The BBC Storyworks site in Canada has launched a 6-part series written by me about Covid-19 and the impact on housing and the mortgage industry. The articles will appear weekly, starting this week. Later articles will look at mortgage options, the investing experience following Covid, optimum investment strategies going forward and close with retirement strategies in the age of Covid.
The first article went up on Thursday and covers how the Work-from-Home phenomenon has impacted where we all live and work. You can find the full piece by clicking on the highlighted headline here: Rethinking Home Base. The series is sponsored by TD Bank.
Working from home is now mainstream, whether temporarily for those still employed, or as a more enduring shift to home-based self-employment. Many technology companies now let employees work from home: some until 2021, some permanently.
“Covid-19 shaped the real estate market during the second quarter in every possible way,” says Phil Soper, president and CEO of Royal Lepage. Its latest housing survey showed home prices rising sharply, with supply struggling to keep up with a surge in demand: “As the reality of extended and potentially permanent work-from-home employment sunk in, people pondered both the location and size of their homes,” he said in a release on the survey, “Simply put, larger homes in smaller communities have become more fashionable.”
Many urban homeowners are selling their expensive city homes and swapping them for bigger places in the suburbs or cottage country. Not surprisingly, and as Reuters recently reported, there’s a severe glut of office space in New York City. Many REITs with heavy exposure to offices and malls have been hard hit.
Consumer spending patterns changing too
Covid has changed consumer spending patterns, with less eating out and reduced need for new clothes for the office. Meanwhile, cooped-up homeowners are landscaping back yards, and adding pools and decks. These home-based workers are upgrading computers and office equipment, upgrading smartphones, adding peripherals from Logitech or HP Inc., trekking to Home Depot to retrofit workspaces and ordering furniture online from RH or Wayfair. They stay in touch with customers through technologies like Zoom or Skype. They collaborate with remote co-workers through Slack or Microsoft Teams. They close deals with electronic signatures from firms like DocuSign, while medical professionals consult via telemedicine tools like Teladoc.
Cottage country booming
Cottage country is experiencing a massive sales boom. The story says veteran Collingwood realtor Karen Willison is swamped with business from urban refugees. Far from creating bargains, Covid has elevated home prices across the board, especially those with waterfront.
New retirees figure prominently: Pre-Covid some clients who thought they’d retire in two years are speeding up plans. We’ll look at this aspect more later in the series.
No one likes the sting of putting out money for building repairs, but if your initial investment could save you hundreds, maybe thousands of dollars, it’s well-worth the momentary pain. These same upgrades will also help you avoid costly damage that would end up making a bad situation even worse. If you’re the owner of a business or company, here are six commercial upgrades that could keep you in the green.
Get into hot water
Most people try to stay out of hot water, but the fact is that everyone needs it and it can get expensive if your heater isn’t efficient. When your hot water tank is old, rusty or leaking, don’t try to squeak by for another year. For example, if you live in California, contacting a water heater company in Granada Hills and changing out that old tank, or selecting a newer “tankless” system, will start saving you money right away. Once you’ve got a new tank in, always remember to keep the water temperature just hot enough and never on the highest setting, and you’ll see the difference in your bill.
Change out your bulbs
Changing out your company’s lighting is the easiest tip you probably never thought of. In a place of business, lights are in use all day, every day, so why not save every penny you can? Switching your regular incandescent bulbs to energy-saving LED bulbs will use 75% less energy. They also last 25 times longer than regular bulbs! In a building where the lights are on all day and possibly all night, switching to LEDs will save you significant money.
Weatherize the Building
Just like you save energy at home, you should do the same at your workplace and weatherization is just the ticket. For example, you know that drafty area everyone complains about? That’s hard-earned money going right out the window. Before you lose any more, now’s the time to seal up or replace those loose fitting windows and doors, making the building attractive as well as efficient. If your office gets extremely cold during chilly days, consider brand new insulation or adding to what you already have.
Take advantage of the Sun
More and more businesses are deciding to harness the energy of the sun to help with costs. Using solar power can greatly reduce your electric bill, but is most compatible with larger establishments that have the space to install an adequate size system. Continue Reading…
I did not want to book a ticket only to receive a voucher for a cancelled flight, so for weeks beforehand, I did my homework and had been tracking arrivals and departures from both Guadalajara, Mexico (GDL) and Phoenix Skyharbor Airport (PHX) in Arizona.
While other airlines were no longer flying this route, American Airlines had been dependable, with daily flights on time and arriving in one piece.
I made my reservations online and signed up for text alerts on my flight. The day of the departure, I had our driver take me to GDL International airport hours before departure in the event of any snafu’s. I knew things were going to be different, flying in the time of COVID, and I wasn’t sure what I would be meeting.
Arrival into bureaucracy
I registered at the desk and checked one bag. All went smoothly, until I found out I needed to fill out a “health form” before I entered the security x-ray area. No problem, just hand me one: oops, no paper form available, it’s all online. First, I must add this contact number to my WhatsApp, then fill out the form, and scan the bar code at the security entry like your boarding pass on your phone. I was good to go.
Except that my flight had no gate assigned yet, because it was delayed!
Oh no.
Glad I signed up for the alerts!
My flight continued to be delayed over the next 7 hours with my phone beeping every 20 minutes to let me know I wasn’t flying yet.
I tell myself: I just want to leave today! I don’t care if I have to snooze a few hours in PHX airport so my ride can come get me at a reasonable time the next day. I just wanna go.
Normally, my wait time in airports is filled with my catching up on emails, perhaps watching a video and then gliding onto the plane. Today, I was far too nervous to get interested in anything long term like an email … With the public announcement mentioning this flight leaving, that flight leaving, my phone beeping, my husband whatsapping me, my ride in AZ is whatsapping me, things were getting too crazy.
C’mon guys, give me some clue!
Hours into the delay, I figured I needed to speak to someone at the American Airline desk. Where the heck is THAT?!
Do you know how big airports are?
After literally walking thousands and thousands of steps (I have a step counter on my digital device) and realizing that I would have to go outside of security, then back in “somewhere”, wait in line, speak to an agent, fill out the health form again, go through security again, lose the $3 bottle of water I just purchased … I started to get frustrated.
Meanwhile, my phone continues to beep letting me know: that my flight had been delayed, yet again.
Should I reschedule myself for another flight another day? After speaking with agents at the desks by the gate where I had parked myself, they tell me “no, no, your flight is leaving today. It’s not canceled, just delayed.”
I wonder if I should just take a taxi back home and start over. I’m beginning to get a little confused as to what might be the best thing for me to do. Meanwhile I was hungry beyond nuts and raisins to tide me over.
All passengers for flight #5902, come to your gate
A young Hispanic bi-lingual girl sitting next to me also waiting for the same flight, suddenly jumps up and said “They want to talk to us.”
Digitally contacting my family in Arizona and Billy in Chapala, all of us were watching this unfolding scenario. I eventually received a meal voucher after 4 hours, which was very nice of the airline, and the right thing to do.
I use mine to get some grilled tilapia, mojo de ajo, and a mango lemonade. The dang phone keeps beeping – yeah yeah, I get it. My flight’s been delayed.
This goes on until I get my new update. My flight – isn’t cancelled – it’s delayed until tomorrow afternoon! What!?
Back to the gate desk to see what’s going on.
Sweet dreams
The man at the gate explains that my flight will leave tomorrow and for now, here’s another voucher for free transport to a hotel, prepaid night at the hotel, dinner and breakfast the next morning, then transport back to the airport.
So now I must get my checked luggage from the original check-in desk.
I’m still walking around (thousands more steps) until I can find an exit out. I speak to some young girls at a table, then a young man whom they call over who promises to help me obtain my luggage.
Getting to the American Airline counter, the guy who took me there says I don’t have to wait in line in a case such as this, just go to the front. Perfect.
Now what?
I speak to an agent who is very kind, explains to me more of what is going on (in English, thank God) and I take my luggage and myself to the shuttle meeting place. Lots of other passengers are there as well … and I wonder … where will they take me? As we crawl through Guadalajara commuter traffic, I’m curious as to if this hotel will be a cheapie? Will there be hot water? Oh gawd, I hope there aren’t cockroaches or other critters. The way this day has been going anything could happen.
I look around in the transport van, and I notice a well-dressed young family, several women with coifed hair and freshly done nails… No, they wouldn’t DARE put me up in a cheapie. These high-class women would rise up in rebellion!
You can clearly see Chapala, the Airport and the location of Fiesta Inn
Arriving at the Fiesta Hotel
Arriving at the hotel, people are friendly and with big smiles. I get signed in, get a credit-card type of entry key, sign a few forms, and the check-in clerk hands me a small box, which I’ll open when I get to my room. It’s now past 8:00 in the evening and I am ready to call it a day. I’m not slap-silly yet, but close.
Wandering around some more looking for elevators or stairs, I find myself directed to the elevator and I push floor #2. Nothing happens. I know I’m tired … so I press again, only this time, harder.
Soon the door opens and a young man and older woman enter. He scans his credit card entry key and presses floor #1. He instructs me to do the same. Oh jeeze. Country bumpkin discovered.
Cripes.
I get to my room, use the credit card entry key and now can’t seem to find the way to turn the lights on.
A completely gorgeous young woman who is a fellow passenger is outside my door and offers to help me to get anything I need. Mexicans are so well-trained by their mothers to be polite, helpful and considerate: to women and especially older women. That would be me.
I am very grateful.
My comfy hotel room
After I get inside my hotel room, I open my box. There is more hand sanitizer gel, wipes and another mask. With 9 masks on me and my own bottle of hand gel, I have gel and masks coming out the wazoo.
My room is huge, clean and has 2 queen size beds, shower amenities, a desk, and a huge digital wall TV. I fiddle with the air conditioner which is set on – 16 Celsius, roughly 61* F. It felt like you could hang meat in this room.
It takes me a few moments to realize that my digital weather station is telling me that soon, I’ll be sleeping in a freezer and I adjust it up to a comfortable 24 C.
Breakfast also came with a fruit plate, coffee and juice
Breakfast
With the voucher for another free dinner at the hotel I couldn’t fit two dinners into one evening since I just finished the one at the airport. Oink, oink.
I was so tired I couldn’t even make it down for the free glass of wine.
However, the comp’d breakfast the next morning was delicious also, with great service.
All of us passengers are shuttled back to the airport, and a big surprise awaits me.
No kidding, Billy finds me in the airport!
Billy – on his way to meet up with friends for the weekend – was flying to Puerto Vallarta, Mexico, and for curious reasons, his domestic departure gate is just one down from my international departure gate! Go figure.
So, my knight-in-shining-mask walks up to me as I’m waiting in the gate area. You can notice how happy I am to see him!
I finally did make it to PHX, albeit, a day late and a few Pesos short.
Returning to Mexico – smooth as silk
Shuttle shenanigans
Initially, back in Mexico when I was trying to make reservations for transport from the airport to my sister’s home, the local shuttle was not running. For a special driver, I would have had to pay $350USD+ for a round trip ticket, purchased in advance for the discount. This is about what I paid for my roundtrip flight, and I wasn’t keen on spending my money in this manner. Continue Reading…
First the disclaimer: I am not an expert. Certainly not a certified financial planner or financial advisor. But I have managed my own portfolio for more than thirty years and I’m willing to share the strategies that worked for me and might work for you.
Like the Random Ramblings of Uncle Ralph in my book of advice for entrepreneurs, Don’t Do It the Hard Way [shown on the left], I strongly believe in the value of learning by sharing stories and ideas with my fellow adventurers in life, business and investing. Based on my experience in successfully growing an investment portfolio over several decades, these are my suggestions for your consideration.
Start with educating yourself. Learn from the experts. Read Warren Buffett’s bible, the Intelligent Investor by Benjamin Graham, to understand the basic principles of investment analysis and value investing. (The technical details may be beyond your understanding and are probably more than you need or want to know.) Look at current recommendations and valuation assessments of competent financial analysts to understand their processes and the factors that most affect future prospects for any business. You’ll discover that while there may be consensus, there is never unanimity. Learn to evaluate businesses against the criteria used to identify the top performers in Built to Last and Good to Great by James Collins and Jerry Porras. You will gain confidence and learn to trust your own analysis and instincts to select investments in businesses that you also understand, like and respect. Would you buy from this company? Would you like to work for this company?
Start to build your self-managed portfolio with an online direct-investing resource. You may choose to gradually transition from your current advisor or financial planner as you gain confidence, before deciding whether or not the results justify their fees for portfolio management services. You may decide not to interfere with their good management and avoid taking on the responsibility of managing your own portfolio.
Although I’ve been satisfied with my own portfolio management, I’ve still left some of the family portfolio with an investment advisor. I don’t want all the financial responsibility and it continues to give me a convenient comparative benchmark and resource for evaluating my own portfolio management. But if you’re confident in your knowledge and analysis and in your ability to remain calm, cautious and patient through the inevitable crises and extended downturns, then you’re ready to take charge and do it yourself for some of your investment portfolio.
At this point, the decision depends on your confidence, interest and ability to achieve better performance at lower cost. Although, the rationale for assuming management of a self-directed portfolio can range from loving the challenge and the learning experience to the thrill of taking risks and enjoying the entertainment spectacle of volatile and irrational markets.
If you do decide to start building and managing your own portfolio, it is essential to give yourself some key ground rules related to risk and return, just as you would give your risk tolerance profile and return expectations to your financial planner. Control your impulses with restraining limits on the amount of individual investments and the criteria for risk-reducing diversification. My two overriding guidelines: never more than ten percent of the portfolio in any one investment and never less than fifteen distinctly different investments. Continue Reading…
Like most Canadians, financial advisors exist all over the income spectrum. The major difference is that a disproportionate number of them are highly successful. That should come as no surprise. Many would-be clients are comforted by this and some even seek out advisors who are conspicuously successful because obvious opulence is a double form of social proof. First, it implies that advisor is good at what he does by using the rough correlation that financial success and financial savvy correlate highly. Second, it implies that the client has “made it” by being able to afford the services of someone so obviously brilliant.
In 2020, the top tax bracket [in Canada] kicks in at $214,368, which is just below the threshold for being a one percenter. It’s only natural that smart, forward-looking professional advisors should attract the smartest and most forward-looking clients. One percenters. Similarly, it’s only natural that the most desirable would-be clients should seek out the best advisors.
In some endeavours, merit and talent are difficult to discern. For instance, doctors are paid through public health programs. That likely makes it harder to tell which are good and which are not. Other fields, such as law and accounting, allow for a more conspicuous assessment based on the social norms of affluence. Basically, the superior professionals can signal their desirability through how they dress, the car they drive, the watch they wear and (if it comes to that) the neighbourhood they live in. For better or worse, many would-be clients look to these social cues as evidence of competence and excellence.
Jury is out on whether advisors should be like the client
This exercise could have implications for the provision of financial advice. Many people recommend that, when looking for an advisor, one should actively seek out someone who is more or less like themselves. In terms of demographics, geography, values and the like, the theory goes that there’s simply a better chance of getting a good fit if you look for an advisor who is like you. I don’t know how statistically robust the theory is, but it makes sense intuitively. Of course, online dating sites make similar recommendations and offer similar results. The jury is out.
If you were to divide Canadians into five equal groups, with each representing a 20% portion of income earners, the top quintile (80% to 100%) would be earning more than the national average (on average), the second quintile (60% to 80% would be earning about the same as the national average (on average) and the three lowest groups (0% to 60% collectively), would all be earning lower than the national average.
Top 20% earn half the disposable household income
The top quintile (20%) earn about half of all disposable household income in Canada. Perhaps people in the second quintile (top 60% to 80%) might also want and need advice. It is the second quintile is the most representative of the Canadian average. It’s this second 20% of the people that also represents about 20% of the disposable income. Beyond that point, however, many people are simply living paycheck to paycheck and saving little or nothing for down the road. Continue Reading…
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The BBC Storyworks site in Canada has launched a 6-part series written by me about Covid-19 and the impact on housing and the mortgage industry. The articles will appear weekly, starting this week. Later articles will look at mortgage options, the investing experience following Covid, optimum investment strategies going forward and close with retirement strategies in the age of Covid.
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