WEBVTT - Investing for Grown-Ups 0:00:04.400 --> 0:00:06.680 Rube. 0:00:07.600 --> 0:00:10.320 I really don't believe that you need a finance degree 0:00:10.880 --> 0:00:13.480 to be good with money. I think that you need 0:00:13.560 --> 0:00:17.200 about six grade math and someone to teach you, and 0:00:17.239 --> 0:00:18.240 you can pull it off. 0:00:20.360 --> 0:00:24.360 I feel like investing has a branding problem. How so well, 0:00:24.400 --> 0:00:26.759 it sounds like something you need a suit, a briefcase, 0:00:26.800 --> 0:00:29.600 and three computer monitors to do right. 0:00:29.640 --> 0:00:31.840 Well, in reality, most of us just want to know 0:00:31.880 --> 0:00:34.519 if we're making smart decisions with our money exactly. 0:00:34.920 --> 0:00:37.920 So today we're skipping the Wall Street jargon and talking 0:00:37.960 --> 0:00:43.519 about investing in a way that actually makes sense. Welcome 0:00:43.560 --> 0:00:45.680 back to grown Up Stuff, the podcast where we figure 0:00:45.720 --> 0:00:47.760 out all the things you feel like you should know 0:00:47.840 --> 0:00:50.520 by now but maybe don't because I know I don't. 0:00:50.880 --> 0:00:54.080 I'm Leah Palmery and I'm Matt Stillow and I don't either. 0:00:54.520 --> 0:00:58.360 But in previous episodes we've covered retirement accounts, credit cards, 0:00:58.400 --> 0:01:01.280 and budgeting, which if you haven't heard yet, totally go 0:01:01.360 --> 0:01:05.399 back and listen. But today we're talking about investing, but 0:01:05.560 --> 0:01:08.840 not just the basics of it. We're getting into the specifics. 0:01:09.360 --> 0:01:11.880 I think that this is just super important for all 0:01:11.959 --> 0:01:15.200 grown ups financial futures. I started my own personal investment 0:01:15.280 --> 0:01:18.240 journey after reading A Simple Path to Wealth by Jail Collins, 0:01:18.640 --> 0:01:21.959 and it changed my life completely by getting into the 0:01:22.000 --> 0:01:25.839 specifics but not being scary. So we're going to drop 0:01:25.880 --> 0:01:28.840 the jargon but get into exactly what you need to 0:01:28.880 --> 0:01:31.199 do to get your finances in order. 0:01:31.640 --> 0:01:34.280 I love a good how to book, especially one that's 0:01:34.280 --> 0:01:35.760 going to help me increase my network. 0:01:35.880 --> 0:01:38.240 Well, that's exactly why we asked our guest here today, 0:01:38.360 --> 0:01:42.520 Hailey Sachs aka missus Dowd Jones, to join us. She 0:01:42.800 --> 0:01:46.640 is a Zillennial fun finance expert and author of the 0:01:46.680 --> 0:01:50.160 book Future Rich Person, The New Rules for Building Wealth. 0:01:50.360 --> 0:01:52.200 I would like to be a current rich person. 0:01:52.680 --> 0:01:54.840 Me too, But we have to start somewhere. 0:01:54.520 --> 0:02:04.800 Right, I guess, Well, before we get into the specific 0:02:04.880 --> 0:02:07.920 investment vehicles and tools, let's start with some basics. 0:02:08.520 --> 0:02:10.360 So, Hayley, why would you say. 0:02:10.160 --> 0:02:12.720 That investing is an important part of becoming a future 0:02:12.800 --> 0:02:13.320 rich person? 0:02:13.760 --> 0:02:15.920 That's such a great question, Leah, and I love starting 0:02:15.960 --> 0:02:18.920 there because I feel like everyone tells you to invest, 0:02:18.919 --> 0:02:21.480 but no one really tells you why not to invest, 0:02:21.639 --> 0:02:24.080 and it feels sort of scary to invest because it 0:02:24.080 --> 0:02:26.760 feels like you're taking a risk. An analogy that I 0:02:26.800 --> 0:02:29.400 really like to use around investing because there is a 0:02:29.440 --> 0:02:32.560 lot of fear around it. People think that it's unsafe, 0:02:33.040 --> 0:02:36.880 that it's super risky. But if you invest properly, which 0:02:36.919 --> 0:02:38.960 we're going to talk about on this show, in a 0:02:39.000 --> 0:02:43.360 diversified way, it's basically like driving the speed limit. 0:02:43.800 --> 0:02:45.480 So it's the safe way to go. 0:02:45.560 --> 0:02:47.880 And I think that people think that speeding would be 0:02:47.960 --> 0:02:52.880 buying individual stocks, day trading, buying crypto, but that, on 0:02:52.919 --> 0:02:56.919 the other hand, equally dangerous is going below the speed limit. 0:02:57.000 --> 0:02:59.680 Like if you're on a really fast highway and you're 0:02:59.720 --> 0:03:02.560 going ten miles an hour, you're in just as much 0:03:02.560 --> 0:03:05.720 of a precarious situation as someone who's going on undred. 0:03:05.520 --> 0:03:07.080 Miles an hour on that highway. 0:03:07.120 --> 0:03:09.240 You want to just go sixty five or seventy what 0:03:09.280 --> 0:03:11.280 the speed limit is. And so I think a lot 0:03:11.280 --> 0:03:15.040 of people hoard cash, they avoid investing, and they think 0:03:15.080 --> 0:03:18.839 that that is being safe. But I want you to realize, 0:03:18.880 --> 0:03:22.359 like to rethink about how you frame that and think 0:03:22.400 --> 0:03:25.080 about what's safe is actually to go to speed limit, 0:03:25.080 --> 0:03:29.880 which is to invest in a just very diversified, safe way. 0:03:30.440 --> 0:03:32.880 I have some money sitting in my account right now 0:03:33.080 --> 0:03:34.920 that I've been like just invest what are you doing, 0:03:35.000 --> 0:03:36.760 like just put it in an investment. 0:03:37.400 --> 0:03:40.200 Yeah, but that's the mindset shift that you need, Like 0:03:40.240 --> 0:03:42.360 you have to start thinking about it as this is 0:03:42.400 --> 0:03:44.600 the right thing to do, so, Hayley. 0:03:44.680 --> 0:03:48.160 For a lot of us, investing feels like learning a 0:03:48.200 --> 0:03:52.200 foreign language. Stock symbols, financial jargon, market terminology. It can 0:03:52.240 --> 0:03:55.640 all seem sort of abstract and intimidating, but it doesn't 0:03:55.680 --> 0:03:58.480 have to be. With the right translation, these concepts become 0:03:59.040 --> 0:04:02.440 so much more approach. I'm curious to hear. Why does 0:04:02.440 --> 0:04:06.200 the financial world often make investing feel far more complicated 0:04:06.280 --> 0:04:07.040 than it has to be. 0:04:07.640 --> 0:04:11.680 Here's the thing, Matt, confusion is super profitable. Like the 0:04:11.720 --> 0:04:16.560 financial services industry is not incentivized at all for you 0:04:16.720 --> 0:04:17.760 to be good with money. 0:04:18.320 --> 0:04:20.040 They make so much. 0:04:19.839 --> 0:04:24.360 Money off of overdraft fees, off of financial services that 0:04:24.600 --> 0:04:26.599 maybe you don't need, that you're getting charged for that 0:04:26.640 --> 0:04:31.120 you don't realize. And the more intimidating that investing feels, 0:04:31.480 --> 0:04:34.040 the more likely you are to pay someone else a 0:04:34.080 --> 0:04:36.880 fee to do it for you or to avoid it altogether, 0:04:37.400 --> 0:04:40.520 and either way the industry wins. So like all this 0:04:40.800 --> 0:04:47.600 jargon nonsense expense ratios and index funds and asset allocation, 0:04:48.240 --> 0:04:51.240 all these words that they use. It's not complex just 0:04:51.320 --> 0:04:56.599 for complexity's sake. It's really just like a mote. And 0:04:57.080 --> 0:05:00.000 the moment that you actually translated into English you realize 0:05:00.040 --> 0:05:02.039 is that most of it is pretty simple. Like for me, 0:05:02.160 --> 0:05:04.720 that was a really big aha moment in my money 0:05:05.040 --> 0:05:08.560 journey was when I was like, Oh, they've completely catfished us, 0:05:08.839 --> 0:05:11.640 Like this is actually not that hard at all, and 0:05:11.920 --> 0:05:14.080 they've made it to seem hard, but like we can 0:05:14.120 --> 0:05:15.200 all totally do this. 0:05:15.800 --> 0:05:19.359 If anyone takes anything away from this conversation, I hope 0:05:19.400 --> 0:05:22.239 to God Haley that it's that there's so many people 0:05:22.240 --> 0:05:23.360 in my life they're like, Oh, I think I'm just 0:05:23.400 --> 0:05:26.360 gonna pay this financial advisor. I think you don't need 0:05:26.440 --> 0:05:28.919 any of that, and all you need is something really simple, 0:05:29.000 --> 0:05:31.320 like reading Haley's book Future Rich Person. 0:05:31.600 --> 0:05:33.920 It has everything in it that you need to build well. 0:05:34.000 --> 0:05:36.400 But I will say, like on my own investing journey, 0:05:36.440 --> 0:05:38.560 which I talk about all the time, that like, if 0:05:38.560 --> 0:05:40.880 I can do this, you can do this. I'm a 0:05:41.000 --> 0:05:44.200 very tight b person. I'm like using my passport to 0:05:44.200 --> 0:05:46.440 get into the bar. The other week I posted about 0:05:46.480 --> 0:05:48.800 me trying to get a real ID and it took 0:05:48.839 --> 0:05:51.279 me like a million times to go because I'm always 0:05:51.360 --> 0:05:54.159 kept forgetting the forms. But it's like, despite the fact 0:05:54.160 --> 0:05:58.520 that maybe I'm not the best at functioning, I am 0:05:58.520 --> 0:06:01.919 a millionaire and it's just becu of automation and because 0:06:01.960 --> 0:06:06.800 I read finance books and because I have controlled my spending. 0:06:07.320 --> 0:06:08.880 It's really is that simple. 0:06:09.080 --> 0:06:11.839 And so I hope that people feel empowered by that 0:06:11.880 --> 0:06:13.720 and you realize that you don't have a chit missing. 0:06:13.800 --> 0:06:16.360 I think we all think that like we are missing 0:06:16.440 --> 0:06:20.320 some sort of special finance like yeah, and it's like 0:06:20.400 --> 0:06:22.240 we have to remember that we are all born the 0:06:22.279 --> 0:06:24.800 same way. Like you were born knowing as much about 0:06:24.839 --> 0:06:28.359 money as warm Buffett or Oprah who's a billionaire, or 0:06:28.440 --> 0:06:31.760 Taylor Swift or you know, like any of these people 0:06:31.800 --> 0:06:34.040 that you think are like so rich and have it 0:06:34.080 --> 0:06:37.040 all together, they were born the same way as you were. 0:06:37.120 --> 0:06:39.360 Because you can maybe can inherit money, but you can't 0:06:39.400 --> 0:06:40.680 inherit financial literacy. 0:06:40.760 --> 0:06:42.200 It's something that we all have to learn. 0:06:42.839 --> 0:06:45.599 I like your analogy about the speed limit, like that 0:06:45.680 --> 0:06:48.080 to me makes sense. So say that I'm somebody who 0:06:48.160 --> 0:06:50.400 has gotten in the car. I've put on my seat belt, 0:06:51.040 --> 0:06:54.320 but I'm still a little bit nervous about starting. So 0:06:54.360 --> 0:06:58.520 before I put my pedal to the medal, what advice 0:06:58.560 --> 0:07:00.839 would you give to that person? It's just like, I'm 0:07:00.920 --> 0:07:03.039 not really quite sure where to start. What should I 0:07:03.040 --> 0:07:05.000 do before I really like take this leap and put 0:07:05.000 --> 0:07:06.800 my hard earned money somewhere. 0:07:07.440 --> 0:07:10.040 So the first thing that you absolutely need to do, Leah, 0:07:10.360 --> 0:07:13.040 is make sure that you have a three to six 0:07:13.120 --> 0:07:17.320 month emergency fund in a high yield savings account. And 0:07:17.360 --> 0:07:20.160 that's because the market moves in cycles. So you never 0:07:20.200 --> 0:07:22.320 want to invest money that you might need in the 0:07:22.360 --> 0:07:24.840 case of an emergency because you might have to pull 0:07:24.880 --> 0:07:27.000 it out and the market will be on an off 0:07:27.120 --> 0:07:30.720 day and you'll have less money than you invested and 0:07:30.760 --> 0:07:32.160 you're going to pull it out and be like, Heley, 0:07:32.160 --> 0:07:33.560 what do you mean? You told me that it was 0:07:33.600 --> 0:07:36.680 safe to invest, and you know it does. Your money 0:07:36.720 --> 0:07:38.840 will make money, but you have to let it sit 0:07:38.920 --> 0:07:40.760 for a long enough time that it will and the 0:07:40.800 --> 0:07:43.320 minimum amount of time is five to seven years. So 0:07:43.400 --> 0:07:45.520 make sure that you have some cash on the side 0:07:45.680 --> 0:07:48.320 because anything that can go wrong will go wrong, and 0:07:48.360 --> 0:07:50.440 you want to make sure you're covered. And then you 0:07:50.520 --> 0:07:51.880 also want to make sure that you don't have high 0:07:51.920 --> 0:07:55.840 interest rate debt, which is any debt really above seven percent, 0:07:56.200 --> 0:07:59.080 because the stock market really returns around eight to ten percent. 0:07:59.520 --> 0:08:02.720 So even if you're investing and you're making money, if 0:08:02.720 --> 0:08:06.920 your credit card is twenty four percent, you're going to 0:08:06.960 --> 0:08:09.880 still be on the sadonic treadmill where your returns are 0:08:09.880 --> 0:08:12.640 never going to outweigh how much you're paying in fees. 0:08:13.200 --> 0:08:14.920 Absolutely, And I think that the best way that this 0:08:15.040 --> 0:08:16.840 was explained to me is You've got a couple of 0:08:16.880 --> 0:08:19.960 different buckets. Right, there's your retirement, which is the longest 0:08:20.160 --> 0:08:22.320 out Right, You've got the most amount of time to 0:08:22.360 --> 0:08:24.480 get a retirement, and then maybe you want to think 0:08:24.520 --> 0:08:26.080 about buying a house, right, maybe that's in the next 0:08:26.120 --> 0:08:28.200 two to three years, and then maybe have something even 0:08:28.200 --> 0:08:30.760 more immediate, like you're saving to go on vacation. So 0:08:31.000 --> 0:08:33.200 the time in the market is really where that comes 0:08:33.280 --> 0:08:36.000 into play. You need the most money to retire, really, 0:08:36.040 --> 0:08:38.200 and so people are like, get in as early as 0:08:38.240 --> 0:08:38.600 you can. 0:08:39.280 --> 0:08:42.160 We've talked in previous episodes about the different types of 0:08:42.160 --> 0:08:46.920 investment accounts, like retirement accounts and brokerage accounts, and those 0:08:46.920 --> 0:08:49.440 are really just different ways your money is treated for 0:08:49.600 --> 0:08:52.240 tax purposes. But today I want to take a step 0:08:52.280 --> 0:08:55.920 back and talk about the thing that's actually inside those accounts. 0:08:56.280 --> 0:09:00.080 There are lots of ways people invest real estate, precious metal, 0:09:00.200 --> 0:09:03.840 even cryptocurrency, but for most people, the stock market is 0:09:03.880 --> 0:09:06.760 really where their investing journey begins. And I think it's 0:09:06.760 --> 0:09:09.040 one of those things everyone has heard of, but maybe 0:09:09.080 --> 0:09:12.160 not everyone really understands it. So can you break it 0:09:12.200 --> 0:09:15.839 down for us? What actually is the stock market and 0:09:16.000 --> 0:09:18.480 what's the simplest way to think about how it works? 0:09:19.280 --> 0:09:20.600 Yes, I absolutely will. 0:09:20.640 --> 0:09:22.319 And one thing that I also say before I get 0:09:22.360 --> 0:09:26.600 into this is it financial confidence follows action. So if 0:09:26.640 --> 0:09:29.240 while you're listening to this you're feeling like, okay, still, 0:09:29.280 --> 0:09:32.319 I can't do this whatever, the key is to force 0:09:32.360 --> 0:09:35.040 yourself to do it anyways, because you're never actually going 0:09:35.080 --> 0:09:37.160 to feel ready this, I'm sure of. 0:09:37.240 --> 0:09:39.439 I've worked with tens of thousands of people on this. 0:09:39.679 --> 0:09:42.280 But you will feel confident after you take the action. 0:09:42.800 --> 0:09:44.240 So it's just like a good thing to keep in 0:09:44.280 --> 0:09:47.080 mind that the confidence will come after you open the 0:09:47.120 --> 0:09:50.000 account and start doing this. And it's normal to feel 0:09:50.080 --> 0:09:53.560 really unsettled at the beginning because your money takes a 0:09:53.559 --> 0:09:55.600 lot of work to make and you don't want to screw. 0:09:55.400 --> 0:09:56.600 It up, and I totally get that. 0:09:56.679 --> 0:09:59.480 But that's why I use the driving analogy because I 0:09:59.480 --> 0:10:03.040 want you guys to actually think that investing is safer 0:10:03.120 --> 0:10:05.440 than not investing, because it is, and that's what's going 0:10:05.520 --> 0:10:09.800 to secure your future forever. Okay, let's talk about the 0:10:09.840 --> 0:10:14.520 stock market. So the stock market is sort of like Spotify. 0:10:14.840 --> 0:10:17.640 You know, Spotify has a bunch of different songs. Stock 0:10:17.640 --> 0:10:20.400 market has a ton of different companies that you can 0:10:20.440 --> 0:10:22.560 buy a little piece of. When you buy a share, 0:10:22.679 --> 0:10:24.880 you're buying like a tiny piece of that company. So 0:10:25.520 --> 0:10:29.000 for example, when I was little, my dad took my piggy. 0:10:28.760 --> 0:10:30.320 Bank and was like, what do you want to invest in? 0:10:30.400 --> 0:10:33.040 And I wanted to invest in Lays and Starbucks because 0:10:33.040 --> 0:10:37.200 I was like a chubby girl who loved chips and frappuccinos. 0:10:37.480 --> 0:10:39.760 You're like, I really believe in the future of these companies. 0:10:40.080 --> 0:10:41.160 I believe in the future of them. 0:10:41.280 --> 0:10:43.040 I am a huge supporter of them, and I thought 0:10:43.040 --> 0:10:45.120 I would get like extra whip on my like Mocha 0:10:45.200 --> 0:10:46.600 frap if I was a shareholder. 0:10:47.280 --> 0:10:47.600 Wrong. 0:10:47.880 --> 0:10:51.479 But that's one way to do it. But with Spotify, 0:10:51.960 --> 0:10:55.920 you can become obsessed with one artist and pray that 0:10:55.960 --> 0:10:59.600 they never flop. Or you could listen to a playlist 0:10:59.720 --> 0:11:03.480 that has the entire top five hundred songs right now. 0:11:04.240 --> 0:11:08.199 Sure that one artist might never have a bad album, 0:11:08.440 --> 0:11:11.640 like you might choose the next Sabrina Carpenter and that's amazing, 0:11:11.760 --> 0:11:14.640 or the next Tailor Swift. But you don't want to 0:11:14.679 --> 0:11:18.240 put all your money just in one artist, where you 0:11:18.280 --> 0:11:21.320 could put your money towards owning the whole playlist, and 0:11:21.320 --> 0:11:23.760 then you're never gonna have to actually guess who's going 0:11:23.800 --> 0:11:26.760 to be famous next, because you're gonna have five hundred 0:11:27.040 --> 0:11:30.400 options that one of them is going to do really well, 0:11:30.800 --> 0:11:32.520 a lot of them are going to do sort of well, 0:11:32.559 --> 0:11:34.520 some of them are going to flop, and it's going 0:11:34.559 --> 0:11:38.360 to even out so that overall you're making money. 0:11:38.720 --> 0:11:40.160 I love that, yep. I love that. 0:11:40.320 --> 0:11:41.760 You're really great analogy. 0:11:41.480 --> 0:11:45.040 Talking in my terms there. But the thing that still 0:11:45.080 --> 0:11:48.520 makes me a little bit nervous is that, especially this year, 0:11:49.000 --> 0:11:52.840 the year of twenty twenty six, I can't go on 0:11:52.880 --> 0:11:55.560 TikTok and scroll on TikTok without hearing it's gonna crash. 0:11:55.600 --> 0:11:57.440 Everything's gonna be bad. We're all gonna lose our money. 0:11:57.440 --> 0:11:58.240 Blah, blah blah. 0:11:58.240 --> 0:12:00.600 So like I do believe you, Haley, because you are 0:12:00.600 --> 0:12:03.400 a very smart person and people say that you know, 0:12:03.440 --> 0:12:05.280 it always goes up. I do believe that, but like 0:12:05.360 --> 0:12:08.280 it does go down sometimes, right, So, like what exactly 0:12:08.360 --> 0:12:08.960 does that mean? 0:12:09.480 --> 0:12:11.560 First of all, you have to realize that the whole 0:12:11.600 --> 0:12:15.880 financial services industry and like financial media, is built on 0:12:15.960 --> 0:12:19.640 fear mongering. It is our Christmas the day that the 0:12:19.760 --> 0:12:23.080 Dow crashes or the market crashes, because you got to 0:12:23.160 --> 0:12:26.080 just put out so many headlines and everyone is so 0:12:26.200 --> 0:12:29.360 anxious and they're clicking, and so just take it with 0:12:29.400 --> 0:12:32.080 a grain of salt because those creators you see on 0:12:32.120 --> 0:12:35.040 TikTok are just trying to get views. They're not really 0:12:35.120 --> 0:12:37.400 speaking from a place of authority, and that's all. You 0:12:37.400 --> 0:12:40.400 also have to be careful about which financial influencers you follow, 0:12:41.040 --> 0:12:44.240 because you want someone who's really measured and really acts 0:12:44.240 --> 0:12:44.839 almost as a. 0:12:44.760 --> 0:12:45.880 Fiduciary towards you. 0:12:46.160 --> 0:12:48.800 And so you seem to also find like safe spaces 0:12:48.840 --> 0:12:49.480 of the internet. 0:12:53.440 --> 0:12:56.200 And a quick side note, a fiduciary is a financial 0:12:56.240 --> 0:13:00.400 professional who is legally required to put your best interests, 0:13:00.679 --> 0:13:04.320 not theirs. That means they're expected to recommend what's best 0:13:04.360 --> 0:13:07.240 for you, not what earns them the biggest commission. 0:13:10.120 --> 0:13:10.480 I think. 0:13:10.600 --> 0:13:12.720 Another thing to think about is that the stock market 0:13:12.760 --> 0:13:16.600 is really the only place where people run out of 0:13:16.679 --> 0:13:20.280 the store the moment that everything is on sale. Any 0:13:20.320 --> 0:13:22.600 other place you'd be like, WHOA, it's on sale, I 0:13:22.640 --> 0:13:27.600 get to buy more. But with the market, people freak out. 0:13:27.800 --> 0:13:29.520 And the other thing you should know is that people 0:13:29.559 --> 0:13:33.040 have been predicting the next market crash basically every year 0:13:33.440 --> 0:13:36.880 since the stock market was invented, and eventually someone is right, 0:13:37.000 --> 0:13:38.960 but it's you know, they throw it out there anyways, 0:13:39.000 --> 0:13:41.360 and no one ever comes back and says, like, WHOA, 0:13:41.360 --> 0:13:43.800 my prediction was wrong. They just keep making new prediction. 0:13:44.559 --> 0:13:48.000 But what history tells us is that crashes are normal 0:13:48.120 --> 0:13:50.840 and recoveries are normal too. The US stock market has 0:13:50.880 --> 0:13:56.400 survived the Great Depression, world Wars, Black Monday, the dot 0:13:56.440 --> 0:14:01.040 com crash, COVID, the two thousand and eight COVID inflation, 0:14:01.600 --> 0:14:05.600 all these things, and yet from nineteen thirty six to 0:14:05.679 --> 0:14:10.040 twenty twenty five, there's never been a negative rolling twenty 0:14:10.120 --> 0:14:13.520 year period for the US stock market, not one. And 0:14:13.559 --> 0:14:16.600 think about your favorite pop star, Like every celebrity has 0:14:16.600 --> 0:14:19.720 a flop Era I mean, Taylor had people saying her 0:14:19.760 --> 0:14:21.479 career was over before. 0:14:21.360 --> 0:14:22.360 Nineteen eighty nine. 0:14:23.120 --> 0:14:25.920 Then she literally became the biggest pop star on Earth. 0:14:26.000 --> 0:14:29.280 You know, businesses are similar. You have ups and downs, 0:14:29.320 --> 0:14:33.120 but the market keeps evolving. The new winners replace old ones, 0:14:33.160 --> 0:14:35.720 and so I don't spend my life trying to predict 0:14:35.760 --> 0:14:38.400 the next crash, but I do spend my life making 0:14:38.400 --> 0:14:41.960 sure I'm invited to the recovery. And because the market 0:14:42.000 --> 0:14:45.280 will never reward the person who predicted the best, it 0:14:45.320 --> 0:14:47.920 will reward the person who stayed in the game. I 0:14:48.040 --> 0:14:49.720 also to remember that the market doesn't go up in 0:14:49.760 --> 0:14:53.080 a straight line. It's going to zigzag. But historically, the 0:14:53.080 --> 0:14:56.520 people who got rich weren't the ones who perfectly tied 0:14:56.560 --> 0:14:59.880 every crash. They're just the ones who kept investing while 0:15:00.040 --> 0:15:01.440 everyone else was panicking. 0:15:02.200 --> 0:15:04.240 I mean, if you think about Drake, last year, we 0:15:04.240 --> 0:15:06.360 were laughing at him, and this year we're dancing with him, 0:15:06.400 --> 0:15:06.920 so like. 0:15:07.000 --> 0:15:10.080 Yeah, yeah, I guess. 0:15:10.320 --> 0:15:13.200 So when COVID happened and the market took a really 0:15:13.240 --> 0:15:15.280 big downturn, I was hanging out with a good friend 0:15:15.320 --> 0:15:17.760 of mine who taught me a lot about finance, and 0:15:17.800 --> 0:15:20.120 he was talking to me about this kind of boom 0:15:20.200 --> 0:15:21.960 bust cycle, and he was like, you know, hey, man, 0:15:22.040 --> 0:15:24.720 I just lost a ton of money in the stock 0:15:24.760 --> 0:15:27.640 market today. But he says it doesn't matter because it's 0:15:27.680 --> 0:15:30.960 on paper. It doesn't become real until I take it out, 0:15:31.200 --> 0:15:33.400 and I'm not retiring today. In fact, he was thirty 0:15:33.440 --> 0:15:34.960 years old at the time. He's like, I'm not retiring 0:15:35.000 --> 0:15:37.960 for like thirty years, and in thirty years, the market 0:15:38.000 --> 0:15:40.400 will most certainly have recovered to the point where I'll 0:15:40.400 --> 0:15:41.800 be able to take out an amount of money that 0:15:41.880 --> 0:15:44.840 I'll need in retirement. Basically, what he was saying is 0:15:44.960 --> 0:15:47.920 you don't need to be checking the stock market every day, 0:15:48.080 --> 0:15:49.720 especially if you're not close to your goal. 0:15:50.160 --> 0:15:52.360 That does bring up a question for me too, of 0:15:52.440 --> 0:15:55.040 like how often should we check to make sure you're 0:15:55.040 --> 0:15:58.280 like on track and doing okay, but not like freaking 0:15:58.320 --> 0:16:00.560 out over Oh I'm fifty dollars dawn today. 0:16:01.160 --> 0:16:03.520 Honestly, way less than you think. And I think it 0:16:03.560 --> 0:16:06.080 also has to do with your own disposition, Like I 0:16:06.240 --> 0:16:09.800 really look quarterly. I have friends who look every day, 0:16:09.960 --> 0:16:12.080 but don't look at your portfolio the way that you 0:16:12.120 --> 0:16:13.800 look at your ex. You know, you don't need to 0:16:13.840 --> 0:16:16.000 be checking it on them every five minutes. You know. 0:16:17.440 --> 0:16:19.480 I would also say I tell people to watch their 0:16:19.520 --> 0:16:22.560 portfolios the way that they watch bramo Oh, where it's like, oh, 0:16:22.600 --> 0:16:27.240 there's drama, something's happening, but I'm not actually reacting. I'm 0:16:27.280 --> 0:16:29.920 just watching it for entertainment and then moving on my day. 0:16:30.520 --> 0:16:33.120 But you know, if you're investing for retirement or for 0:16:33.200 --> 0:16:35.840 long term wealth, checking it every day is not going 0:16:35.880 --> 0:16:37.040 to make you a better investor. 0:16:37.080 --> 0:16:38.920 It's just going to make you more emotional. 0:16:39.400 --> 0:16:39.600 You know. 0:16:40.040 --> 0:16:43.120 Imagine planting a tree. You wouldn't dig it up every 0:16:43.200 --> 0:16:46.440 morning to see if the roots had grown overnight. You 0:16:46.440 --> 0:16:48.720 would water it, you would give it sunlight, and then 0:16:48.760 --> 0:16:50.120 you would let time do its thing. 0:16:50.200 --> 0:16:51.840 And that's the same thing with investing. 0:16:52.520 --> 0:16:55.920 The more often that people look at their portfolios, the 0:16:55.960 --> 0:16:59.320 more opportunities they have to sort of panic over normal 0:16:59.400 --> 0:17:02.840 market swayings, and that panic can be really expensive. So 0:17:02.880 --> 0:17:05.480 I would just say set it up, automate it, and 0:17:05.520 --> 0:17:07.360 live your life. And this also gives you a lot 0:17:07.359 --> 0:17:09.919 of freedom because I think we all think, oh, in 0:17:10.040 --> 0:17:11.879 order to be good with money, we have to be 0:17:12.000 --> 0:17:16.000 obsessed with our portfolios. We have to become like Gording Gecko, 0:17:16.440 --> 0:17:20.760 get like an old school phone, scream into it by sell, buy, sell, 0:17:20.800 --> 0:17:23.639 and it's like, no, girl, you can actually live your 0:17:23.720 --> 0:17:26.359 damn life. This can be something that is happening fully 0:17:26.400 --> 0:17:28.240 in the background, and you don't have to make it 0:17:28.280 --> 0:17:30.480 your whole personality. It can just be part of how 0:17:30.520 --> 0:17:32.560 you live your life the same way you, you know, 0:17:32.640 --> 0:17:35.400 might order groceries. That doesn't mean that like every day 0:17:35.440 --> 0:17:37.840 you're going on Fresh Direct or whatever and like looking 0:17:37.920 --> 0:17:39.160 at other groceries. 0:17:39.280 --> 0:17:41.600 You're just it's happening once a week. 0:17:42.040 --> 0:17:44.040 So we're a little bit more confident about the stock 0:17:44.080 --> 0:17:45.960 market and going up and maybe we're going to be 0:17:46.000 --> 0:17:47.640 in the market for a little bit longer, so we're 0:17:47.680 --> 0:17:51.000 ready to start investing, right But before we invest I 0:17:51.000 --> 0:17:54.960 think it's a really good idea to talk about investing goals. 0:17:55.359 --> 0:17:57.399 So what are some of the most common goals people 0:17:57.440 --> 0:18:00.840 have for investing and how does that change their strategy 0:18:00.880 --> 0:18:02.520 in terms of what they're investing in. 0:18:03.200 --> 0:18:09.480 Well, you mentioned something earlier about timelines, and I love 0:18:09.520 --> 0:18:12.320 that because before you invest even a single dollar, you 0:18:12.440 --> 0:18:16.440 need to talk about your goal. And it really does 0:18:16.480 --> 0:18:19.680 depend on your timeline when you need the money, because 0:18:19.760 --> 0:18:22.120 think about investing like packing for a trip, Like you're 0:18:22.160 --> 0:18:25.560 not going to pack the same suitcase for a weekend 0:18:25.600 --> 0:18:28.080 in Miami as you would for a month in Europe, 0:18:28.520 --> 0:18:31.600 and your money sort of needs different luggage depending on. 0:18:31.560 --> 0:18:32.320 Where it's going. 0:18:32.920 --> 0:18:36.480 So the three most common investing goals that I see 0:18:36.600 --> 0:18:40.320 are retirement, which is usually decades away and so you 0:18:40.359 --> 0:18:44.119 can generally afford to invest for long term growth and 0:18:44.240 --> 0:18:47.960 ride out the ups and downs. The second most common 0:18:48.000 --> 0:18:51.159 investing goal is buying a home. If you're planning to 0:18:51.200 --> 0:18:54.080 buy in the next few years, your strategy should be 0:18:54.160 --> 0:18:57.200 way more conservative because you don't want to market downturn 0:18:57.760 --> 0:19:00.840 cutting your down payment in half before clothes. So that 0:19:00.960 --> 0:19:03.760 might be that you're putting it into a safer vehicle, 0:19:03.920 --> 0:19:07.280 like maybe we're putting in a higled savings account or 0:19:07.320 --> 0:19:10.560 a certificate of deposit, which we can break down to 0:19:10.600 --> 0:19:14.520 these are just like savings accounts that have higher rates 0:19:14.560 --> 0:19:16.679 than one at your bank. It's not going to give 0:19:16.720 --> 0:19:18.439 you the same return as a stock market, but what 0:19:18.480 --> 0:19:21.800 you get in return is security you know that your 0:19:21.800 --> 0:19:25.359 money will be there. And then the third most common 0:19:25.400 --> 0:19:29.040 investing goal is really just general wealth building. You just 0:19:29.080 --> 0:19:31.320