the safe and healthy environment. For example, in China, people are back to work, but they have to wear a mask, sanitize their hands and shoes before stepping inside the work place. This is something we could implement for the next 3 to 6 months to keep the public safe. Take care and stay safe! Enjoy the time with the family.

    • Rob says:

      hey German

      Very nice that you can work from home. I really hope things go back to somewhat normal soon. I never thought there would be a market pullback and we couldn’t work during it.

      The plan was always hustle in a down market. Work more and be a little thriftier throw the rest into the market. I dont think the market will bounce right back though, so there will be time after we go back to work.

      All the best to you guys as well German
      cheers

  3. I am watching life unravel all around, but I am sticking to the plan. I live in NYC which is the epicenter of the virus now here in the USA. It’s crazy. I work for the city, but we switched to working remotely from home when needed. I still have to go in to the office once a week and some of my coworkers have become sick already and told not to come in at all. Hard to believe how this all unraveled so quickly. I can’t wait till this passes, but I think it will get worse here for it gets better. I’m still investing and building up my dividend income. Just got to try and stay healthy and work towards my goals. Best of luck to you and stay safe and healthy!

    • Rob says:

      wow Dynasty

      I didn’t know you lived there. Glad to hear your working from home most of the time. Although I’m surprised the city hasn’t made everything remote in this situation.

      We have a couple positive covid cases in our community but 20 min away into the city’s, things seem to be spreading fast. Unfortunately people are also to blame, these 2 weeks after march break will be bad imo.

      I really hope things go back to normal soon enough but fear this will go on for a lot longer than they anticipate. On a positive note our finances are pretty good, it would be a whole different story if they weren’t. That would only amplify everything.

      Glad your sticking to the plan. Do you wear masks and gloves when you go out to get groceries etc?
      All the best dynasty make sure you stay healthy and keep us posted about the situation.

  4. jimmbboe says:

    Picked up some FTS and CNR below cost. No idea when the restaurant dine-in will reopen so my hours have been cut back drastically. Stay well!

    • Rob says:

      nice buys Jim

      Id love to increase our cnr holding and possibly start a position in fortis. Gotta love their dividend history.

      Sorry to hear about work Jim. Its unfortunate to not be working in this market. Id love to be scooping more shares up.
      Hopefully things recover soon
      all the best
      cheers

  5. Yeah, scary times. Just seeing such huge government support and I think the situation is even worse. I am also cautiously buying dividend kings, now it is time to improve dividend yields. Waiting for real estate to create opportunities, we cannot afford a house in Vancouver. Stay safe and healthy!

    • Rob says:

      hey Income

      For first time home buyers, I think this may be exactly what you have been waiting for. I really think real estate values will drop in the next year. I could be wrong as interest rates are so cheap though. Timelines keep getting extended and people keep losing their jobs. Its going to be a weird year thats for sure.

      All the best on the house search and beefing up that portfolio with kings.
      cheers and stay healthy as well.

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