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StockTalk
StockTalk

Season 1, Episode 6 · 1 year ago

financial planning tips for coronavirus

ABOUT THIS EPISODE

This podcast covers financial planning tips for coronavirus

Good evening, everyone, so today'sMarch twenty third and in this podcast, I'm not going to talk about stockmarket. A lot of people are asking me financial planning tips for Coronavirus. It is an hard time around there out there. People are losing jobs. Theycan't go to work, they can't spend much because of that. So The Times are tough,so I thought of doing a podcast on what are the financial planning tapes forCorona Virus. So, first of all we don't know how longthis lockdown will. Last. There is a logdown in North America right now.There is a lockdown in the countries like India in the entire Europe. So wedon't know how long this locktown will.

Last. My estimation is until we find acure, this locktown will be a part of our life, so in such kind of situation,cash becomes extremely important. So cash is the king. So a financialplanning tape that I would suggest us at least half three months of expensesin liquid cash try to have at least three months of expenses in liquid cashready with you, because you don't know, what's going to go wrong, you may fallsake. You may be hospitalized, we don't know any of that, so just to cover abase bare minimum have three months of living expenses in cash in your account.Now, if you don't have that there are ways to get around it try to accumulateas much cash as you can, but if you can't then have a line of credit, whatis a line of credit? It's like an on demand loan that is extended by a bankfrom which you can withdraw. So you...

...would be charged interest only on thethings that you would wraw. So if I am extended a line of credit of twentythousand and if I don't use that I'm not just interest on it, but if I uselets sa five thousand out of that, then they will start charging interest to meso have a line of credit for security purpose. I would recommend at leasthaving fifteenthousand dollars a line of credit, preferably to be a secureline of credit. Secure Line of credit means you have some asset against withyou're drawing that line of credit. For example, if you own a house, have aline of credit against that house or if you own, some stocks or investments orgics have a line of credit against them, it's better to have it secured becausethe interest rates are lower, but if you can't man it secure at least havean unsecured line of credit for at least fifteen thousand. Why is lion ofcredit important? Because it's like you...

...can withdraw from it instantly? It'slike cash and you can use it and Brut. There is a good saying in theworld. If things are supposed to go wrong, they will go wrong so try tocover all your basis with it then create a budget so focus while creatinga budget. Everyone should have a normal budget where they spend something onentertainme and basic necessities and mortgage payment, and all of that, buthave a very basic budget right now, so focus on spending on basic necessities,cut down all nonessential spendings put of all expensive purchases, so do notspend much money right now on expensive stuff and whatever your plans are tobuy expensive stuff, put them off those things you can always buy after this.Chris is end. We don't know how long this crisis wis going to last so try tofocus only on basic necessities. Be...

Frugal with your money, be extremelyfrugal, with your money only spend on basic necessities. Basic necessities isfood, not even clothing. Right now, then dealy, your mortgage payments,that's a good tape that I can give you. If you have a mortgage and money isgoing towards mortgage, you can delay your mortgage payment. Most Canadianbands have floated that idea. It's not easy to get through their coll centersafter I've been trying for the last two days so have patients and get on itright away and while deglaying your mortgage, I would recommend you to payinterest. onely payments. Do Not Stop your payments towards mortgage, becauseif you are not paying interest, that is interest accumulate and then the bankwill charge interest on interest. It gets added to your principle, so itballoons the mortgage up. So if you're not payinginterest payments it the mortgage keeps...

...on increasing. So don't do that. Don'tstop your payments, but ask her. Ask The band whatever bank you bank, withATB RBC BMOR. Anyone ask them for an option whereby you're only payinginterest for the next three months or next six months right. So what it willdo is it will freeze your morgage morgage is not going up because you'repaying interest, so it's like the morgage is frozen and you're justpaying principal is just paying interest you're, not paying theprincipal amount, Principale amounter, saving right that principal amount. Youcan keep it in an separate account if nothing, if everything's normal afterthree months, then pay BA principal back to the bank. So pay only interest right now do notpay principal if possible, delay your student lown payment. So Albert. I justannounced that six months students...

...don't have to pay their student loans.They can qualify for a deferal. Most of the provinces are also starting. Thoseplans so have a eye out for them do not pay student loans. If you can defereverything, especially for the student population with the younger populationwhich doesn't have much disposable income, it's crucial to havesustainancs right now then claim ea and also check provincial payouts because,along with Federal Helth, there is also provincial help that is given out.Alberta has a provincial help. You can go to Alberta government's website andclaim for a provincial help of around thousand dollars. That is in additionto the federal health that as being floated around so most of the provinces,have it so have an eye eye out for them, so unemployment, insurance and gettingmoney from federal sources, wherever you can, is extremely important review.All your subscriptions so check your...

...credit cards cancel out whateversubscriptions. You don't need and you'll be surprised of how manysubscriptions these days we have so you may have a subscription for some musicservice that you don't listen to anymore. You may have a subscription tosome magazines or gym. membershap of the gym is going to be closed for thenext three months. It doesn't make sense to keep on paying gym membershipso cancel whatever subscriptions. You can for the next two or three months put off in this is important. Now lotof stocks are traded at very good values, so the valuation on those tocksare extremely good, but I would say that, if Youare, covering all the basisthat we have talked about having enough cash having secured line of credithaving enough fund for sustainants having differing the Morgagis, if youhave done all of that, then you can start thinking about investment. Butinvestment is the least priority item...

...right now. Sustainance is the mostimportant thing you have. People were young or anyone. SUSTAINANCE is moreimportant than wealth, so focus on sustainencs right now do not focus muchon investing. Those tolks are at very good values. Tech companies aretradated very good and attractive valuation. Some bands are trading atvery good, attractive valuation, but that becomes secondary, so put offinvesting if you don't have to, and if you have covered all the basis, thenyou can start thinking about investing but important stuff in west in smallchunks, so keep Gash right now. In start, investing in very small chancedo not put all your cash into investments start investing in smallerchunks instead of big chunks, okay, so this podcast, I just wanted togive you a few tips. What you can do...

...claim all the help that is avalablefrom the government. If you're in states check out the Federal Burget.What process you need to find out if you're in Canada look at unemploymentinsurance. Look at provincial helps delay your mortgage payments payinterest only if possible, otherwise delay the payment completely. Do Notmence delay your student loans. The right cash is the king right now.Sustainance is important. Keep enough cast three months of expenses in liquidcash at least have a big line of credited against your asset, ifpossible, but if it is not possible just an unsecured line of credit, sothese five things focus on having an unsecured or a secure line of credit,claiming all the healt that is available from the government, thenfocusing on differing mortgage payment. Rent payments, wherever you can differ,payments right now focus on interest. Only payment cashes king have threemonths of expenses, then start...

...investing in smaller chance if possible,sustainance is more important than investing, but if you want to startinvesting in smaller chunks. Thank you for listening to day, see youto Morrow in another podcast.

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