Incitec Pivot Ltd T.IPL

RE:Have a plan for investing and follow it

[westcoast2019]

hawk35 wrote: I retired early and have slept good through the last few weeks because I have a plan and I'm sticking to it.

All of my stocks have confirmed the dividend will continue.  For IPL I was prepared to accept a 50% dividend cut because of the future growth potential.  I was surprised there was no dividend cut but the potential sale of storage probably explains why.

I sold Hot.UN and CHE earlier because of the risk.  Turns out I was right.  Wonders will never cease.

I only wihdraw the dividends.  I never touch the stock itself so if the price drops, I really don't care.  I have a special cash reserve that I don't invest.  If the the virus persists for months and some stocks reduce their dividend, I will use this reserve cash.  The reserve will last me 24 months if 1/3 of my stocks reduce their dividend by 50%.

My plan works for me.  I sleep good at night.  And I keep reminding myself that this virus crisis will also pass. 

That sounds like a well thought out plan.

I do similar but have some in precious metals stocks in case of hyper inflation. So far not happening as PM stocks are down but I'm confident they will recover. I have too much PM though and eventually want to lower that to a more balanced proportion of the portfolio.
 
Another difference is I keep some funds in a mutual fund that shorts the market HIX . That way if dividends are cut its usually the case that stock prices are down and HIX goes up so I sell some HIX units to make up the difference to cover lower dividends for a while. I like that better than holding cash as it also goes up to counter the market decline somewhat. I sold some of those recently to make purchases of stocks that went down so I will need to replenish it. I like your plan for a 2 year buffer currently mine is down to about 1 year unless PM stocks rise.