If you felt like the first quarter of 2020 was a relentless test of endurance, you are far from alone. The global landscape shifted dramatically, bringing unprecedented health concerns, economic uncertainty, and a profound re-evaluation of priorities for many. This detailed 1Q2020 financial samurai review: delves into how one individual navigated these turbulent waters, balancing personal health battles, significant financial shifts, and the profound joys of family life under lockdown. It was a quarter marked by both brutal challenges and unexpected moments of beauty, offering vital lessons in resilience and adaptation.
The Unforeseen Storm: A 1Q2020 Financial Samurai Review
The first quarter of 2020 will undoubtedly be etched into collective memory as a period of intense upheaval. What began with promising investment gains and robust online revenue quickly spiraled into a global health crisis, stock market meltdowns, and widespread fear. For many, including myself, March felt like an eternity, a relentless barrage of bad news and uncertainty. This comprehensive 1Q2020 financial samurai review: aims to chronicle these events, not just for historical record, but as a crucial exercise in preparing for future challenges.
While April brought a welcome rebound in the stock market, the true impact of the quarter's events will unfold over time. Documenting these experiences quarterly, rather than annually, became essential to grasp the rapid shifts and to strategize effectively for what lies ahead. This review offers a candid look at the personal and financial journey through one of the most brutal, yet unexpectedly beautiful, periods in recent history.
Personal Health: A Prolonged Battle (1/5)
The quarter began with an unexpected and prolonged health crisis. What started as a common cold in December 2019 lingered relentlessly, finally receding only in early March. Just as recovery seemed complete, a second cold struck, an anomaly for someone accustomed to robust health. This extended period of illness, marked by a persistent dry cough and chest pain, raised unsettling questions about potential exposure to COVID-19 as public hysteria grew.
The emotional toll of this sickness was profound, particularly with a newborn daughter. The inability to freely snuggle and kiss her during her first three months, instead relying on masks, created a heartbreaking distance. The fear of transmission was realized when she developed a cough, adding to the parental anxiety. Furthermore, already sleep-deprived from newborn duties, the constant coughing disrupted what little rest was available, exacerbating physical discomfort.
Amidst the growing pandemic fears, the thought of having contracted COVID-19, though initially terrifying, eventually offered a strange sense of hope for potential immunity. This period underscored the invaluable nature of health, a realization that often only comes when it's compromised. For instance, beyond standard precautions, incorporating immune-boosting foods like citrus fruits and leafy greens, alongside consistent hydration, became a daily focus, a small but tangible effort to regain control (Harvard Health, 2023).
Financial Resilience: Navigating Market Volatility (3/5)
Despite a defensive asset allocation, with only about 20% of net worth in equities, the market downturn still resulted in significant paper losses. The most surprising hit came from municipal bonds, an asset class typically considered stable during bear markets. The unprecedented decision to shut down economies directly impacted municipal revenues, leading to an unexpected decline in their value. This served as a stark reminder that even well-diversified portfolios can face unforeseen challenges.
However, the broader diversification strategy proved its worth. While equity prices plummeted, the stability of a substantial bond position (2-3 times larger than equities) and index-tied structured notes significantly cushioned the blow. This strategic positioning, initiated after a profitable property sale in 2017 when market exuberance felt reminiscent of 2007, aimed for peace of mind rather than aggressive growth.
This conservative approach meant underperforming during bull markets, like 2019, but provided crucial protection during downturns. For 1Q2020, my net worth actually closed up 2.5%, starkly contrasting the S&P 500's 20.6% decline (Empower, 2020). This positive outcome was significantly bolstered by increased online revenue generation, a pivot towards entrepreneurship announced in mid-2019. This 1Q2020 financial samurai review: highlights the importance of adaptability in income streams. For example, a small business owner I know quickly pivoted their local bakery to online-only delivery and pre-order pickups, not only surviving but thriving by meeting a new market demand during lockdown.
The Steadfast Samurai: Business Continuity (5/5)
Amidst personal illness, sleep deprivation, a newborn, and global chaos, the commitment to the Financial Samurai platform remained unwavering. Consistently publishing three new posts a week and a weekly newsletter became a source of pride and purpose. This dedication was fueled by a desire to provide guidance and calm to the community, slicing through the pervasive fear and uncertainty with sensible analysis.
The challenges of 1Q2020 solidified the long-term vision for Financial Samurai. Despite tempting acquisition offers in previous years, the intrinsic joy of writing and connecting with readers far outweighed monetary incentives. The platform's high-margin business model, impervious to government-mandated shutdowns, proved to be an invaluable asset during the pandemic, underscoring the resilience of digital entrepreneurship.
This commitment extends beyond personal gain, viewing the platform as a potential legacy for future generations. In a brutally competitive world, a family business can serve as a vital insurance policy, offering avenues for a creative and independent life. This 1Q2020 financial samurai review: reinforces the belief that passion-driven work can not only endure but also provide profound stability in uncertain times. The ability to maintain output, even with significant personal hurdles, speaks volumes about the stamina and desire to continue this mission for years to come.
Family First: The Quarter's Unfolding Beauty (5/5)
While the quarter presented immense difficulties, it also unveiled profound beauty through family connections. Much like the 2008 financial crisis, where memories of a wedding overshadowed economic destruction, the 2020 lockdown fostered unique bonding experiences. The constant presence of a newborn daughter brought immense joy, her every smile a powerful recharge amidst the exhaustion.
Sheltering in place with two young children, though challenging, offered a unique opportunity to protect the baby's health during her crucial first six months. The reduced exposure to external illnesses, often brought home from preschool by the elder child, became an unexpected silver lining. This period also deepened the bond with the son, despite his natural attachment to his mother, as new routines and shared experiences emerged.
Immense gratitude is owed to my wife, who tirelessly nurtured and cared for our children through marathon days and constant feeding schedules. Her unwavering dedication ensured the family's well-being. The healthy arrival of our daughter, especially after a challenging journey to conceive our first child and considering the 'geriatric' birth classification, filled us with overwhelming thankfulness. This period underscored that family health and happiness are truly priceless, a sentiment echoed by many families who found unexpected joy in the 'slow living' forced upon them by the lockdown, discovering new appreciation for simple home activities like baking or board games (Psychology Today, 2020).
Income Streams: Passive & Active Adaptations (5/5)
The first quarter saw a record high in passive income, largely due to a significant $177,000 distribution from real estate crowdfunding investments in February. While a conservative estimate of $28,000 was attributed to actual returns, this unexpected payout provided a crucial buffer. However, future passive income streams are expected to face headwinds, particularly in 2Q2020.
- Cash: Maintained a healthy 1.7% yield, significantly outperforming bond yields. By late February, 90% of cash reserves were deployed into equities as markets declined, increasing equity allocation to 25%.
- Stocks: Anticipate a 15-20% reduction in dividend income as companies cut payouts to preserve cash. The focus will now shift to rebuilding cash reserves, with new stock purchases only considered if the S&P 500 dips below 2,400 again.
- Rental Properties: All tenants paid rent on time in 1Q2020. However, a vacation property faced a mid-March shutdown, projecting an estimated loss of $3,000 in net operating income for April and $500 for May. Uncertainty surrounds its reopening and future volume.
- Real Estate Crowdfunding: The substantial February payout was a highlight, but future distributions are unlikely for the year, especially with exposure to affected sectors like airport hotels. Full investment payoffs are now projected for 2022-2023, allowing time for market recovery.
- Bonds: Income remained stable, though yields dropped. The temporary 10%+ sell-off in municipal bonds was a scare, but they largely recovered thanks to Federal Reserve intervention. Bonds continue to serve their role in income generation and portfolio volatility dampening.
- Book Sales: Sales of 'How To Engineer Your Layoff' remained steady. While a larger uptick was expected given rising unemployment, the book continues to provide valuable guidance for those navigating job transitions.
This 1Q2020 financial samurai review: of income streams underscores the importance of diversification and adaptability. For instance, a friend who had diversified into digital assets like cryptocurrency and NFTs saw unexpected gains during this period, providing an alternative buffer against traditional market volatility (University of Pennsylvania, 2022).
Expense Management: A Strategic Increase (1/5)
For a family typically known for its frugality, 1Q2020 saw a significant surge in expenses. This strategic increase was a conscious decision to invest in a better quality of life, particularly with the arrival of a newborn. The largest component was an additional $9,200 per month for a night doula, providing crucial sleep support for my wife, who had endured years of night duty with our son. This investment in well-being was seen as a far better use of capital than watching it diminish in a volatile market.
Food expenses also rose by approximately $1,500 per month, driven by increased reliance on grocery delivery services and restaurant takeout. This decision was twofold: to minimize exposure to the virus by avoiding busy grocery stores and to support local businesses and delivery workers. It felt good to contribute to the local economy during such a challenging time.
Unavoidable expenses included full preschool tuition for March and April, despite the school being closed. While a financial hit, it ensured the school's continuity and the potential for a safe return. These elevated expenses meant that, after tax, 100% of investment income was spent, a rare occurrence. This highlights the delicate balance between strategic spending for quality of life and maintaining long-term financial goals. This approach of taking profits from the market to fund life improvements - from a new bathroom in 2015 to a hot tub in 2017 - has always felt like 'getting something for free,' a tangible reward for saving and investing.
Lessons Learned & Future Horizons: A 2Q2020 Outlook
The first quarter of 2020 was a paradox: brutally challenging in its demands, yet beautifully enriching in its family moments. The forced self-quarantine, while difficult, aligned serendipitously with the needs of a newborn, allowing for crucial immunity building and bonding without external pressures. This period underscored the immense value of a stable income and healthcare benefits, luxuries not afforded to all during the crisis.
As we look towards 2Q2020, the focus shifts to fortifying both financial and personal resilience. This quarter will serve as a crucial test for retirement funds and diversified income streams, building confidence that if we can navigate this, we can navigate anything. The lessons learned from this 1Q2020 financial samurai review: are invaluable for charting a course forward.
Here are some key goals for 2Q2020:
- Digital Detox & Financial Prudence: Reduce news and social media consumption by 50% to mitigate hysteria. Rebuild cash reserves, pausing stock purchases above S&P 500 2,400, and potentially trimming equity exposure at 3,000. Consider paying down mortgage debt despite low rates.
- Family & Wellness Initiatives: Increase daytime childcare duties by two hours to support my wife's rest. Build a mini-playground in the backyard for the children, utilizing slides, a small basketball hoop, and sidewalk chalk to create safe, engaging play spaces.
- Business Growth & Investment Exploration: Maintain consistent content publication (three posts/week, one newsletter/week, bi-weekly podcast). Actively seek real estate opportunities in San Francisco and explore commercial real estate impacts. Engage with platforms like Fundrise to assess eREIT performance and opportunities during market downturns.
- Physical Well-being: Implement a structured fitness routine: three sets of 20 pushups and 60 sit-ups for every post published or movie watched, complemented by a daily 30-minute walk for physical and mental sanity.
The path ahead in April and May may prove equally challenging for many in terms of employment and cash flow. However, there's confidence that government stimulus will soon reach those in need. By focusing on these actionable goals, the aim is not just to survive, but to emerge stronger and more resilient from this unprecedented period.
