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Congratulations, Mark! I’m thrilled you’ve found and are following l a strategy that has worked and continues to work for you.

According to this link: https://finance.yahoo.com/quote/SPY/history?period1=15463008... , SPY distributions are down a bit over the past two quarters vs. the same period last year. That suggests that even S&P 500 dividends have been impacted by COVID. So great job of picking companies with dividend staying power and opportunistically reinvesting at attractive prices. Very cool, my friend.

Personally, I don’t think we’re really out of the woods yet. As the weather cools and people spend more time indoors, there’s a risk that case levels could spike again, leading to further shutdowns or an extended reopening timeline. In addition, the bond market remains propped up by the Fed. History suggests that easy money is easy to misallocate. Misallocated easy money is a good way to build up bubbles that eventually burst.

I don’t have a good answer. As a result, the path we’re taking is largely continuing to work the plan we put in place before the pandemic. The only somewhat major change we’ve made is that we opened a Home Equity Line of Credit (but have not tapped it) as something of an extended emergency fund. I am tempted to tap it to pay off our mortgage, which would lower our mandatory minimum payment substantially and our interest rate somewhat. There are two key reasons we haven’t. First is that it would convert a fixed rate loan to a variable rate one. Second is that it would burn through the line of credit, making it unavailable should a real extended emergency arise.

Best of luck to you, my friend.

Regards,
-Chuck
Discovery/HR Home Fool
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