A Life Well Planned - Episode 4: Navigating a New Normal

In this latest episode of "A Life Well Planned," we rejoin Megan and Josh in the year 2021 as they face the challenges and opportunities presented by a world still recovering from the COVID-19 pandemic. Megan’s and Josh's coffee business, Rose Coffee Company, took some tough hits during the pandemic, but they're determined to bounce back stronger than ever. Their 17-year-old daughter Charlotte has received exciting news of a full scholarship to UCLA, adding a new dimension to their financial planning.

As they navigate the uncertain economic landscape and supply chain disruptions, they seek guidance from their trusted Raymond James financial advisor, Andy. With Andy's expertise, they explore strategies to secure their financial future, including leveraging their real estate assets, managing interest rate risks, and preparing for potential inflation.

Join us on this episode of "A Life Well Planned" to witness Megan’s and Josh's resilience, adaptability, and unwavering commitment to securing a prosperous tomorrow for their family and business. Tune in to gain valuable insights into financial planning in a post-pandemic world and discover the power of strategic thinking in uncertain times. Listen on your favourite podcast platform for expert financial advice and heartwarming family stories.

  

 

Transcript

Opening music --

Narrator: Looking to pass down some of your hard earned wealth? Just beginning to invest and looking to provide the best life possible for you and your family, but don’t know where to start? Are you looking to create a road map to your retirement? Then you’re in the right place. Welcome to “A Life Well Planned,” the Raymond James podcast that follows a family just like yours as they plan out a smart and savvy financial path to a prosperous future.

Music Transition --

Narrator: Last time we met up with Megan and Josh, it was 2012 and the two were expanding their ever-growing coffee business. The year is now 2021 and the world has changed quite a bit since then. Canada and the world are just beginning to pull out of the COVID-19 pandemic. The past year has been hard on everyone, and Megan and Josh’s business has taken some tough hits. But things are starting to look up, as their 17-year-old star basketball player daughter Charlotte is anxiously awaiting university acceptance letters....

Static of channels changing --

Newscaster: Vaccines for the COVID-19 virus are finally being distributed throughout the country --

Newscaster 2: Prime Minister Trudeau today announced the first phase of lifting travel restrictions --

Newscaster 3: In the United States, supporters of President Donald Trump stormed the Capitol Building, demanding the results of the 2020 election be overturned --

Newscaster 4: Unprecedented rain caused by an atmospheric river has brought a torrent of floods to Southern British Columbia --

EXT. Megan and Josh’s home

The sounds of Rory (15) dribbling a BASKETBALL. He’s joined by his sister Charlotte (17).

Charlotte: What up, nerd?

Rory: Hi.

Charlotte: You know you don’t have to wear your mask outside, right?

Rory: I know. But even if you’re outside you can still get it if you’re talking really close to someone.

Charlotte: Oookay Mr. Epidemiologist. We get it, you’re like, obsessed with diseases.

Rory: All I’m saying is you have a tendency to talk REALLY close to people.

Sound of her stealing the ball.

Charlotte: Oh, well now I got your ball. Can’t get distracted, bro.

Rory: It’s not a fair game when you’re playing against someone with like, a whole basketball scholarship.

Charlotte: Don’t jinx it, dude. Not yet.

They pass the ball between them.

Rory: Are you scared?

Charlotte: What? Of Covid?

Rory: No, of going away.

Charlotte: No. Not really. I mean, maybe a little. I’m afraid I’ll miss people. Not you though, I’m mostly just glad to get away from you.

Rory: Nice.

Charlotte: Oh my God, come here, you know how much I love my wittle baby brother. Gimme a hug.

Rory: Stop. You know I’m going to have to work at the stores like, double now.

Charlotte: That’s because they’re grooming you to take over one day.

Rory: I think I’d like to just be 15 for a little while.

Charlotte: Yeah. I know. Well, tell them you don’t want to, that’s what I did.

Rory: Yeah, but dad is easy on you.

Charlotte: Not mom though. Whatever, soon you’ll be out of here too and you can join the business, not join the business, become a doctor, become a monk, up to you! Oh look, it’s the mail man! (to mail man) Hey, mail man! You don’t have to put it in the box just give it to me. Thanks, I appreciate you as an essential worker!

INT. Megan and Josh's home

Josh and Megan are discussing business in the kitchen.

Josh: They’re saying we won’t be able to get any of the materials until July at the earliest. Everything’s backed up.

Megan: That’s ridiculous. I’m going to call them.

Josh: Why? I just talked to them.

Josh sighs.

Josh: Fine, call them.

Megan: I’m sorry. I’m sure you tried your best.

Josh: It’s okay.

Megan: I didn’t mean to imply --

A door flings open as Charlotte and Rory rush in. A dog barks.

Charlotte: Something came from UCLA!

Josh: Open it, open it!

Rory: Open it!

Megan: Everyone take a quick breath here, and remember that no matter what we’re extremely proud of you --

Charlotte: I got in!!

They all cheer!

Josh: You got in!

Megan: Oh my God, honey, congratulations.

Josh: Congratulations, kiddo.

Rory: Dad, are you crying?

Josh: No! ... Yes.

Megan: Wow, Charlotte a full ride! This is a huge scholarship.

Josh: This is incredible!

Charlotte: Oh my God.

Rory: So they pay for everything?

Megan: All of the tuition and school fees looks like, I think that just leaves things like books and living expenses.

Josh: Thank God we set up that RESP.

Megan: But you have to keep your GPA above 3.0 or they take it away!

Charlotte: I know, I know.

Josh: UCLA. Man. We might have to try and open a store there.

Charlotte: Well, it’s not too late to apply to schools in, you know, Siberia.

Josh: Funny. Note the scholarship doesn’t cover housing.

Megan: Not now, you two!

Josh: I’m kidding, I’m kidding. Though that reminds me, I do want to give Andy a call. But for now, who wants ice cream?

They cheer!

INT. Josh and Megan’s home

We hear the sounds of ZOOM. Andy’s voice has a slight crackle.

Megan: Andy?

Josh: Andy, I think you’re on mute.

Andy: You’d think after a year of this I’d have figured that out by now.

Megan: How are you guys holding up?

Andy: I’ve been trapped in a house with my wife and three teenagers for a year, how do you think?

Shouting is heard in Andy’s background.

Andy: (to someone in his house) I told you, please do NOT interrupt me while I’m working! I’m sorry.

Josh: The joys of working from home.

Andy: Yeah, thankfully we’re going on a camping trip soon, actually get some fresh air. I’ve been holed up watching too many YouTube videos. There’s some crazy stuff going on out there we don’t know about, I’ll send you some links... (a beat) How are you guys?

Megan: Still adjusting to the role of CEO/private tutor, but all things considered, good.

Josh: We just found out Charlotte got into UCLA, actually.

Andy: That’s amazing! Tell her I said congratulations.

Megan: Thank you, we’re very excited.

Andy: So I’m guessing we want to figure out paying tuition south of the border?

Megan: The even better news is she got a full ride!

Andy: What! That’s incredible! So that means you’ll have more than plenty in the RESP to pay for everything else.

Megan: We said that as soon as she opened the letter!

Andy: Has business come back now that things are opening up?

Josh: We’re getting there. I think we told you we had just opened a new Toronto location in March of last year, and we were closed by May.

Megan: Then we had to shut down three more in different cities. But we think we can reopen at least some of those.

Andy: Geez, I’m sorry, guys.

Josh: But at least since we bought all of our Vancouver real estate, we’ve been able to manage the cash flow from the coffee company to pay the rent for those locations.

Megan: It was a huge lifesaver.

Josh: Good thing we listened to you.

Andy: Hey, you guys did all the hard work, not me.

Josh: We also got inventive with delivery, going cashless, offering people basics like eggs, milk.

Megan: CEBA helped a lot.

Andy: We love an interest free loan.

Megan: We’ve only just started to pay it off though.

Josh: And part of that’s forgivable, right?

Andy: Right, you just need to make sure the unforgivable portion is paid by the end of 2022. Or else you have to pay the entire loan, which then starts accruing interest.

Josh: 2022, I can barely believe it’s 2021. It feels like we’re still on a knife’s edge.

Andy: Now I’ve heard they might extend the CEBA deadline to 2023 because so many businesses are still struggling. But we don’t want to count on that.

Megan: We’re lucky though. So many businesses closed, a lot of them were friends of ours. That could have been us.

Josh: Now we’re stuck in supply chain hell. And we’re a little freaked out that interest rates might go up? But at least we have our health. How’s the health of our portfolio though?

Andy: Well, things are recovering. We did a good job planning beforehand in case something like this might happen. I think we’re in a good place to look a little further out, actually. With the holding company owning the real estate the operating company is in, it really gives you a lot of options available for how you want to move forward. You could always sell the company, or you could sell the company to the kids, or to a third party and the kids can pay you back for buying the company. There’s enough cash flow to do that, to self fund them buying it essentially.

Megan: I’m not sure we should count on that one.

Josh: Let’s see how basketball pans out first.

Andy: Got it. Another option in the real estate direction would be to eventually expand on your existing properties. Your stores are in terrific locations, you could always tear them down and build a tower and put the coffee shop back in it.

Josh: And become a real estate company?

Andy: Essentially.

Josh: Not sure how I feel about that.

Megan: But certainly something to consider.

Andy: Always good to keep interest rates in mind, too. Inflation is creeping up and it’s only going to get higher. Personally, I think it’s going to be a lot higher than even most economists are predicting.

Josh: So what does that mean for us?

Andy: We should see if there’s any interest rate opportunities or risks since the revenue drop from the pandemic. At this point there’s probably more risks.

Josh: Oh, good.

Andy: I know. But the good news is while we might not have anticipated a global pandemic, we planned well to weather storms like this.

Josh: Whew, seriously.

Andy: Oh, also, I wanted to tell you that I’m officially now a full discretionary portfolio manager.

Megan: Amazing, congrats, Andy!

Josh: I never know exactly what your certifications mean, I just know they always help us.

Andy: Ha, exactly. I’ve also brought on a new associate financial advisor onto the team, Amara.

Josh: Great, maybe she can advise our kids one day.

Megan: Just like you and Bill. Oh, Bill. I’m so sorry. My parents were heartbroken.

Josh: We attended the Zoom funeral.

Andy: Thank you, yeah he was a great mentor. And a great friend. Well... I’ll reach out next week with some more info. Stay safe.

Josh: Bye Andy.

An awkward pause.

Megan: What time is your flight?

Josh: Eight.

Megan: Well, that’ll be good. Get that store up and running.

Josh: Yup...

Megan: Maybe next weekend we can do some family time. Go for a hike or something.

Josh: Yeah. Sounds nice. I’m gonna go to bed. Gotta get up early.

Megan: Right. Okay. Goodnight, honey.

Josh: Night.

Music transition --

Narrator: How will Megan and Josh continue to navigate their business in a post-Covid world? Will Charlotte win big for the UCLA Bruins? Will Megan and Josh be able to stop working and live comfortably off of their savings? Find out here, on the next episode of “A Life- Well Planned,” the Raymond James podcast that helps you and your family plan for a prosperous tomorrow, wherever you find your favorite podcasts.

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