There is a common phrase that I am sure you have heard, or even said, on more than one occasion.
Patience is a virtue.
In most situations, I completely agree and believe that maintaining a patient approach to things has a lot of benefits.
As a parent, being patient with your children as they try to learn how to accomplish a new task on their own is invaluable. When we are rushed there is a tendency to jump in and do it for them, however that can have negative consequences when it takes them longer to learn how to do things independently.
In the workplace it is important to be patient with your colleagues, direct reports, and boss.
The DGI community is one that seems to truly embrace patience, as we can all appreciate starting from scratch and building up our investments and dividend portfolios.
It is not a get rich quick process by any means.
Think of that first dividend payment that you received–it may have been only a dollar or two, or possibly even pennies.
For the impatient people, that might seem discouraging and turn them off of dividend investing. However, for most of us, that was the motivation for what this approach can do over the long-term if we remain true to the strategy and maintain our patience.
The dividend snowball grows over time and eventually you begin to reap the rewards.
When Patience Backfires
While we understand the value of patience, unfortunately there are times where we either lose sight of that or things don’t turn out quite the way we desired.
A few months back, I had received a letter from an old employer that I was fully vested in their pension program and I could opt to leave the money alone to receive the full benefit at retirement age, begin taking monthly payments now as a reduced benefit, or elect to receive the reduced benefit as a lump sum now.
The letter sat on my desk for about a month before I jumped into the DGI community headfirst. In early June I decided that it would be best for me to take the lump sum benefit now and put that money to work for me as part of my Divvy Dad Portfolio.
On June 7th, I initiated the rollover of the pension to my Fidelity account.
Or at least I thought that I did.
At the time I was told that it may take 4-6 weeks to process, so I was patient.
And I waited.
Every day my eyes would be drawn to the big $0.00 balance on the rollover IRA that I setup at Fidelity for this process, and I would wonder when the funds would appear.
My goal is to use these funds to establish holdings in a handful of REITs, and I’ve been scouring through the CCC dividend list to narrow down my selections.
Research has been done and all I need now are the funds to appear at Fidelity.
I remained patient.
As June was coming to a close, my anticipation was growing on a daily basis that the funds would arrive and I’d be able to get in my orders to buy my REITs.
Maybe the funds will be there tomorrow.
Nope, but I remained patient.
The 4th of July holiday has come and gone, but still no money has been transferred. The nagging feeling that something wasn’t right continued to grow and I tried to rationalize that maybe the rollover would complete after the holiday.
I remained patient.
Finally, after over a month since initiating the transfer, I called the benefits center from the old employer to inquire on the status of my lump sum rollover. The retirement specialist kindly took my information and looked up my account.
I could hear the clicking of the keyboard.
She asked, “May I put you on hold for a moment?”
That’s usually not good, but I remained patient.
When she came back on the line, she shared that while she could see that I had provided the information to initiate the rollover, something had happened and the process had been canceled. She wasn’t sure what happened, but she would be happy to help me fix it now and get the rollover initiated.
Unfortunately, the process requires them to send me a form in the mail, which myself and Mrs. DivvyDad need to sign in the presence of a notary and then mail back. Once they receive that form back, the rollover will be scheduled for the end of the following month, which she said will be the end of August if we get the form returned right away.
The 4-6 week process that was initially explained to me is quickly turning into a 4 month process.
All because I was patient.
Time Will Tell the True Cost
Overall this is not a big deal and I admit that the whole situation is sensationalized here, however I’ve been itching to make my REIT purchases and get those dividends working for me–and I am sure many of you know that feeling.
I want to grow that divvy snowball.
Down the road, I might look back at this situation and realize that the patience of waiting for the process to run the natural course and take considerably longer may have been a benefit.
Or I will look back and see that the REITs I am interested in have shot to the moon causing me to miss out on 1-2 dividend payments and capital appreciation.
If I were a betting man, I’d probably put my money on the former though.
Because sometimes patience can be tricky like that, and what feels like a lost opportunity in the moment turns out to be a blessing in disguise because you were patient (even if it may not be by choice).