WEBVTT - The market hit my goal before I did 0:00:01.680 --> 0:00:04.040 Welcome to How Do They Afford That? The podcast that 0:00:04.080 --> 0:00:07.240 peeks into the financial lives of every day Australians. I'm 0:00:07.240 --> 0:00:09.160 Michael Thompson. I'm an author and the co host of 0:00:09.160 --> 0:00:12.320 the business news podcast Fear and Greed, and as always 0:00:12.440 --> 0:00:16.680 I'm with Canna Campbell, financial planner, founder of Sugar Mama TV, 0:00:17.400 --> 0:00:21.480 and my co author on our upcoming book, Twelve Months 0:00:21.480 --> 0:00:28.160 to Financial Freedom. Canna, Hello, Hello, So today's episode comes 0:00:28.400 --> 0:00:31.639 from a listener. I love these kinds of episodes because 0:00:31.640 --> 0:00:35.240 they can go in any direction. Right. Chris on Instagram 0:00:35.800 --> 0:00:38.280 wrote in and said this, and Chris wrote to me, 0:00:39.320 --> 0:00:42.600 not to you. I want to make that abundantly clear. 0:00:43.520 --> 0:00:46.280 Chris said, Hi, Michael, I'll add on to the asking 0:00:46.360 --> 0:00:49.680 you questions instead of Canner because I think many many 0:00:49.720 --> 0:00:52.400 months ago I put out an appeal. It was basically 0:00:52.760 --> 0:00:57.160 just one of pure pity, asking people to just feel 0:00:57.160 --> 0:00:59.840 sorry for me and get in touch with me because 0:00:59.840 --> 0:01:02.120 I was feeling neglected. Anyway, Chris has done that, and 0:01:02.200 --> 0:01:05.679 Chris says, I've been inspired by How Do They Afford 0:01:05.760 --> 0:01:08.560 That to get back on top of growing my share 0:01:08.600 --> 0:01:11.680 portfolio and had set a goal to reach by twenty 0:01:11.760 --> 0:01:16.120 twenty eight due to market upswings, I'm now close to 0:01:16.240 --> 0:01:20.759 reaching that goal, which is amazing. All right, that's twenty 0:01:20.800 --> 0:01:23.759 twenty eight that Chris was aiming for and now they've 0:01:23.760 --> 0:01:27.560 achieved it nearly in twenty twenty six. But with the 0:01:27.600 --> 0:01:31.800 stock market volatilities, how do I keep goals dynamic and 0:01:31.840 --> 0:01:35.160 deal with setbacks and increases that are not in my control? 0:01:35.280 --> 0:01:38.040 Or do I set habit goals rather than number goals? 0:01:38.600 --> 0:01:44.360 What do I do? So if we take a look 0:01:44.400 --> 0:01:46.640 at that, Chris set a goal to grow their share 0:01:46.680 --> 0:01:49.640 portfolio certain amount by twenty twenty eight, that a good 0:01:49.720 --> 0:01:52.200 run at the time they're how close to hitting that 0:01:52.240 --> 0:01:56.520 goal years early? It raises some good questions, doesn't it 0:01:56.560 --> 0:01:59.320 about kind of what do you do when your financial 0:01:59.320 --> 0:02:02.000 goals change? How do you stay motivated when the share 0:02:02.040 --> 0:02:06.520 market has other ideas? Shall we start with Chris's dilemma? 0:02:07.600 --> 0:02:09.600 If it's a dilemma at all, They've kind of done 0:02:09.639 --> 0:02:12.360 the right thing. They've set a goal, now they're almost there. 0:02:12.800 --> 0:02:16.600 Well, first of all, congratulations, Yes, I mean this is impressive, 0:02:16.720 --> 0:02:18.560 and you know, not many people can say that. And 0:02:19.240 --> 0:02:21.120 let's step back and look at this. This is a 0:02:21.280 --> 0:02:24.079 good problem to have. Oh yeah, you know, but before 0:02:24.120 --> 0:02:28.160 you do anything, you know, don't go move the goal post, like, 0:02:28.240 --> 0:02:31.639 take a deep breath. Oh really, yeah, and come back 0:02:31.680 --> 0:02:34.960 to what was the reason you got started in building 0:02:34.960 --> 0:02:37.200 this share portfolio in the first place. 0:02:37.720 --> 0:02:40.959 Oh, is this reconnecting with your why a little bit? 0:02:41.000 --> 0:02:43.640 Well yeah, yeah, so you know what was this money 0:02:43.680 --> 0:02:46.040 actually for? So, you know, some people get into the 0:02:46.040 --> 0:02:47.960 share mark and build a share portfolio with the idea 0:02:48.040 --> 0:02:50.200 of using it as a deposit to buy their home, 0:02:50.560 --> 0:02:54.280 whereas others like to invest in shares with the idea 0:02:54.320 --> 0:02:57.120 of living off the passive income stream. You know, other 0:02:57.120 --> 0:02:59.800 people like to do it for a particular niche goal, perhaps, 0:02:59.840 --> 0:03:01.880 you know, to help build up an investment portfolio that 0:03:01.919 --> 0:03:06.520 helps pay for children's education and create options in life. 0:03:06.840 --> 0:03:10.800 So the number is never really the destination. It's actually 0:03:10.800 --> 0:03:14.280 about building the vehicle. There's going to help you achieve 0:03:14.320 --> 0:03:19.000 something that is much bigger here. So obviously, looking at shares, 0:03:19.040 --> 0:03:21.880 it's a long term investment product, you know, sort of 0:03:22.680 --> 0:03:26.480 minimum seven years, if not indefinitely. So come back and go, well, 0:03:26.480 --> 0:03:29.960 hang on, what was my reason for getting started, And 0:03:30.000 --> 0:03:32.040 then you can start to think about whether you need 0:03:32.080 --> 0:03:34.720 to move the goalposts at all or whether you need 0:03:34.760 --> 0:03:37.880 to change your strategy, change your mindset, or even change 0:03:37.880 --> 0:03:38.520 the exit plan. 0:03:39.800 --> 0:03:46.320 Okay, does that then mean number goals? Forget about it. 0:03:46.680 --> 0:03:52.120 Unless that number is a time duration, just don't target. 0:03:52.360 --> 0:03:54.760 I want to grow it to a certain amount by x. 0:03:55.320 --> 0:03:58.640 It is I want to achieve what is the bigger 0:03:58.680 --> 0:04:00.920 picture goal, whether it is I want to have passive 0:04:00.920 --> 0:04:05.400 income or I want to do something. 0:04:06.000 --> 0:04:08.360 So when it comes to your goals, I think you 0:04:08.400 --> 0:04:10.960 should add detail. It shouldn't be just I want to 0:04:10.960 --> 0:04:14.080 build a passive income of say eighty thousand dollars. Yeah, 0:04:14.280 --> 0:04:17.280 it should be I want to build a passive income 0:04:17.279 --> 0:04:19.279 of eighty thousand dollars so that it can pay for, 0:04:20.320 --> 0:04:23.280 you know, me, to be able to retire early part 0:04:23.320 --> 0:04:25.440 time at age fifty five instead of sixty five. I 0:04:25.480 --> 0:04:27.840 give it a lot more depth and meeting and substance. Okay, 0:04:28.040 --> 0:04:30.640 So it's got more grit and you've got greater sort 0:04:30.640 --> 0:04:32.560 of tenacity to want to embrace it and happen as 0:04:32.560 --> 0:04:36.200 a part of your life. Number goals are still extremely 0:04:36.240 --> 0:04:37.760 important because how do you know if you've achieved a 0:04:37.760 --> 0:04:40.760 goal without seeing that number? You know it gives them, 0:04:41.000 --> 0:04:44.479 gives you something to like a tangible. I guess something 0:04:44.600 --> 0:04:46.599 you can sink your teeth in when you have that number. 0:04:47.120 --> 0:04:49.280 And one thing I will say is people who don't 0:04:49.320 --> 0:04:51.960 have goals, you know, that's where you tend to drift 0:04:51.960 --> 0:04:53.320 a lot and waste a lot of time. And that's 0:04:53.320 --> 0:04:55.800 when people come to me and say, I'm treading water. 0:04:55.839 --> 0:04:58.480 I never get ahead, you know, like another year's past 0:04:58.520 --> 0:05:00.440 and I still haven't done anything, Like what's going on? 0:05:00.520 --> 0:05:02.719 I'll say, well, what's your goals? And they either have 0:05:02.760 --> 0:05:04.800 a fluffy, flaky goal or they don't have a goal 0:05:04.800 --> 0:05:07.279 at all. And that's sort of the common denominator I see. 0:05:07.320 --> 0:05:11.800 So having a really clear investment target helps create a 0:05:11.839 --> 0:05:15.280 sense of like direction, motivation, and accountability. You know, you've 0:05:15.320 --> 0:05:17.520 got a goal to work on. You find yourself catching 0:05:17.520 --> 0:05:19.440 yourself going to waste money. You go, well, hang on, 0:05:19.839 --> 0:05:21.040 remember I've got this goal again. 0:05:21.320 --> 0:05:24.960 Okay. Does it make more sense though than okay you 0:05:25.040 --> 0:05:27.680 need to know where the finish line is or at 0:05:27.760 --> 0:05:30.480 least what you're working towards. But does it make more 0:05:30.520 --> 0:05:33.159 sense in the short term at least to set habit 0:05:33.240 --> 0:05:35.880 goals in that I'm going to invest I'm going to 0:05:35.880 --> 0:05:37.880 put aside one hundred dollars a month for investing or 0:05:37.880 --> 0:05:38.480 something like that. 0:05:38.680 --> 0:05:40.839 So you need both, Okay, it's not one or the other. 0:05:41.480 --> 0:05:44.520 Have the goal, make sure the goal excites you, lights 0:05:44.600 --> 0:05:48.320 up something you empowers you. And then when you've got 0:05:48.320 --> 0:05:51.440 that goal, you've got the exact number, you've got the timeframe, 0:05:51.480 --> 0:05:54.320 and you really understand your why. You know, I talk 0:05:54.360 --> 0:05:57.760 about this in my Money Mindset Manifestation program. If I 0:05:57.800 --> 0:05:59.720 was to jump into an elevator with you and we've 0:05:59.720 --> 0:06:02.440 got twenty seconds, you've got to give me your goals, 0:06:02.480 --> 0:06:04.280 and you've got to be able to articulate them with 0:06:04.360 --> 0:06:06.279 all of those three things and talk about them in 0:06:06.320 --> 0:06:09.600 a positive present way. So then you've got your goal, 0:06:09.640 --> 0:06:11.640 you've got your why, you've got the deadline, you've got 0:06:11.640 --> 0:06:14.400 the amount, you've got the landing destination which you've spoken 0:06:14.440 --> 0:06:18.000 about for your lottery money for example, And then you 0:06:18.040 --> 0:06:20.280 can then look at the habits. All right, what are 0:06:20.320 --> 0:06:24.039 the things I can do today that will help get 0:06:24.080 --> 0:06:26.159 me to where I am? You know, even if you 0:06:26.160 --> 0:06:28.719 look at what's one simple thing every single day, do 0:06:28.800 --> 0:06:30.839 that for three hundred and sixty five days, see where 0:06:30.880 --> 0:06:33.200 that takes you. So this is where you can look 0:06:33.240 --> 0:06:37.680 at the habits, the mindset, the reactions, the systems that 0:06:37.720 --> 0:06:40.520 you have in place, the routines, the rituals that are 0:06:40.560 --> 0:06:43.320 all in positive alignment to those goals. So it's the goal, 0:06:43.400 --> 0:06:45.640 but also the habit system and the stacked habit system 0:06:45.640 --> 0:06:46.360 that helps support it. 0:06:47.080 --> 0:06:51.960 Okay, what about the role that market volatility I suppose 0:06:51.960 --> 0:06:53.320 plays in all of this and kind of going back 0:06:53.320 --> 0:06:57.200 to what Chris actually was asking about, where it's worked 0:06:57.200 --> 0:07:01.000 in their favor. Absolutely that they've had a really good 0:07:01.080 --> 0:07:05.760 run and now they're close to achieving these goals. Sometimes 0:07:05.760 --> 0:07:10.559 you do everything right and still go backwards. Though, how 0:07:10.680 --> 0:07:13.560 hard or how important is it to have those goals 0:07:13.600 --> 0:07:14.760 in those circumstances. 0:07:15.200 --> 0:07:18.360 So volatility isn't a flaw when it comes to investing. 0:07:18.440 --> 0:07:21.120 It's just, you know, what we pay for to be 0:07:21.160 --> 0:07:23.840 able to access those opportunities for long term growth. This 0:07:23.960 --> 0:07:29.000 is very very normal. In fact, Shane Oliver, who's is 0:07:29.040 --> 0:07:31.440 AMPS like leading Economists, is probably one of the most 0:07:31.440 --> 0:07:36.600 respected economists in our country. He says, corrections around fifteen sorry, 0:07:36.600 --> 0:07:40.320 five to fifteen percent, you know, are actually very normal 0:07:40.440 --> 0:07:43.800 and very natural, and sometimes they're actually a good thing 0:07:44.160 --> 0:07:47.280 because they present opportunities to be able to buy the 0:07:47.320 --> 0:07:51.200 same quality assets, but obviously at a discount. So you know, 0:07:51.920 --> 0:07:54.080 it's part of the parcel of investing. You've got to 0:07:54.120 --> 0:07:56.600 understand what you're getting yourself into when it comes to 0:07:56.680 --> 0:08:00.360 your financial strategy in trying to achieve that particular goal. 0:08:02.120 --> 0:08:06.240 How then, do you separate your own performance right from 0:08:06.320 --> 0:08:11.520 the market's performance. Is it a case of as long 0:08:11.560 --> 0:08:14.760 as you stick to your guns and stick to what 0:08:14.800 --> 0:08:17.320 you have set out to do. And this goes back 0:08:17.360 --> 0:08:19.280 to the habit based goals of saying, hey, I'm going 0:08:19.320 --> 0:08:21.160 to put aside one hundred dollars a month for investing, 0:08:21.280 --> 0:08:22.960 and as long as you kind of stick with that 0:08:24.400 --> 0:08:27.200 is the whole point that, as you said, it's not 0:08:27.240 --> 0:08:30.760 a short term thing. You need to just stick to 0:08:31.320 --> 0:08:35.040 your plan and you can help and you can ride 0:08:35.040 --> 0:08:35.920 out the volatility. 0:08:36.520 --> 0:08:41.880 Yes, so being patient and being consistent is extremely important. 0:08:41.920 --> 0:08:44.480 Obviously not getting distracted by the headlines and the use 0:08:44.600 --> 0:08:47.079 and you know, people's opinions and the clickbait that sort 0:08:47.080 --> 0:08:51.040 of comes our way and obviously puts temptation to obviously 0:08:51.440 --> 0:08:54.080 run for the hills and sell everything, but you do 0:08:54.160 --> 0:08:55.720 need to stick to it. But also you need to 0:08:55.720 --> 0:08:58.320 make sure that you're educating yourself along the way. You know, 0:08:58.960 --> 0:09:01.760 it's very easy to make your first investment and then 0:09:01.880 --> 0:09:04.120 the share market crashes the next day. It happens all 0:09:04.160 --> 0:09:06.679 the time. But you've got to, as you said, as 0:09:06.720 --> 0:09:09.839 I said, stick to it, review it, come back to 0:09:09.880 --> 0:09:13.760 your goals, and educate yourself. And when you educate yourself, 0:09:13.760 --> 0:09:16.560 you understand the importance of diversification. You understand the importance 0:09:16.600 --> 0:09:19.640 of reinvesting your dividends. Particularly you know when the market 0:09:19.679 --> 0:09:21.760 is down, because the money is going back in and 0:09:21.840 --> 0:09:25.199 you're accumulating more units, more shares at a discounted price, 0:09:25.640 --> 0:09:28.000 and to understand how that impacts the goal. Does that 0:09:28.040 --> 0:09:31.959 mean you're potentially getting more passive income streams? Learning how 0:09:31.960 --> 0:09:36.480 to control your emotions and be able to move through 0:09:36.480 --> 0:09:39.199 the fear and look at the actual facts of the situation. 0:09:39.960 --> 0:09:43.600 That's how I would measure success, not by a fleeting 0:09:43.679 --> 0:09:45.800 number within a very short period of time. 0:09:45.920 --> 0:09:48.560 All right, we're going to take a quick break when we. 0:09:48.760 --> 0:09:51.480 Actually before we sorry, before we take a break, I 0:09:51.480 --> 0:09:54.319 also want to say, it's also the strategy here that's 0:09:54.360 --> 0:09:57.839 been missed, the strategy and the habits that have been built. 0:09:57.840 --> 0:10:00.360 I mean, yes, Chris has built this amazing investment follow 0:10:00.440 --> 0:10:03.960 and he's overshot his goal, which is fabulous. But look 0:10:04.000 --> 0:10:08.760 at the intangible value of what he's created. There's strategy 0:10:09.280 --> 0:10:12.199 and what it's going to give him further down the track. 0:10:12.400 --> 0:10:14.960 So that's also that comes into the success he's gotten started, 0:10:15.000 --> 0:10:18.199 that successful, he's on his way. That is successful, he's 0:10:18.240 --> 0:10:21.560 taken he's taken a proactive approach and managing financial stress 0:10:21.600 --> 0:10:26.240 and building financial independence. That success. Stop pinning it all 0:10:26.240 --> 0:10:29.840 against the value of the share portfolio. It's not enough 0:10:30.000 --> 0:10:34.080 to indicate and determine your level of success. 0:10:34.520 --> 0:10:37.760 Okay, Chris can take a lot out of that then, 0:10:37.840 --> 0:10:41.760 And also we're assuming that Chris is. 0:10:40.600 --> 0:10:44.080 A he oh sorry, that my assumption. 0:10:45.600 --> 0:10:47.160 This is one of those This is one of those 0:10:47.160 --> 0:10:50.440 great mysteries. It could be Christine could be Christina could 0:10:50.440 --> 0:10:52.920 be Christopher. Will never know, well, actually we will know. 0:10:53.559 --> 0:10:56.800 Well hopefully listen to this and the essay they because 0:10:56.840 --> 0:10:58.920 we don't know what gendim it used to identify with. 0:10:59.120 --> 0:11:03.079 But hope fully Chris, whoever you are, wherever you are, 0:11:03.960 --> 0:11:05.640 you won't be a fan of that. We assumed, I 0:11:05.679 --> 0:11:06.679 assumed male. 0:11:06.920 --> 0:11:10.240 And all right, now, very awkwardly, we're going to go 0:11:10.280 --> 0:11:14.760 to a break just while we settle ourselves and come 0:11:14.800 --> 0:11:17.600 back on the other side. I want to talk to 0:11:17.600 --> 0:11:21.360 you then about because we've touched on volatility and you 0:11:22.720 --> 0:11:25.760 mentioned some of the things that some of the benefits 0:11:25.800 --> 0:11:28.040 really of when the market does dip a little bit. 0:11:28.080 --> 0:11:31.760 I want to look at four investors why a pullback 0:11:31.840 --> 0:11:35.559 can actually be useful and the things that experienced investors 0:11:35.559 --> 0:11:37.720 would be looking for the opportunities there. So we'll do 0:11:37.720 --> 0:11:47.120 that in a moment. Cana. We are working our way 0:11:47.160 --> 0:11:50.280 through a listener question today, and this was the question 0:11:50.320 --> 0:11:53.720 from Chris, basically about the fact that they have got 0:11:53.720 --> 0:11:56.920 this share portfolio underway, had a goal that they were 0:11:56.960 --> 0:11:59.920 hoping to hit by twenty twenty eight, and really getting 0:12:00.160 --> 0:12:02.600 very very close to hitting it nearly two years early, 0:12:02.640 --> 0:12:06.960 which is fantastic. But the market volatility is the big 0:12:07.040 --> 0:12:09.280 variable here. You don't know which way it's going to go. 0:12:09.400 --> 0:12:13.880 Sometimes it goes in your favor, sometimes it goes against you. 0:12:13.920 --> 0:12:18.360 Can those pullbacks actually be useful? Really? And what I 0:12:18.360 --> 0:12:20.040 want to know from you here is what are the 0:12:20.080 --> 0:12:24.920 opportunities that experienced investors would be looking for when the 0:12:24.960 --> 0:12:30.160 market does go backwards, and perhaps that newer investors might miss. 0:12:31.160 --> 0:12:32.920 So I like to think of it when the market 0:12:32.960 --> 0:12:36.480 has a correction, that you think of it as a 0:12:36.480 --> 0:12:39.600 stock take clearance at your favorite store. So let's use 0:12:39.640 --> 0:12:43.960 for example, Meyer, you know you the same things that 0:12:44.040 --> 0:12:46.120 you would you need and you want to buy are 0:12:46.200 --> 0:12:50.040 now twenty percent off, maybe even thirty percent off. Now 0:12:50.280 --> 0:12:53.320 does that mean that you don't go shopping anymore? Of 0:12:53.360 --> 0:12:54.960 course you do, because there you can buy the same 0:12:54.960 --> 0:12:57.840 thing at a much greater discount, and that supports all 0:12:57.880 --> 0:13:01.160 of your needs. For example, in your bed, it's exactly 0:13:01.160 --> 0:13:03.920 the same with the stock market pullback, you're actually able 0:13:03.920 --> 0:13:08.320 to buy the same quality. Looking at me, very old, Okay, okay, 0:13:08.320 --> 0:13:10.600 I'm using example of bedlin and I recently bought some 0:13:10.640 --> 0:13:11.520 bedlinen on sales. 0:13:11.640 --> 0:13:13.079 I think that came to mind in that case, it's 0:13:13.160 --> 0:13:16.120 very important to emphasize that your needs in the bedroom 0:13:16.480 --> 0:13:19.480 are related to the linen on the bed. It's just 0:13:19.559 --> 0:13:20.359 this moment. 0:13:20.760 --> 0:13:22.880 Related to getting a good night's sleep, because it's sleep 0:13:22.920 --> 0:13:23.720 as what we're talking about. 0:13:24.200 --> 0:13:27.280 Watching your face just going at some point it is 0:13:27.400 --> 0:13:29.880 going to sink in what you just said. And it 0:13:29.920 --> 0:13:31.680 took a good twelve seconds. 0:13:32.040 --> 0:13:36.480 You can tell I haven't been sleeping very something. My 0:13:36.640 --> 0:13:39.160 mind did not go to the gutter. Clearly yours did. 0:13:39.760 --> 0:13:42.040 I was thinking about a great night sleep and a 0:13:42.120 --> 0:13:44.800 really nice comfortable bed and a really peaceful room and 0:13:44.840 --> 0:13:47.280 no children trying to come in throughout the night on 0:13:47.440 --> 0:13:50.080 dogs barking. So but you know, what I'm trying to 0:13:50.080 --> 0:13:51.800 say is you were able to buy the same quality 0:13:51.800 --> 0:13:53.800 assets at a great discount. And if you're a long 0:13:53.880 --> 0:13:57.000 term investor, you can see the opportunity and you actually 0:13:57.000 --> 0:14:00.440 get excited about this. And you know, some investors, you know, 0:14:00.559 --> 0:14:03.480 a classic example of who we interviewed a year and 0:14:03.520 --> 0:14:06.120 a half ago was Roger Montgomery. He will sit on 0:14:06.160 --> 0:14:12.640 the sidelines with so much self control, building up his cash, 0:14:12.720 --> 0:14:15.640 and then when this happens, he goes all in, you know. 0:14:15.720 --> 0:14:18.800 And Warren Buffett's another classic example of this. The very 0:14:19.000 --> 0:14:21.440 they use this as a great opportunity. They're very strategic, 0:14:21.480 --> 0:14:23.680 they want this to happen. They've been waiting for this 0:14:23.720 --> 0:14:27.880 to happen. That's where experienced investors thrive. And this is 0:14:27.880 --> 0:14:31.280 where you depending on obviously on the actual underlying investment 0:14:31.880 --> 0:14:35.360 and staying within the boundaries of your risk profile. This 0:14:35.560 --> 0:14:39.840 is actually, you know, make Hay Whilest the sun shines opportunities. 0:14:39.360 --> 0:14:41.880 And it's always as well a good time to see 0:14:41.920 --> 0:14:45.560 a financial advisor as well to actually go and get 0:14:45.600 --> 0:14:49.280 some advice that is tailored to your circumstances as well, 0:14:49.320 --> 0:14:52.520 because yes, there are opportunities out there in those circumstances, 0:14:53.360 --> 0:14:56.720 and having that advice already in your pocket, ready to go, 0:14:56.880 --> 0:14:57.800 means that you're prepared. 0:14:58.320 --> 0:15:00.400 And you know what, for time, poor people, all people 0:15:00.440 --> 0:15:04.360 who can't afford to see a financial planner or you know, 0:15:04.600 --> 0:15:07.840 just overwhelmed with so many other responsibilities in their lives, 0:15:08.160 --> 0:15:10.920 go and subscribe to Shane Oliver's newsletter. He sends one 0:15:10.920 --> 0:15:13.320 out once a month and it's it's easy to read, 0:15:13.520 --> 0:15:16.640 and he's absolutely brilliant in the way that he explains everything, 0:15:16.680 --> 0:15:19.760 and he refers back to history. He uses lots of 0:15:19.760 --> 0:15:23.920 fixative really, so he uses lots of facts and he 0:15:23.920 --> 0:15:27.040 helps you understand really what's going on and when to 0:15:27.040 --> 0:15:30.640 be worried and when to actually you get excited and 0:15:30.680 --> 0:15:34.240 make the most of it. And he's just he's absolutely brilliant. 0:15:34.240 --> 0:15:37.120 But that's free and that will help calm the nerves 0:15:37.720 --> 0:15:38.800 and practical advice. 0:15:39.040 --> 0:15:41.480 Shane is a regular guest on Fear and greed is 0:15:41.480 --> 0:15:44.960 he Yes, he's always he comes on quite often, and 0:15:45.200 --> 0:15:48.360 his advice and just the way that he is able 0:15:48.400 --> 0:15:53.360 to cut through a lot of noise always very well received. 0:15:53.880 --> 0:15:57.520 So pullbacks, we've established that they are useful and that 0:15:57.560 --> 0:16:02.560 there are things, there are opportunities there for investors. If somebody, 0:16:03.480 --> 0:16:08.640 not necessarily Chris, because Chris our listener who has gotten 0:16:08.640 --> 0:16:12.000 in touches clearly already setting goals. But if somebody was 0:16:12.040 --> 0:16:16.160 setting out today to set some investment goals, what is 0:16:16.200 --> 0:16:20.880 the right mix here of outcome based and habit based goals? 0:16:21.200 --> 0:16:24.080 You said before that you need to know what the 0:16:24.080 --> 0:16:27.160 finish line is, what the target actually is. How do 0:16:27.200 --> 0:16:28.480 you find that right mix? 0:16:29.080 --> 0:16:30.920 So I think you've got to work backwards from where 0:16:30.960 --> 0:16:33.080 you want to land. You know, for example, if you 0:16:33.080 --> 0:16:36.320 want to build one hundred thousand dollars share portfolio over 0:16:36.440 --> 0:16:37.800 X amount of years, you've got to work out, well, 0:16:37.800 --> 0:16:40.000 all right, what habits do I need to create to 0:16:40.000 --> 0:16:42.800 get me there? Is it investing one hundred dollars a week? 0:16:42.960 --> 0:16:44.760 Is it investing one hundred and fifty dollars a week? 0:16:45.160 --> 0:16:47.800 And be open and flexible to tweaking and changing that 0:16:47.960 --> 0:16:50.760 strategy along the way. So it is very much a 0:16:50.760 --> 0:16:51.760 combination of both. 0:16:52.360 --> 0:16:55.440 Okay, bringing it right back to where we started with 0:16:55.680 --> 0:17:02.280 good old Chris and this growing shareport folio. You set 0:17:02.280 --> 0:17:07.199 out by saying stop, take a minute, take a breath, 0:17:07.920 --> 0:17:13.240 don't go shifting the goalposts now, So what should Chris do? 0:17:13.320 --> 0:17:17.440 Then he should come back to his why now if 0:17:17.480 --> 0:17:20.520 he had his WIY for this portfolio was to actually 0:17:20.600 --> 0:17:24.000 use as a deposit, ye and to buy a home. 0:17:25.600 --> 0:17:28.800 Because his share portfolio is a very volatile long term investment, 0:17:29.080 --> 0:17:32.680 he may actually be better off obviously after getting advice 0:17:32.720 --> 0:17:35.240 from an accountant, particularly with the change in CGT rules, 0:17:35.720 --> 0:17:39.320 in potentially selling it down now, because that then can 0:17:39.359 --> 0:17:41.240 be put into a savings account and he can start 0:17:41.280 --> 0:17:43.200 looking for a property buy and he doesn't need to 0:17:43.200 --> 0:17:46.160 worry about that short term market volatility which is extremely 0:17:46.200 --> 0:17:49.240 high risk. Here, if he comes back and goes, all right, 0:17:49.880 --> 0:17:52.679 my goal is actually to build financial freedom. That's what 0:17:52.720 --> 0:17:55.000 I want. Well, then stick to it, keep going with 0:17:55.040 --> 0:17:58.240 that strategy, and review your goals and perhaps you can 0:17:58.280 --> 0:18:00.840 look at a different type of goal. It's not necessarily 0:18:01.000 --> 0:18:05.320 reflective of the value of the portfolio, because really that's 0:18:05.359 --> 0:18:07.919 a one dimensional number to be following you know, we 0:18:08.000 --> 0:18:11.040 talk about this in our book Twelve Months to Financial Freedom. 0:18:11.119 --> 0:18:13.159 We talk about the mindful Money number goal, which is 0:18:13.200 --> 0:18:16.080 all about building up the passive income stream. So I 0:18:16.119 --> 0:18:20.240 would recommend to Chris that they look at they look 0:18:20.280 --> 0:18:24.919 at a passive income based goal. Now, so I obviously 0:18:24.960 --> 0:18:26.800 we don't know the size of this portfolio, but just say, 0:18:26.840 --> 0:18:29.240 for simplistic terms, it say it's one hundred thousand dollars 0:18:29.280 --> 0:18:32.560 investment portfolio. Say it's generating a passive income stream of 0:18:32.600 --> 0:18:34.800 say five percent a year, so five thousand dollars a year. 0:18:35.400 --> 0:18:38.280 Instead of building your goal around building one hundred and 0:18:38.320 --> 0:18:41.520 fifty thousand dollars investment portfolio, perhaps you look at going, well, okay, 0:18:41.560 --> 0:18:43.480 I want to build my passive income stream from five 0:18:43.480 --> 0:18:45.080 thousand dollars a year to say seven and a half 0:18:45.119 --> 0:18:48.600 thousand dollars a year. That way, you're actually tracking and 0:18:48.680 --> 0:18:52.600 monitoring something that's actually a lot more tangible than some floating, fluctuating, 0:18:52.760 --> 0:18:57.639 highly volatile portfolio value. And it also helps calm the 0:18:57.680 --> 0:19:01.439 nerve so that when corrections happen, which is just a 0:19:01.520 --> 0:19:05.760 natural part of investing, you can have that calm, rational 0:19:06.000 --> 0:19:09.359 objective and idea of what to do next, because you're like, well, 0:19:09.400 --> 0:19:12.240 hang on, yes, my portfolios drop twenty percent, but has 0:19:12.280 --> 0:19:15.359 my income dried up? Has it that drop twenty percent? 0:19:15.640 --> 0:19:18.359 Most likely obviously depending on the investments and how well 0:19:18.359 --> 0:19:22.520 it's diversified. No, So what does this aptually represent and 0:19:22.640 --> 0:19:24.359 how does that come back to my goals? We'll actually 0:19:24.320 --> 0:19:27.080 I could buy more and invest more and grow that 0:19:27.119 --> 0:19:30.280 passive income even further. So this is why I'm such 0:19:30.280 --> 0:19:32.720 a huge fan of actually having a passive income driven 0:19:32.800 --> 0:19:35.880 goal based around a mindful money number then, rather than 0:19:35.960 --> 0:19:38.280 trying to build a net worth or a gross worth, 0:19:38.560 --> 0:19:40.400 because at the end of the day, if it's capital 0:19:40.400 --> 0:19:43.600 growth driven, it's so volatile, particularly with shares, and how 0:19:43.640 --> 0:19:45.800 is that going to support your financial freedom goals? If 0:19:45.800 --> 0:19:46.680 that's what it's all about? 0:19:47.359 --> 0:19:49.280 All right, So that is a great piece of advice 0:19:49.280 --> 0:19:54.240 then for Chris, but very quickly, and I hate to 0:19:54.240 --> 0:19:56.840 put you under a time limit, but in thirty seconds 0:19:56.920 --> 0:19:59.960 or less. Advice for other listeners who might have started 0:20:00.200 --> 0:20:06.679 investing bit of market volatility value is coming back? Do 0:20:06.760 --> 0:20:07.280 they panic? 0:20:08.119 --> 0:20:11.480 I would actually say, stay educated and informed, but stop 0:20:11.640 --> 0:20:15.560 checking your portfolio. This obsession with constantly checking the portfolio 0:20:15.600 --> 0:20:19.240 evaluation rather than the income can actually lead you down 0:20:19.240 --> 0:20:21.239 the garden path and actually come with a lot of 0:20:21.320 --> 0:20:24.560 regret and a lot of waste of time and energy. 0:20:25.560 --> 0:20:28.600 Go back to your goals, look at the opportunity, stay educated, 0:20:28.640 --> 0:20:31.240 and if you need to, just walk away from it. 0:20:31.400 --> 0:20:35.159 And history shows that markets need approximately eighteen months to recover. 0:20:35.600 --> 0:20:37.240 So if you're not comfortable with putting more money into 0:20:37.240 --> 0:20:40.960 the portfolio, that's perfectly fine, but just let it sit there. 0:20:41.000 --> 0:20:43.880 Make sure it's probably diversified. Check in, but just leave 0:20:43.960 --> 0:20:46.200 it be and be very careful as to what you're 0:20:46.240 --> 0:20:50.040 reading online. Who is reputable, who is credible, who's actually 0:20:50.080 --> 0:20:52.919 got the experience, who's gone through this many many a 0:20:52.960 --> 0:20:56.920 time and can give some wise consistent advice like Shane Oliver. 0:20:57.200 --> 0:20:59.560 Okay, all right, there we go. If we want more 0:20:59.560 --> 0:21:02.280 information from you, where do we find you. 0:21:02.520 --> 0:21:04.480 The best place to get a contact with me is 0:21:04.520 --> 0:21:06.160 on Instagram at Sugar Mama. 0:21:06.000 --> 0:21:08.240 TV and you can hear me every day with Sean 0:21:08.320 --> 0:21:10.760 Aylmer on Fear and Greed business News. You can use 0:21:11.040 --> 0:21:12.879