• Nick Heil

Payday Friday

Happy Payday Friday Everyone!

Are you getting paid today?


Well if you're not, I am and I'm quickly going to share with you what I do on my paydays.


We all know Fridays are awesome. For a lot of people the last work day before the weekend and everyone is generally in a better mood. If you throw a payday from your job on top of it then it's a real boost to your day.

In my job, I'm paid bi-weekly on Fridays, so those days are particularly exciting for me as a finance nerd.


Not because I'm obsessed with money (maybe a little, sue me) or am in dire need of the money to fund a weekend full of bad decisions, but because I find the process of thinking about how I'm going to invest a portion of it as an enjoyable process.


I like thinking about how a chunk of this money is automatically going to be invested into my family and I's future. I like thinking about the fact that every time I'm paid, my net worth is increasing and my passive income is growing.


This idea of automatically investing a portion of your money every time you are paid is known as dollar cost averaging in the investing world. However, this post is not meant to be a long educational post, but if you're not dollar cost averaging, then you should be.


This post is more meant to be a quick documentation process. I want to be able to look back on these posts or point someone to these posts so they can get an idea of where my head is at each time I pull the trigger on an investment decision.


Keep in mind, I'm not an investment adviser and my opinions are my own and should not be construed to be considered investment advice.


With that, here's what I did with my payday Friday!


After taxes and an automatic $100 withdraw from my paycheck for my car payment my bi-weekly paycheck came in at $1,666.76.


Of that $1,666.76, I moved $810 of that money into my various Vanguard accounts.


$200 towards my Vanguard Roth IRA account.

$400 towards my one of my Vanguard Brokerage accounts.

$170 towards my other Vanguard brokerage account.

$40 towards my newborn niece's UGMA/UTMA account.


With these funds, I purchased several energy investments. To summarize, I'm pretty bullish on the energy sector right now. As many of you know with the current corona-virus pandemic, the energy sector and oil in particular, is getting absolutely crushed. This month, the price of oil dipped below $0 for the first time in history.


With everyone staying home under government stay at home orders, demand for oil has plummeted. No one is flying, no one is driving or traveling.


All of this on top of the fact that the energy sector has been getting beat up for the last decade. It has dramatically under performed the broader market.


For those reasons, I feel that energy has higher odds of future returns. Valuations are much lower than the rest of the market and I truly believe we will pull through this health pandemic and long-term oil demand will recover.


When it does, so will the price of all these companies currently getting crushed.


So, this morning I bought three different stocks for my portfolio.


Those were Enbridge Inc (ENB), Magellan Midstream Partners (MMP), and Energy Transfer LTD Partnership (ET).


In particular, I purchased a total of 16 shares of ENB, 2 shares of MMP, and 7 shares of ET.


7 shares of ENB were executed at $29.035.

Another 9 shares of ENB were executed at $29.11.

7 shares of ET were executed at $7.25

2 shares of MMP were executed at $39.50


MMP has been a long-term holding for me that I'm adding to. Has always been a great company. ENB and ET on the otherhand are new additions to my portfolio. Without getting into a long investment thesis the basis of those decisions can be summed up in a recent article by Brad Thomas which can be read here:


https://seekingalpha.com/article/4338072-9-yielding-enbridge-is-super-swan-dividend-you-can-trust-in-this-recession


What are you investing in on this payday Friday?





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