Repeating Based on a Plan (for Easy Income)
What do you do every week? For me it is to wheel the green garbage bin to the street on Wednesday morning. I usually bake a loaf of my gluten free dark chocolate banana bread, and Cindie and I host a small group in our home Sunday evenings. The garbage cart task takes less than five minutes, the banana bread takes about 20 minutes to assemble, and our small group probably consumes about five hours of time, including preparations and hosting the gathering.
I find it both interesting and baffling that we spend more time planning for one-time events or activities and very little time on the activities and opportunities that have long-term implications. Some take months of focused energy to plan a wedding, or several days to set in place their plan for a two-week vacation. Some spend hours planning for a Thanksgiving meal, but neglect other more important parts of their week.
What Can Last?
None of us know how long we will live, but it is likely that many of us will live to our sixties and seventies. When we are in our twenties and thirties we don’t make many plans for those big number years. That is one example of a failure to plan wisely.
Imagine, for example, that you have a farm. You own some sheep and cattle. However, you never really go out into the field to see if your livestock has water or sufficient food. What do you think would happen? Well, there is a slight chance that everything will be just fine, but it is far more likely that you are inviting disaster. That is why I often refer to this proverb: “Know well the condition of your flocks, and give attention to your herds, for riches do not last forever; and does a crown endure to all generations?” Proverbs 27:23-24
Are You a Worried Wisher?
“It takes as much energy to wish as it does to plan.” – Eleanor Roosevelt
I think we need to spend zero time on worry and wishing. Neither really is productive. The interesting thing is that it is possible to rest and respond in wisdom with very little extra energy and time. Take, for example, the way we might spend time considering our investments. During this “series” I want to tell you what my weekly plan looks like and why each piece matters. This is part one.
Activity & Orders
Every week it is wise to visit the Fidelity “Activity & Orders” screen. I do this daily, but weekly is sufficient. The orders section gives me a view of any pending buy limit orders or other orders I have entered that have not yet been satisfied.
Perhaps even more importantly, I want to see the “Activity.” This includes interest that was paid, direct debits from our Fidelity checking account, our Social Security income, Cindie’s pay from her work as a part-time baker, and dividends that were paid. Because I don’t automatically reinvest dividends, the dividends become an opportunity for investing.
The review takes less than five minutes, so I do it daily, but if you do it weekly you will stay on top of the important transactions in all of your Fidelity accounts in one place. Do you have five minutes to do a review that might have long-term implications for reinvesting your income?
Options Income and Activity
If you invest in covered call options or cash covered put options, you will also gather helpful information about your options activities. Each Monday I can see the “Expired Options” in the “Activity & Orders” screen. This gives me a reminder to consider entering a new option trade to gain even more income. This morning, for example, I have expired options for VICI (a put option) and for RIO, QRVO, RPD, and ABR.
Suggestion
Take five minutes once each week to sign on to your Fidelity Investments account and look at “Activity & Orders.” That can help you in one other way. If the stock market is volatile or you are in a bear market, your dividend income will remind you that when others are panic-selling, you should be adding to your quality investments.
Know Your Flocks & Herds 