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How world travellers are adapting to Covid restrictions

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Japan Airlines flight crew departing from Dallas in March, 2020. Dale Knight is in blue, without the mask.

By Billy and Akaisha Kaderli

Special to the Financial Independence Hub

The COVID restrictions have been very difficult for those of us world travelers in the Early Retirement Community. We have had friends stuck for months in Europe, The Philippines, and Peru, among other countries.

We who travel as a lifestyle have found our footloose approach to life… encumbered, to say the least!

Here we have a travel update from one of our World Traveling Buddies, Dale Knight.

Take a look.

RetireEarlyLifestyle: You have been a world traveler now for decades, Dale. How have these COVID travel restrictions affected your traveling lifestyle?

Dale Knight: It’s been devastating, as I’m sure it has for anyone who is passionate about travel.

Since March, I’ve had to cancel six trips previously booked through the end of 2020. I had plans to travel to SE Asia, then Australia and New Zealand…  a Europe trip in August that included London, the Balkans and Paris… German Christmas markets in November, skiing in Japan in December.

All cancelled.

It’s as if a year of my life has been snatched away.

RetireEarlyLifestyle: Where were you when COVID started to shut the travel world down?

Cherry blossom season in Kyoto, Japan

Dale Knight: In mid-March, I flew to Japan with plans to spend four days visiting friends in Sapporo before continuing on to Thailand. I was in Sapporo when Thailand abruptly closed its border to all International arrivals.

What to do?

I flew to Tokyo for a couple of days, then took the train to Kyoto, where the cherry blossoms were in full bloom. Perfect timing! It was delightful, and everything at that time felt “normal” in Japan. People were out and about, bars and restaurants were open.

At the same time, the US was seeing a surge in COVID cases, and I began to hear from friends in Dallas about a strict lockdown. They warned that I might not be able to get back. I debated on whether or not to just stay in Japan but decided to return to Dallas.

That was not the best decision. In hindsight, I’d rather have spent more time in Japan.

RetireEarlyLifestyle: Have you done any traveling recently? Where have you gone?

Dale Knight: I tried a couple of road trips in the US  … The Oregon coast in June and Colorado in August. Those trips sort of scratched that travel itch, but in many ways it was still very frustrating. Hotels didn’t provide housekeeping services for one thing.

Traveling solo, I like to find a local bar or pub and chat with the locals. That is very difficult when everyone is behind a mask, and you have to sit off by yourself. The lone exception was in Laramie, Wyoming, where I happened upon a small friendly bar where nobody was wearing a mask. Some might think risky, but to me it was refreshing.

Twice I have gone to Mexico, meeting up with friends in Puerto Vallarta and then to the little beach town of Chacala to meet up with you and the Chapala gang. Just last week, I returned after a month in Mexico. – Two weeks with you and Akaisha and friends in Chapala. It was a wonderful time.

The gang’s all here in Chacala, Mexico

 

RetireEarlyLifestyle: Is the “whole world” shut down or only certain places?

Dale Knight: For Americans, it does seem like the whole world is shut down. Australia, New Zealand, and almost all of Asia are completely off-limits, probably through the end of the year. Same with most of Europe. There are a few exceptions like Croatia, Ukraine, Serbia, Belarus – each is open with different entry requirements, such as needing a negative COVID test within so many hours of your departure or arrival.

Turkey is also open to Americans, and Tanzania in Africa. Several Caribbean Islands are open as well as Brazil and Ecuador in South America. At the same time, many US states require quarantine for out-of-state visitors and Canada is closed to Americans.

It’s a constantly changing dynamic and I follow blogs as well as the IATA Travel Centre website to stay up-to-date.

RetireEarlyLifestyle: How do you see the future of travel?

Dale Knight: I’m afraid it will be a long time before we return to the way it was just six months ago.

In 2019 a record 1.5 billion people worldwide traveled internationally. This year, the numbers have fallen off a cliff, with estimates of up to 80% decline. Countries that are heavily dependent on tourism such as Thailand, have made the choice of safety over the economy. They are being overly cautious about reopening borders.

I think we may have to accept COVID testing and quarantines as part of our traveling future. If a vaccine is ever developed, you might have to carry a card much like the Yellow Fever vaccination card, to show you are ok.

RetireEarlyLifestyle: Is it easier in some places to get around versus other locations?

Dale Knight: When I was in Japan, it was easy to get around. Flying to Mexico and getting around Mexico is easy.

However, within the US, right now I cannot go to several states — mainly in the Northeast — without quarantining for 14 days. Before embarking on a road trip, I had to check each state’s restrictions to make sure I wouldn’t have to isolate in a hotel room. Attempting to go to Europe is difficult and even to those handful of countries allowing Americans, it requires planning, testing and possible quarantine.

RetireEarlyLifestyle: How has it been in the airports you have flown? What is different? Both flying into Puerto Vallarta, Mexico and out of Guadalajara, Mexico.

Dale Knight: Airports are pretty busy. People are flying and going places. The main difference is that the wearing of masks is strictly enforced both at airports as well as on the aircraft. Food and beverage service is minimal — or not at all — with the US airlines. My most recent flight was with the Mexican airline Volaris, from Guadalajara to Dallas Fort Worth. Flight attendants come through the cabin with a cart of beverages and snacks. Immigration was a breeze at both Puerto Vallarta and Guadalajara. Continue Reading…

6 Recession-proof Careers for 2020 graduates

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By Sia Hasan

Special to the Financial Independence Hub

It seems safe to assume that 2020 has been considerably different than what you expected when you first started your higher education. Back then, your future may have seemed assured. Though things are more uncertain now, do not give up hope. There are still opportunities available to you.

Even if there were not a pandemic, chances are good that you would not have been able to acquire your dream job immediately upon graduating anyway, due to your lack of experience. While the economic fallout of COVID-19 is troubling in many ways, this may be an opportunity for you to pursue a new career option that you might not have thought of before, one that offers you more stability or teaches skills that you can transfer to your chosen field. Here are some of the top recession-proof career options for newly minted graduates:

1.) Attorney

If your dream is to become a Phoenix criminal defense lawyer or attorney in another practice area, there is no need to give that up. Granted, your career path may have to take some detours as the bar exam has been rescheduled in some states. Nevertheless, there will always be a need for people with in-depth knowledge of the law to represent the interests of ordinary citizens.

2.) Teacher and Teacher’s Aide

Even before the pandemic, traditional classroom education was adapting to new technologies that allow for distance learning. Nevertheless, someone will always have to be there to provide instruction to students, whether in person or online. Distance and on-demand learning offer advantages such as flexible scheduling to teachers as well as students. Granted, if you wish to pursue a nontraditional career path in education, you must make sure that not only your teaching credentials but your technological literacy levels are in impeccable order.

3.) Health Care Professional

The medical field encompasses a broad range of professionals, not only doctors and nurses but physicians assistants, lab technicians, physical therapists, and many more. There are also health care professionals not involved directly in patient care, such as administrative support staff and medical records technicians. All have a vital role to play in providing adequate health care while protecting patient safety.

Health care professionals will still be in high demand even after the pandemic eventually subsides. There is always a need for patients to receive treatment for medical conditions. Even before COVID-19, health care professionals were aggressively sought after. Physicians and other professionals belonging to the baby boom generation are nearing retirement age, and more providers are needed to care for boomers as they become more vulnerable to age-related disease and disability.

4.) Actuary

You might be surprised that financial services are in greater demand during an economic downturn. However, when one’s financial situation is less stable, it becomes more important to keep careful tabs on it. Continue Reading…

Less Coffee demand in the world, while Office Workers stay home

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Kyle Glen Unsplash

By Emma Williams

Special to the Financial Independence Hub

Are you currently working from home? If so, have you noticed changes in your daily coffee consumption after your usual work schedule was placed on hold?

COVID-19 has changed many aspects of working individuals’ daily lives, including their coffee routines. Players in the coffee industry have been in survival mode as their creativity is needed more than ever to stay successful in today’s business landscape. Unfortunately, for those in the office coffee service industry, the pandemic is taking a significant toll, making it increasingly important to understand changes in consumer behavior.

The office coffee service industry is experiencing a 40 per cent revenue loss, which is the greatest setback in the industry’s history. The Freedonia Group, a market research organization, does not expect a recovery in the coffee service industry any time soon with the recent ongoing changes.

One example of a critical change is when the Centers for Disease Control and Prevention urged employers to close off shared spaces and invest in single-serve items for their workers as opposed to communal items, such as coffee pots.

Closing offices and pushing workers to instead be productive from home furthers the shift in coffee consumption in the face of COVID-19. More than 90 per cent of people who are working remotely end up drinking homemade brewed coffee. Instead of drinking coffee at the office, consumers are now ordering coffee subscriptions and purchasing online more than ever. By selecting different blends and customizing their coffee subscriptions, they are attempting to achieve the “away from home” quality of the coffee.

U.S. office workers’ coffee usage during the lockdown

These direct-to-consumer sales completed through coffee subscription, mail-order sales, and delivery is the best way for companies to tap into new areas of growth in the office coffee service industry. Regular instant coffee will no longer satisfy coffee drinkers as they work from home. Compared to the February to March period, subscription sales were up by 109 per cent during the March to April period. Also, in comparison to March 2019, packaged coffee sales in the U.S. in March 2020 were up by 70 per cent. With a focus on at-home consumption, the negative impact will not be as detrimental because of the limited elasticity of coffee demand.

Emre Gencer Unsplash

During the pandemic, subscriptions have become increasingly popular. Many companies are seeing five times more daily subscription sign-ups now versus pre-COVID-19. They are also noticing increases in subscribers who log back on to repurchase bags of coffee that they enjoyed. Subscription growth is on the rise and continues to deliver above-market growth. These increases can be explained by the convenience subscriptions bring to coffee drinkers. By investing in options that can be delivered directly to consumers’ homes, busy workers can continue their coffee drinking routine.

The quality and convenience of direct-to-consumer sales are not the only reasons subscriptions are appealing during the lockdown: safety precautions play a major role too. Going out in public spaces during a pandemic feels risky and uncomfortable for many people. When people do go out, they prefer to spend as little time out as possible. Continue Reading…

8 investment hacks to become the next self-made millionaire

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By Lachlan Malone

Special to the Financial Independence Hub

It is the desire of many people to be rich but unfortunately, not everyone would be able to achieve that except those who take conscious steps to do so.

For one to become a self-made millionaire, it will require making certain sacrifices and conscious efforts in order to realize it. Granted that one can become a millionaire through inheritance or by winning a lottery, but it’s unlikely the majority of people will have such opportunities. Here are 8 ways through which you can successfully become a millionaire.

Always invest in You

The importance of investing in oneself has become a popular cliché but it can’t be overemphasized because it’s crucial in helping one to achieve other vital needs. When you fail to invest in yourself adequately, you stand the risk of losing all other investments you made elsewhere.

There are many ways through which you can invest in yourself, as listed below:

  • Invest in your mind; people often forget to invest in their minds but that could prove costly in the long run. You can invest in your mind by reading constantly. Aside from helping you gain more knowledge, reading will equally sharpen your brain and help to guard against deterioration. Another way is through meditation, which will help you to relax and focus.
  • Invest in your body; this is as important as investing in your mind. Neglecting your body can have disastrous consequences. Ways through which you can invest in your body include exercise, regular checkup, adequate sleep, eating healthy foods, avoiding bad habits like smoking, alcoholism etc.

Make a monthly Budget Plan

Basically, making a budget plan entails creating a practical analysis on how you hope to make your expenses. This plan will enable you to proactively decipher if you have the capacity to carry out certain projects or not. Through your budget plan, you can easily prioritize areas to spend more or less as well as tasks to do at the moment or in the near future.

A budget plan will help you to manage your resources efficiently and effectively, and equally help you to make the right choices. A good budget plan can ultimately help you to accumulate wealth.

Check your achievements today

In a fast paced world like ours today, people tend to be in a perpetual race in trying to pay the bills, meet work obligations, complete a course/program, earn more money, climb the ranks etc.; all these activities can occupy their time so much that they hardly sit back to take stock.

It’s important to make periodic assessments of your aims and objectives as well as to take stock of all the things you’ve achieved so far. You need to cut yourself some slack on how far you’ve gone and the achievements you’ve made while self-motivating yourself to continue climbing the ladder of success.

Find a right Business

The type of business you do could potentially make or mar your chances of becoming rich. Fact is some businesses are more profitable than others. Similarly, some businesses are more risk prone than others, and some are more demanding than others. Continue Reading…

Retired Money: How Vanguard’s 4% targeted payout on VRIF makes it easier for retirees to draw income

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My latest MoneySense Retired Money column looks at Vanguard Canada’s new targeted 4% annual payout vehicle for retirees and near-retirees, provided by its new VRIF ETF. You can find the full article by clicking on the highlighted headline: The lowdown on Vanguard’s Retirement Income ETF: can you rely on its 4% payout target?

The Vanguard Retirement Income ETF Portfolio [VRIF/TSX] started trading Sept. 16th and offers retirees and near-retirees a 4% targeted — as opposed to guaranteed — payout. See also the Hub’s republication of Robb Engen’s preview on VRIF that appeared first on his BoomerandEcho site.

Positioned as a “Decumulation” product for retirees and near-retirees, it’s probably no coincidence that the 4% target is nicely in line with the long-established 4% Rule discussed on the Hub and MoneySense earlier this summer.

While a targeted return is NOT a guarantee – unlike the guaranteed but puny rates paid by GICs these days – Vanguard expects it will attract a fair amount of money from income-oriented investors suffering sticker shock when their GICs mature. Currently, many 1-year GICs pay around 0.5%, ranging from as little as 0.3% to no more than 1.1%. Even going out to 5-year terms, they’re typically paying only 1.4%, ranging from under 1% to 2% in the best case.

Technically, those GIC returns are “guaranteed”  but a cynic might say they’re guaranteed to lose money on an after-tax, inflation-adjusted “real return” basis. Based on recent statements by the Bank of Canada and US federal reserve, this is not likely to improve before 2023. In the UK there are even renewed whispers of negative rates.

Of course, to achieve the 4% targeted payout, investors still have to bear some stock-market risk. VRIF consists of eight existing Vanguard stock and bond ETFs with an asset mix of roughly 50% stocks and 50% bonds.

VRIF has much lower fees than comparable income mutual funds and income ETFs

Monthly income mutual funds and ETFs have been around for years but as is typical, Vanguard aims to be the low-cost leader in the category. With such tiny returns from the fixed-income component, those costs are an important determinant of how much money is left for investors. The full MoneySense article recaps the fees relative to existing income mutual funds and income ETFs. Continue Reading…