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Speaker 1: Welcome to How the Money. I'm Joel and I in

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Speaker 1: Matt and today we are discussing rideshare, inflation, pay transparency,

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Speaker 1: and emotional investing. That's right, Joel, this is our Friday

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Speaker 1: Flight episode. And on the note of emotional investing, we've

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Speaker 1: had quite the roller coaster week. You'd like to sob

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Speaker 1: when you're dollar cost averaging the index funds, don't you. Honestly,

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Speaker 1: typically the sobbing comes when you do the lump sum

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Speaker 1: investing because it's so it can be so nerve wracking

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Speaker 1: for individuals. We're not gonna get into all of that,

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Speaker 1: but we wanted to mention this specifically because we're gonna

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Speaker 1: talk with Lindsay Bell on the second half of this episode.

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Speaker 1: We've had her on before talking about E s G funds,

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Speaker 1: which is investing in a more environmental social governance sort

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Speaker 1: of way that responsible investing exactly. But we're gonna talk

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Speaker 1: about emotions and the different traps that we can follow

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Speaker 1: into when we're trained to time the markets with all

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Speaker 1: the volatility that we have seen. We're gonna talk all

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Speaker 1: about that in the second half of this episode. But first,

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Speaker 1: you wanted to talk about your new bathroom or something

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Speaker 1: like that. Speaking of sobbing. Uh, there's a vanity that

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Speaker 1: we've we've you know, we've we've planned out everything that

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Speaker 1: we're buying for the renovation that we're doing on new

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Speaker 1: master bath new master bathroom, getting a new vanity, and

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Speaker 1: I picked it out a while back. I can't wait

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Speaker 1: to get in there and you know, mess it up,

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Speaker 1: do what I need to do. Well, it's uh, there's

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Speaker 1: just I mean, we I feel like we found just

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Speaker 1: stylistically wise and then value ratio wise. It was like,

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Speaker 1: all right, this is the one for us. And then man, dude,

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Speaker 1: inflation is real. It is absolutely real. And I shared

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Speaker 1: an example last week of with the Airbnb example where

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Speaker 1: I was able to ask for a discount and I

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Speaker 1: got it. In this case, I was unsuccessful, and so

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Speaker 1: I want to share my fails too. But yeah, the

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Speaker 1: price on the vanity went up just because and so

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Speaker 1: I reached out just on on the chat feature on

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Speaker 1: their website and I'm like, hey, you know, so obviously

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Speaker 1: I totally understand why prices are going up right and

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Speaker 1: making this thing out like what's going on? What kind

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Speaker 1: of upgrades? We know? It really is it's the shipping

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Speaker 1: delays They're like, listen, you know we sep costs, shipping

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Speaker 1: costs and delays have costs are costing us a lot,

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Speaker 1: and so we have to make up for it, and

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Speaker 1: that's why this vanity costs more than it did in July. Uh.

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Speaker 1: And I'm like, okay, no, I get I get it,

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Speaker 1: but is there any chance I can get I don't know,

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Speaker 1: we can meet in the middle and I can get

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Speaker 1: a ten percent off cup on code And they're like,

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Speaker 1: well no, but uh, you know, it was totally cool.

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Speaker 1: I totally respect it because it's a small business who's

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Speaker 1: doing a good job at least of letting their their

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Speaker 1: customers know why these price increases are happening. I realize,

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Speaker 1: and I get the necessity for it, um, but I'm

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Speaker 1: also willing to at least ask the question. Yeah, you

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Speaker 1: gotta be willing, although you know, sometimes you fall fla

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Speaker 1: out in your face, and with this specific product, this

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Speaker 1: isn't something that you're super flexible, like you've identified the

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Speaker 1: one you want and because she could totally go back

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Speaker 1: to the drawing board right and try to find something.

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Speaker 1: But the problem is, like I'm thinking about just how

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Speaker 1: long it's gonna take for even show up, and so

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Speaker 1: you probably needed to go ahead and order that just

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Speaker 1: to make sure it shows up this year instead of

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Speaker 1: you know, it's showing up months and months from now.

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Speaker 1: And anybody who's trying tried to do any sort of

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Speaker 1: renovation right now realizes that ordering windows and doors and

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Speaker 1: lumber and concrete and vanities and lighting all the stuff

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Speaker 1: is just taking longer to get there and stuff you

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Speaker 1: and iimally've been looking at it, and some of the

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Speaker 1: stuff is out of stock, you know, And uh, it's

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Speaker 1: just it's just part of the deal right now. But

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Speaker 1: you gotta roll with the punches and sometimes, Yeah, if

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Speaker 1: it was a different piece, I'm told I'm more than

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Speaker 1: willing to go back to the drawing board. This was

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Speaker 1: a piece we identified. It's kind of like the rug

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Speaker 1: in the Big Lebowski kind of ties the whole room together,

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Speaker 1: and I really think a little more unique this vanity

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Speaker 1: is going to tie the whole bathroom together. So yeah,

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Speaker 1: when you when you come over to the house, don't

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Speaker 1: mess it up. I hope it looks good, all right.

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Speaker 1: So before we get to our stories this week, our

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Speaker 1: Friday Flights, Joe, we wanted to share with listeners that

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Speaker 1: we are in Austin, Texas and we're having a beer

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Speaker 1: hang So head over to Instagram, head over to Facebook

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Speaker 1: search how to Money. On Instagram you can search how

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Speaker 1: to money pod and you can find details as to

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Speaker 1: when and where we are hanging out. But if you

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Speaker 1: are in the Austin area, we hope to see you tonight.

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Speaker 1: All right, so let's go ahead and get to our stories.

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Speaker 1: Let's talk about some streaming television. We like talking about

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Speaker 1: some of the different streaming services and whatnot that are

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Speaker 1: out there, but this is one that is no longer around.

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Speaker 1: Low Cast. We've actually talked about them on the show

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Speaker 1: before they're officially dead. A judge ruled this week that

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Speaker 1: low cast can no longer operate. Uh and the homepage

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Speaker 1: flow cast dot org reflects that. You know what I

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Speaker 1: gotta say to that, good Yeah, yeah, you weren't a fan.

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Speaker 1: I mean we really so the way it worked low cast,

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Speaker 1: they were attempting to bring local channels to your streaming

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Speaker 1: platform for quote unquote free, but they weren't actually doing

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Speaker 1: a great job of it because like what they are

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Speaker 1: doing is essentially blackmailing users to donate. So it's a nonprofit,

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Speaker 1: so they can't force you to pay money, but they

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Speaker 1: can kind of blackmail you to do it by kicking

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Speaker 1: you off of the service like every five to ten minutes. Uh.

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Speaker 1: And so because of that, users were actually ponying up

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Speaker 1: to support this quote unquote nonprofit streaming company, mostly out

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Speaker 1: of annoyance. But the judge ruled that locast they were

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Speaker 1: making too much money, like they were making more than

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Speaker 1: what was necessary to keep that site running. Uh. And

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Speaker 1: so because of that, they said that they weren't actually

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Speaker 1: behaving like a nonprofit, which is true. And so I

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Speaker 1: like the idea of being able to get your local

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Speaker 1: channels streaming, but honestly, we would just tell folks just

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Speaker 1: to buite the bullet by a digital HD over the

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Speaker 1: air antenna. That's honestly the easiest way to get the

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Speaker 1: best quality for the best price. And so if you want,

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Speaker 1: like last weekend, if you wanted to watch the Emmys,

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Speaker 1: just flip it over to CBS, find your local CBS

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Speaker 1: channel and it would have come through crystal clear. Yeah

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Speaker 1: that's right, Yeah, you get you're gonna get a better

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Speaker 1: picture of doing that. Anyway, once you make that initial

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Speaker 1: investment of buying the antenna complete, it's completely free after

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Speaker 1: that so it's definitely a better move than low Cast.

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Speaker 1: And I guess initially when I heard about low Cast,

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Speaker 1: I was excited. I was like, this is this is

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Speaker 1: gonna be cool. It seems cool, and then it wasn't cool.

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Speaker 1: I remember being so frustrated, like trying to watch something

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Speaker 1: on there and then like they boot you off and

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Speaker 1: you've gotta like go all the way back in and

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Speaker 1: unless you donate, And then I'm like, oh my gosh, really, guys,

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Speaker 1: like uh, people are going to if you provide them

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Speaker 1: a good service, they will donate, but if you frustrate them,

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Speaker 1: they'll just stop using your service. That's how I felt

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Speaker 1: about it. But now none of us can use it.

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Speaker 1: But let's let's move on, Matt. Let's talk about rideshair inflation,

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Speaker 1: uber and lift prices have been rising in a big way,

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Speaker 1: and that's according to a new study by Racketing. Over

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Speaker 1: the past year, ride share prices have risen by about

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Speaker 1: fifty percent. Some cities have seen bigger price hikes than others.

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Speaker 1: Kind of depends on where you live. But there's a

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Speaker 1: shortage of drivers. That's the main reason for this. There

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Speaker 1: just aren't enough people willing to give rides through Uber

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Speaker 1: and lift right now, and we all get the basic

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Speaker 1: idea of supply and demand. Well, le's at work in

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Speaker 1: a big way right here. If you use rideshare regularly,

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Speaker 1: you already know that it costs more to get around,

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Speaker 1: and then it's been far more difficult even to get

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Speaker 1: a ride. So, yeah, when the supply of drivers decreases,

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Speaker 1: and then in addition to that, you see the demand

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Speaker 1: increase because more and more people are starting to get

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Speaker 1: comfortable trying to get back to living their lives a

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Speaker 1: little more normally, prices will likely continue to increase. That's

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Speaker 1: just kind of an important thing to factor in. And Matt,

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Speaker 1: especially as a one car family, something we have the

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Speaker 1: factor in more that our line item for rides here.

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Speaker 1: We don't really use it very much, almost never, but

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Speaker 1: it might have to increase if we do have to

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Speaker 1: use it more. Yeah, and you know, when you're looking

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Speaker 1: at the overall market, I feel like in some ways

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Speaker 1: this is good because drivers they're starting to get to

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Speaker 1: get paid more. Lift an Uber they've been offering sign

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Speaker 1: up bonuses for drivers, and wages in general have been

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Speaker 1: escalating pretty rapidly in the current economy. Like Amazon, for instance,

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Speaker 1: they just announced that the average starting salary for new

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Speaker 1: hires is going to be eighteen dollars an hour. Just

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Speaker 1: think about just how big of a jump that is

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Speaker 1: going to be from the average starting pay that we

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Speaker 1: were seeing just even just a couple of years ago.

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Speaker 1: And so, yeah, I'm not sure about you, but I'm

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Speaker 1: willing to pay a little bit more for my rise

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Speaker 1: and you know, and for my stuff if it means

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Speaker 1: that starting salaries are improving, if that means that the

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Speaker 1: economy in general is going to be in a healthier place.

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Speaker 1: And so we've seen a decrease in supply of driver's

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Speaker 1: droll like you mentioned, we're seeing an increase in the

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Speaker 1: number of folks who are wanting to get out there

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Speaker 1: and use right sharing. But also, so I mentioned those

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Speaker 1: bonuses that are being paid to drivers, what's really interesting

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Speaker 1: is that ubern Lift. I mean, over the years, they've

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Speaker 1: been subsidizing us uh AS drivers because they've been paying

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Speaker 1: drivers more with those bonuses. They've also been offering discounts

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Speaker 1: to writers. Essentially, we've been paying less as these companies

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Speaker 1: have been trying to increase their market share. But now

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Speaker 1: that these companies have, you know, are publicly traded, it's

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Speaker 1: gonna be necessary for them to trim some of this

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Speaker 1: fat in order for these companies to to be profitable.

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Speaker 1: And so just generally speaking, we are bound to see

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Speaker 1: the prices of uber and lift of right sharing increase

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Speaker 1: over the years. It's probably not ever going to be

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Speaker 1: as low as it has been over the past few years.

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Speaker 1: It's going to be something that we're just going to

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Speaker 1: be used to paying a little bit more from, you

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Speaker 1: know here moving forward, some of these companies they're all

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Speaker 1: about just growth at any cost for a while, even

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Speaker 1: at the expense of losing money, knowing that in the

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Speaker 1: end they own the market. Then they can start to

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Speaker 1: charge whatever they want. And it looks like me, we're

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Speaker 1: starting to see some of that transition where it's like cool,

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Speaker 1: now we dominate, nobody eases calves anymore, and so uh yeah,

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Speaker 1: we're now willing to charge more so that we can

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Speaker 1: increase company profits and increase investor profits. Uh let's talk

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Speaker 1: about the future of work for a second. Map The

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Speaker 1: bottom line actually, after reading this seeing this story in

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Speaker 1: the Visual Capitalists this week, that I took away was

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Speaker 1: if you want job security, work in healthcare and uh

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Speaker 1: so this Visual Capitalists they did, uh this great chart

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Speaker 1: about the jobs that are going to be in the

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Speaker 1: highest demand over the next twenty years, and it's just

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Speaker 1: really helpful, especially just to see things visually. Um that

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Speaker 1: site does a great job laying things out in that

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Speaker 1: way that just intuitively makes sense. But the jobs that

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Speaker 1: are gonna be in the highest demand over the next

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Speaker 1: two decades, they plotted those out and then they also

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Speaker 1: kind of showed which ones are going to pay the

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Speaker 1: most too. Nurse practitioner is the top in both categories.

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Speaker 1: There's gonna be just a huge demand for nurse practice

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Speaker 1: nurse and you're gonna get, hey, big money to do

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Speaker 1: it too. Physician assistance they're also up there. You can

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Speaker 1: easily make north of a hundred thousand dollars in either

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Speaker 1: of these roles. And let's say healthcare isn't your jam,

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Speaker 1: Like you don't really, you don't really want to go

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Speaker 1: down that path. Well, statisticians, information security analysts, and even

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Speaker 1: animal trainers are other jobs that will be in high

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Speaker 1: demand in the years to come. I thought that was interesting.

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Speaker 1: People are spending more money on their pets. Man, they

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Speaker 1: like their fur babies, that's true. I mean, yeah, maybe

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Speaker 1: more Caesar Millans is what we need out there in

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Speaker 1: this world, but that guy is still around. I don't know. Okay, well,

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Speaker 1: but it's just what we'll link to this one in

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Speaker 1: the show notes because it is so visual in nature. Uh,

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Speaker 1: it's it's helpful to see it laid out. But maybe

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Speaker 1: you'll find something in there and you'll say, okay, cool,

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Speaker 1: like knowing where the jobs are going to be in

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Speaker 1: the coming decades and which ones are going to pay well,

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Speaker 1: knowing what sectors are going to be hot, and just

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Speaker 1: because of an aging demographic that we have in the

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Speaker 1: United States, it's clear to me that this is accurate.

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Speaker 1: That healthcare is going to be a bigger and bigger

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Speaker 1: need and we need more workers, um, and that pay

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Speaker 1: is going to go up Accordingly, the rate of pay

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Speaker 1: is probably gonna grow at a faster rate than a

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Speaker 1: whole lot of other job sectors. And while it doesn't

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Speaker 1: make sense for you to choose a profession, you know,

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Speaker 1: I mean, this is how you're gonna spend your life,

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Speaker 1: so you don't only need to look at pay, but

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Speaker 1: it's definitely something that you want to keep in mind.

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Speaker 1: And that's certainly what we're gonna recommend folks to do here.

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Speaker 1: At how to money. And so actually, on the note

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Speaker 1: of pay, let's talk about pay transparency. It seems it's

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Speaker 1: always hard to know what you should ask, you know,

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Speaker 1: like during the hiring process, if you're interviewing for a

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Speaker 1: new job, like how hard should you push for more money?

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Speaker 1: What are other folks in similar roles at the company?

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Speaker 1: What are they getting paid? Uh? Well, there are some

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Speaker 1: states that are creating new pay transparency laws that are

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Speaker 1: going to force employers to make their pay levels public.

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Speaker 1: Colorado they enacted a similar law earlier this year. They

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Speaker 1: actually have the strictest pay transparency laws now. And these

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Speaker 1: pay transparency laws are going to go a long way

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Speaker 1: in making pay more equal. Uh there, It's gonna likely

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Speaker 1: prevent some discrimination. But these laws, they won't necessarily mean

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Speaker 1: that higher wages are going to come to all of

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Speaker 1: the states that enact them, right, Yeah, that that's that's true.

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Speaker 1: It kind of remains to be seen how these laws

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Speaker 1: are going to impact overall pay in the coming years.

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Speaker 1: It seems like it's a good thing on the surface,

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Speaker 1: but then yeah, there's actually this working paper mat that

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Speaker 1: was released earlier this year on the effects of these

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Speaker 1: types of laws, and this paper found that transparency reduces

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Speaker 1: I'm quoting here, transparency reduces the individual bargaining power of workers,

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Speaker 1: leading to lower average wages. And a key insight is

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Speaker 1: that employers credibly refused to pay high wages to any

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Speaker 1: one worker to avoid costly renegotiations with others under transparency.

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Speaker 1: So in situations where workers do not have individual bargaining power,

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Speaker 1: such as under a collective bargaining agreement or in markets

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Speaker 1: with posted wages, greater transparency has a muted impact on wages.

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Speaker 1: I thought that was interesting. That made a whole lot

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Speaker 1: of sense to me. And I think in one sense,

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Speaker 1: the lack of being able to talk about your pay,

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Speaker 1: which is not legal employers telling you that you can't

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Speaker 1: divulge your salary to your coworkers. That and the kind

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Speaker 1: of the harsh environment surrounding your ability to talk about

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Speaker 1: what you make has been unfortunate. It has been downright wrong.

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Speaker 1: But at the same time, I'm not sure that these

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Speaker 1: laws are going to actually accomplish what they set out

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Speaker 1: to accomplish. It's going to be interesting to see how

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Speaker 1: it plays out. But that's also what makes the United

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Speaker 1: States so great. We have these laboratories of democracy, these

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Speaker 1: states and it's like, cool, let's see how it plays

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Speaker 1: out in Colorado and other states will begin to make

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Speaker 1: determinations based on the results that we see from basically

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Speaker 1: this study. Yeah, well, and I like to that this

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Speaker 1: is a working paper or whatever. Like the results. You

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Speaker 1: know that the exactly the full conclusion has yet to

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Speaker 1: be determined. But I'm pro transparency because, like I understand

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Speaker 1: like they had to sort of theories here. One was

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Speaker 1: that like, well, in industries where the pay is already public,

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Speaker 1: it doesn't have any effect. Well, that makes sense because

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Speaker 1: if the pay is already posted, then there really isn't

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Speaker 1: going to be any impact from that, right. But then,

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Speaker 1: as far as the other argument, which is that they're

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Speaker 1: not going to want to raise wages at all because

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Speaker 1: they don't want to renegotiate other's wages. Who are going

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Speaker 1: to see that and be like, oh, hey, what about me?

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Speaker 1: But I feel like that's such a like a lazy

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Speaker 1: approach to management, because what you're saying, you're still competing

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Speaker 1: with other firms who might then rob your talent and

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Speaker 1: pay them more. Well if they're willing to deliver, right,

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Speaker 1: Because if you have an employee who's negotiated a higher wage,

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Speaker 1: hopefully you're paying them more because they're doing something. They're

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Speaker 1: bringing in maybe more business, or they're doing something in

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Speaker 1: addition to like their their standard roles. I feel like

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Speaker 1: if I was in charge of HR at a specific

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Speaker 1: company and you have this one employee and they're just

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Speaker 1: crushing it, and then you've got all these other employees

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Speaker 1: that have the exact same job title, and all of

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Speaker 1: a sudden, they know that they could potentially earn, say

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Speaker 1: twenty dollars more, And if they come knocking on my

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Speaker 1: door saying, hey, I would like to read negotiate my pay,

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Speaker 1: that then opens the door to a conversation with that

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Speaker 1: employee as to what that that star employee is doing.

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Speaker 1: And then you can say, well, if you would like that,

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Speaker 1: this is what this is probably going to look like.

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Speaker 1: And so in my mind, it means that you've got

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Speaker 1: a company who is going to have healthier conversations so

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Speaker 1: rounding pay and performance and the things that is going

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Speaker 1: to lead to, you know, to everybody doing a lot better,

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Speaker 1: not just individuals, and not just in an attempt to

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Speaker 1: keep pay roll under a certain level. Yeah, and either way,

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Speaker 1: whether you live in Colorado or a state that's looking

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Speaker 1: to enact some of these pay transparency laws, which there's

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Speaker 1: a couple that it's it looks like they might be

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Speaker 1: voted on this year. Well, it's important for you to

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Speaker 1: know what you're worth, and the internet has made it

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Speaker 1: much easier with through sites like glass door and stuff

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Speaker 1: like that to kind of see what others in your

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Speaker 1: industry and your same experience level are getting paid. And

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Speaker 1: so use those resources and push your employer even if

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Speaker 1: it's not public. And then don't be afraid to have

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Speaker 1: a conversation with a fellow employee that you trust and

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Speaker 1: who's a friend and say like, uh, sometimes those are

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Speaker 1: the conversations they get the ball rolling and you're like,

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Speaker 1: wait a second, I'm being underpaid, or that you can

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Speaker 1: help a friend realize maybe that they're being underpaid, and

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Speaker 1: some of these laws could be beneficial. That remains to

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Speaker 1: be seen, but there are at least some things that

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Speaker 1: you can be doing now in the pay arena that

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Speaker 1: don't involve your state legislature. So I guess our takeaway

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Speaker 1: for listeners is just go get paid more and just

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Speaker 1: to talk about money more. Because when it's something that

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Speaker 1: is not taboo, when it's something that we feel free

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Speaker 1: to talk about generally speaking, there's going to be more

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Speaker 1: transparency around that topic, and that's what we do here

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Speaker 1: on the show, no doubt. All right, well, Matt, we're

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Speaker 1: gonna take a break here, but then we're gonna bring

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Speaker 1: on Lindsay Bell and we're gonna talking about the emotions

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Speaker 1: tied to investing. How we should be responding to volatility

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Speaker 1: in the market. What effect should that have on our

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Speaker 1: investing strategy. Will get to that right after this. All right,

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Speaker 1: and now we are joined by Lindsay Bell. She's the

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Speaker 1: chief investment strategist for Ally invest. Lindsay, thanks for joining

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Speaker 1: us today. And you actually you just got back from

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Speaker 1: maternity leave. Is that right? Did you just have a baby?

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Speaker 1: I sure did. I have a beautiful seven month old

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Speaker 1: baby girl. So we're having so much fun with her,

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Speaker 1: and which any leave is the best? Right? And you

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Speaker 1: you just told us right before we started recording that

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Speaker 1: you've got a generous uh time off right for to

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Speaker 1: spend some time with your baby. That's great. Yeah, Ali

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Speaker 1: has a really great benefit package. And I actually had

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Speaker 1: five months off to be with my baby and do

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Speaker 1: the all the bonding and get used to it and

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Speaker 1: try to get some sleep and all that good stuff

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Speaker 1: that's so good, it's so important to Yeah, you've got

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Speaker 1: to consider all the different benefits that your employer offers you,

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Speaker 1: not exactly pay, maternity leave or even paternity to leave

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Speaker 1: is definitely something to consider, right and and then we

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Speaker 1: talked about that all the time because sometimes people's if

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Speaker 1: you just look at the bottom line at the pay thing,

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Speaker 1: but those, uh, those secondary benefits and employers offer are

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Speaker 1: so key. But lindsay, of course we wanted to bring

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Speaker 1: you on to talk about something's happening right now in

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Speaker 1: the world of investing, and so let's let's get to that, Like,

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Speaker 1: how how do you think investors should think about investing

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Speaker 1: with the market still really close to all time highs,

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Speaker 1: Like some folks feel like this is the worst time

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Speaker 1: to start investing. They're apprehensive to contribute to their four

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Speaker 1: own K, to their I ra A because they're like,

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Speaker 1: I'm I'm just waiting for that drop. And how do

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Speaker 1: you think that they should respond? Well, I think that

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Speaker 1: they should first take a pull up the SMPI chart

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Speaker 1: on the internet and look at it for as long

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Speaker 1: back as you can. And the general general trajectory of

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Speaker 1: the smp is higher so timing the market is not

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Speaker 1: as important as spending time in the market. I'm sure

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Speaker 1: you've heard that phrase before, and so I think getting

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Speaker 1: started now or whenever you have some excess cash is

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Speaker 1: the most prudent thing to do, because before you know it,

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Speaker 1: you're going to be ready to retire, or you're gonna

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Speaker 1: have certain financial goals that you're going to going to

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Speaker 1: want to have met, whether it's put sending a child

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Speaker 1: to college, paying for a wedding, paying for a fancy

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Speaker 1: vacation that you've been looking forward to, um or our

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Speaker 1: plethora of other things. It's going to be here before

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Speaker 1: you know it, So get started now, right, Well, So

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Speaker 1: there's a big difference though, between knowing these things and

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Speaker 1: feeling different things. And lets you actually wrote an article

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Speaker 1: about feelings a few months back. Uh, investors sentiment right

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Speaker 1: now like that just has a lot to do with

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Speaker 1: the ups and downs of the market. And so how

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Speaker 1: should individual investors work to limit the impact of their

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Speaker 1: emotions when it does come to their investing decisions? Yeah,

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Speaker 1: I mean, emotions really can get the best of us,

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Speaker 1: especially when it comes to investing. So one of the

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Speaker 1: key things I always tell investors, especially new investors. Emotions

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Speaker 1: impact new investors more than investors that have been in

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Speaker 1: the market for longer periods of time, but don't get

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Speaker 1: me wrong, they still play a role for the people

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Speaker 1: that have been in the market for for longer as well.

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Speaker 1: The number one thing I think you have to do

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Speaker 1: is set your mind straight and understand that there's going

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Speaker 1: to be volatility in the market and that there's going

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Speaker 1: to be uncertainty. That's what drives the market. Investors are

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Speaker 1: always fearful of what the next mad thing is going

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Speaker 1: to be to to pull the market lower, what could

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Speaker 1: be a black Swan event like the pandemic that we

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Speaker 1: saw last year, that could take the market down and

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Speaker 1: take it down hard. And if you're in your later

430
00:20:05,880 --> 00:20:08,800
Speaker 1: years of investing or reaching some of the goals that

431
00:20:08,920 --> 00:20:12,359
Speaker 1: you might have on the horizon, that can be feel

432
00:20:12,440 --> 00:20:15,679
Speaker 1: very uncomfortable and that can be painful. So I think

433
00:20:15,800 --> 00:20:19,240
Speaker 1: the first thing you need to do is embrace uncertainty,

434
00:20:19,280 --> 00:20:21,880
Speaker 1: but understand what your timeline is and if you are

435
00:20:21,920 --> 00:20:24,720
Speaker 1: getting close to reaching your goals, you need to act

436
00:20:24,760 --> 00:20:27,040
Speaker 1: differently than someone that is just getting started and has

437
00:20:27,080 --> 00:20:30,359
Speaker 1: a longer time horizon. What do you think is gonna

438
00:20:30,440 --> 00:20:33,119
Speaker 1: be the case when it comes to future volatility in

439
00:20:33,160 --> 00:20:35,480
Speaker 1: the stock market, do you think do you think that there's, um,

440
00:20:35,560 --> 00:20:38,840
Speaker 1: we're gonna see any differences moving forward, because like, think

441
00:20:38,880 --> 00:20:42,359
Speaker 1: about what happened with a pandemic response. Government involvement just

442
00:20:42,400 --> 00:20:44,960
Speaker 1: had this major impact on the fact that we didn't

443
00:20:45,040 --> 00:20:48,080
Speaker 1: enter into a more severe economic tailspan than we otherwise

444
00:20:48,080 --> 00:20:50,840
Speaker 1: would have. Do you think that that quick response and

445
00:20:51,200 --> 00:20:53,600
Speaker 1: seeing that it worked one time, like, are we going

446
00:20:53,640 --> 00:20:55,080
Speaker 1: to go back to the well in the future? Is

447
00:20:55,119 --> 00:20:59,760
Speaker 1: that going to potentially prevent more severe recessions moving forward? Um?

448
00:20:59,800 --> 00:21:03,680
Speaker 1: To you just see there being less volatility going forward

449
00:21:03,720 --> 00:21:06,720
Speaker 1: in the coming years, You know, I would say I

450
00:21:06,760 --> 00:21:10,639
Speaker 1: would expect more volatility coming forward in in the coming

451
00:21:10,720 --> 00:21:14,840
Speaker 1: years because the market is moving so much faster now

452
00:21:14,880 --> 00:21:19,440
Speaker 1: than it ever has. I mean, the the invention of technology,

453
00:21:19,920 --> 00:21:23,720
Speaker 1: the proliferation of information and education that is available to

454
00:21:24,200 --> 00:21:28,760
Speaker 1: even every day investors like ourselves versus just the big

455
00:21:28,800 --> 00:21:34,439
Speaker 1: institutional money managers out there has allowed the market to

456
00:21:34,480 --> 00:21:37,080
Speaker 1: move so much faster than it ever has in the past.

457
00:21:37,119 --> 00:21:40,520
Speaker 1: But then you also have like you mentioned, central bankers

458
00:21:40,640 --> 00:21:44,000
Speaker 1: or government officials moving so much faster to respond to

459
00:21:44,200 --> 00:21:47,480
Speaker 1: any major pullback in the market. Too, So you have

460
00:21:47,520 --> 00:21:49,720
Speaker 1: a couple of different things at play which allows the

461
00:21:49,760 --> 00:21:52,080
Speaker 1: market to move a heck of a lot faster than

462
00:21:52,240 --> 00:21:54,320
Speaker 1: it ever has in the past. So I would expect

463
00:21:54,359 --> 00:21:59,000
Speaker 1: volatility to continue in the years ahead. But I think

464
00:21:59,040 --> 00:22:01,560
Speaker 1: that's that's nothing to be afraid of. I think it's

465
00:22:01,560 --> 00:22:04,800
Speaker 1: something that we should all be able to embrace and

466
00:22:04,840 --> 00:22:08,800
Speaker 1: look forward to. And it helps. It actually should give

467
00:22:08,840 --> 00:22:12,320
Speaker 1: you almost a bit of a sense of of some

468
00:22:12,600 --> 00:22:16,840
Speaker 1: relief to understand that hopefully we'll be able to resolve

469
00:22:16,880 --> 00:22:18,719
Speaker 1: some of the bigger issues that come up in the

470
00:22:18,760 --> 00:22:21,840
Speaker 1: future a lot a lot faster. Now, that's no guarantee,

471
00:22:21,840 --> 00:22:26,080
Speaker 1: and we must always remember that, Uh, history always rhymes,

472
00:22:26,280 --> 00:22:30,160
Speaker 1: so it's always good to look back at history. Um.

473
00:22:30,200 --> 00:22:34,040
Speaker 1: There's no saying that the Great Financial Crisis can't happen again. Um,

474
00:22:34,080 --> 00:22:36,560
Speaker 1: but it's all going to be, you know, dependent on

475
00:22:36,680 --> 00:22:43,399
Speaker 1: government central bank response and also investor economic sentiment and

476
00:22:43,480 --> 00:22:46,960
Speaker 1: trajectory as well. Yeah, it's certainly a feature of the market,

477
00:22:47,440 --> 00:22:49,720
Speaker 1: not necessarily a bug though, I guess, based on what

478
00:22:49,760 --> 00:22:51,480
Speaker 1: you're saying here. But you know, kind of along of

479
00:22:51,480 --> 00:22:53,800
Speaker 1: that note, like, are you worried then about you know,

480
00:22:53,800 --> 00:22:56,760
Speaker 1: the rising amount of speculation the number of folks who

481
00:22:56,800 --> 00:22:59,560
Speaker 1: are trying to time the market jump in when when

482
00:22:59,600 --> 00:23:03,040
Speaker 1: things are UH is speculating ever a good move? And

483
00:23:03,320 --> 00:23:05,199
Speaker 1: how do you think our listeners should think about the

484
00:23:05,480 --> 00:23:09,040
Speaker 1: just the dichotomy of investing for the long haul versus

485
00:23:09,119 --> 00:23:12,400
Speaker 1: speculating into here now, Yeah, you know, I do worry

486
00:23:12,440 --> 00:23:15,720
Speaker 1: about the amount of speculation that has UM. We've seen

487
00:23:16,000 --> 00:23:18,920
Speaker 1: rise in the market in the past year with more

488
00:23:19,040 --> 00:23:21,880
Speaker 1: I p o s, a lot of SPACs or special

489
00:23:21,920 --> 00:23:27,119
Speaker 1: purpose acquisition companies UM where companies go public through these

490
00:23:27,400 --> 00:23:29,919
Speaker 1: through these financial instruments where they don't have to go

491
00:23:29,960 --> 00:23:33,480
Speaker 1: through the typical process to go public, the more rigorous

492
00:23:33,560 --> 00:23:37,400
Speaker 1: process of going public, and and and f T S, Bitcoin,

493
00:23:37,520 --> 00:23:40,400
Speaker 1: all these types of things that are much more speculative

494
00:23:40,400 --> 00:23:43,280
Speaker 1: in nature. That has piqued the interest of individuals that

495
00:23:43,480 --> 00:23:47,240
Speaker 1: haven't really been involved in the market before. That's somewhat

496
00:23:47,240 --> 00:23:50,280
Speaker 1: concerning when you see arise so quickly in the interest

497
00:23:50,359 --> 00:23:53,280
Speaker 1: of those types of things and less of an interest

498
00:23:53,320 --> 00:23:56,080
Speaker 1: in in the long term investing. That has always been

499
00:23:56,119 --> 00:23:59,960
Speaker 1: my perspective is to be a long term UH investor

500
00:24:00,040 --> 00:24:04,560
Speaker 1: and invest based on fundamentals or the potential growth of

501
00:24:04,600 --> 00:24:06,760
Speaker 1: a company, the potential for a company to grow both

502
00:24:06,800 --> 00:24:10,640
Speaker 1: revenues and earnings on the bottom line. So I tend

503
00:24:10,680 --> 00:24:13,480
Speaker 1: to lean more towards a long term investing because it's

504
00:24:13,520 --> 00:24:16,400
Speaker 1: tried and true. There's a lot of history there um

505
00:24:16,520 --> 00:24:19,040
Speaker 1: and also there's a lot of history around different types

506
00:24:19,040 --> 00:24:21,760
Speaker 1: of speculation in the market, and usually it doesn't end

507
00:24:21,760 --> 00:24:24,359
Speaker 1: to well. Now that being said, if you do have

508
00:24:24,400 --> 00:24:26,280
Speaker 1: some extra money on the side, and I like to

509
00:24:26,320 --> 00:24:29,000
Speaker 1: call that fun money that you want to play with

510
00:24:29,200 --> 00:24:31,160
Speaker 1: and you want to try it out some of these

511
00:24:31,200 --> 00:24:35,040
Speaker 1: more speculative or more volatile areas of the market, go

512
00:24:35,240 --> 00:24:39,240
Speaker 1: for it. But understand that you can lose a lot,

513
00:24:39,280 --> 00:24:41,520
Speaker 1: if not all, of your money when you invest in

514
00:24:41,520 --> 00:24:43,720
Speaker 1: those types of assets. And if you're going to invest

515
00:24:43,760 --> 00:24:49,240
Speaker 1: in speculative asset classes or individual securities, then also make

516
00:24:49,280 --> 00:24:52,840
Speaker 1: sure that that's going to be a short term type

517
00:24:52,840 --> 00:24:55,280
Speaker 1: of trade and you need to be prepared to have

518
00:24:55,400 --> 00:24:57,880
Speaker 1: a plan for when to sell. And I think that's

519
00:24:57,920 --> 00:25:01,120
Speaker 1: the biggest problem even long term investors have, is one

520
00:25:01,240 --> 00:25:04,080
Speaker 1: to sell. So that's going to be key in any

521
00:25:04,119 --> 00:25:07,840
Speaker 1: speculative investment. And let's say because of some of the

522
00:25:07,840 --> 00:25:11,080
Speaker 1: stimulus payments, and maybe we're just spending less because we've

523
00:25:11,119 --> 00:25:13,440
Speaker 1: been home a little bit more. And when you look

524
00:25:13,480 --> 00:25:17,280
Speaker 1: at the statistics, there's just record levels of cash that

525
00:25:17,320 --> 00:25:19,639
Speaker 1: people have in bank accounts right now. And that's a

526
00:25:19,640 --> 00:25:22,719
Speaker 1: good thing, right. People have really taking taking this this

527
00:25:22,840 --> 00:25:25,240
Speaker 1: past year and a half to beef up their savings

528
00:25:25,440 --> 00:25:27,880
Speaker 1: to pay down debt. Um we're big fans of that.

529
00:25:28,119 --> 00:25:31,359
Speaker 1: But how do our listeners even start thinking about where

530
00:25:31,400 --> 00:25:34,400
Speaker 1: to invest extra money that they may currently have hang

531
00:25:34,480 --> 00:25:37,639
Speaker 1: out and savings that they've like accumulated some of this

532
00:25:37,720 --> 00:25:39,480
Speaker 1: and they've been waiting on a on a drop and

533
00:25:39,480 --> 00:25:41,560
Speaker 1: then it hasn't happened. It's like, well, how do they

534
00:25:41,600 --> 00:25:44,720
Speaker 1: start to then put that money to use and actually

535
00:25:44,920 --> 00:25:48,000
Speaker 1: get it into the market. Yeah, it's amazing the consumer.

536
00:25:48,040 --> 00:25:49,760
Speaker 1: If you look at some of the stats out there,

537
00:25:49,760 --> 00:25:52,159
Speaker 1: like you said, the amount of cash and deposits, the

538
00:25:52,160 --> 00:25:55,639
Speaker 1: amount of cash and money market funds. Uh, individuals are

539
00:25:55,680 --> 00:25:59,600
Speaker 1: in a much better financial situation now than they were

540
00:25:59,680 --> 00:26:02,960
Speaker 1: pre pandemic, and people kind of got smart about their money.

541
00:26:03,080 --> 00:26:06,920
Speaker 1: I think the pandemic scared people and into realizing that

542
00:26:06,960 --> 00:26:10,159
Speaker 1: they need to be prepared for another pandemic type of

543
00:26:10,240 --> 00:26:13,919
Speaker 1: event where they might lose their job or um be

544
00:26:14,000 --> 00:26:16,320
Speaker 1: going through a very uncertain period of time where they

545
00:26:16,400 --> 00:26:19,240
Speaker 1: might not have any income. So people have right sized

546
00:26:19,280 --> 00:26:21,880
Speaker 1: their balance sheet, as we like to say, and they

547
00:26:21,920 --> 00:26:26,320
Speaker 1: do because of that, have some extra money on the sidelines. Um.

548
00:26:26,400 --> 00:26:28,000
Speaker 1: And so when you have an extra money and you

549
00:26:28,040 --> 00:26:29,760
Speaker 1: want to put it into the market, we're big fans

550
00:26:29,760 --> 00:26:32,320
Speaker 1: of putting money into the market because, um, we're big

551
00:26:32,320 --> 00:26:37,159
Speaker 1: believers in that being a great mechanism for growing wealth.

552
00:26:37,600 --> 00:26:40,560
Speaker 1: I think what you first need to think about is, Okay,

553
00:26:40,640 --> 00:26:42,560
Speaker 1: is my financial house in order? Do I have a

554
00:26:42,560 --> 00:26:45,679
Speaker 1: game plan to pay down the debt that I that

555
00:26:45,800 --> 00:26:49,560
Speaker 1: I currently have? Do I have enough money for an

556
00:26:49,560 --> 00:26:53,000
Speaker 1: emergency fund? And are all my bills accounted for? And

557
00:26:53,000 --> 00:26:55,320
Speaker 1: then if you have leftover money you want to put

558
00:26:55,320 --> 00:26:58,480
Speaker 1: it to work, that's great news. Uh. The first thing

559
00:26:58,480 --> 00:27:00,000
Speaker 1: you need to figure out that was what is your

560
00:27:00,119 --> 00:27:02,639
Speaker 1: goals for that money? Is it going to be just

561
00:27:02,760 --> 00:27:06,040
Speaker 1: for funds speculative or you putting it in the market

562
00:27:06,119 --> 00:27:10,239
Speaker 1: because you want to put it towards your retirement or

563
00:27:10,320 --> 00:27:13,800
Speaker 1: is it maybe a medium term goal that you have

564
00:27:14,440 --> 00:27:16,840
Speaker 1: on the horizon, say you want to buy a new

565
00:27:16,880 --> 00:27:19,960
Speaker 1: house or or a new car five or ten years

566
00:27:19,960 --> 00:27:22,720
Speaker 1: down the road. First get that straight because that's going

567
00:27:22,800 --> 00:27:25,640
Speaker 1: to determine how you're going to invest right and then

568
00:27:25,720 --> 00:27:28,520
Speaker 1: determine if you want to be hands on or hands off.

569
00:27:28,520 --> 00:27:30,800
Speaker 1: That's the second step. What type of investor do you

570
00:27:30,800 --> 00:27:32,680
Speaker 1: want to be? Because if you want to be hands off,

571
00:27:32,720 --> 00:27:34,840
Speaker 1: you don't have a lot of time to dedicate to it.

572
00:27:35,359 --> 00:27:39,760
Speaker 1: I would suggest looking into a robo advisor or manage

573
00:27:39,840 --> 00:27:44,159
Speaker 1: portfolio which we offer an ally invest whereby you answer

574
00:27:44,200 --> 00:27:48,199
Speaker 1: a couple of questions and we take into consideration what

575
00:27:48,320 --> 00:27:51,480
Speaker 1: your timeline is, your risk tolerances, and things like that,

576
00:27:51,840 --> 00:27:54,400
Speaker 1: and recommend a type of portfolio that we've already put

577
00:27:54,440 --> 00:27:56,600
Speaker 1: together for you that you could put your money and

578
00:27:56,640 --> 00:28:01,840
Speaker 1: it's diversified UM and focused on what your your goals

579
00:28:01,880 --> 00:28:04,359
Speaker 1: are going to be, and then you can kind of

580
00:28:04,400 --> 00:28:07,359
Speaker 1: set it and forget it. Though I always recommend checking

581
00:28:07,400 --> 00:28:10,119
Speaker 1: in at least a couple of times a year on

582
00:28:10,240 --> 00:28:12,720
Speaker 1: where your where your money is at UM and how

583
00:28:12,760 --> 00:28:15,360
Speaker 1: it's invested. But if you want to be more hands on,

584
00:28:15,800 --> 00:28:17,600
Speaker 1: then you take that money and you need to think

585
00:28:17,640 --> 00:28:20,360
Speaker 1: about how how do I want to split this up.

586
00:28:20,840 --> 00:28:24,520
Speaker 1: I always recommend putting a portion of the money that

587
00:28:24,560 --> 00:28:27,760
Speaker 1: you put into the market into an index fund like

588
00:28:27,880 --> 00:28:30,320
Speaker 1: the Spy which tracks the S and P five HUND

589
00:28:30,440 --> 00:28:35,280
Speaker 1: because you get automatic diversification across five companies. Then, depending

590
00:28:35,280 --> 00:28:37,480
Speaker 1: on how much money you have, you want to figure

591
00:28:37,480 --> 00:28:40,600
Speaker 1: out how you want to divide that up. Maybe there's

592
00:28:40,640 --> 00:28:43,000
Speaker 1: a small portion of that you want to put into,

593
00:28:43,400 --> 00:28:47,920
Speaker 1: say a cryptocurrency or some of these other speculative stocks

594
00:28:47,960 --> 00:28:51,400
Speaker 1: like we just talked about. But then maybe the remaining

595
00:28:51,480 --> 00:28:55,080
Speaker 1: portion you want to actively manage yourself in that you

596
00:28:55,120 --> 00:28:58,280
Speaker 1: want to pick individual securities. And what I always say

597
00:28:58,320 --> 00:29:01,560
Speaker 1: is if you have never invest did in any stocks before,

598
00:29:01,920 --> 00:29:05,320
Speaker 1: pick a stock that you know that you it's a

599
00:29:05,320 --> 00:29:08,200
Speaker 1: company or a brand that you use every day, Like

600
00:29:08,440 --> 00:29:11,280
Speaker 1: you know, the obvious one is like an Apple iPhone

601
00:29:11,400 --> 00:29:15,880
Speaker 1: or Samsung. You can buy their securities UM and it's

602
00:29:15,920 --> 00:29:18,440
Speaker 1: something that you know. Pick something you're passionate about. Maybe

603
00:29:18,520 --> 00:29:21,720
Speaker 1: for women it's estelat or as a type of you know,

604
00:29:21,800 --> 00:29:24,200
Speaker 1: makeup company that they like, or maybe you're a big

605
00:29:24,200 --> 00:29:27,680
Speaker 1: sneaker hound and you want to buy Nike shares. UM.

606
00:29:27,840 --> 00:29:31,960
Speaker 1: Start there, get used to how that individual or maybe

607
00:29:32,000 --> 00:29:37,080
Speaker 1: a couple individual stocks trade. Get used to understanding how

608
00:29:37,280 --> 00:29:41,840
Speaker 1: the stocks react when when companies report earnings, Do your homework,

609
00:29:41,880 --> 00:29:45,320
Speaker 1: do your research, and understanding where the growth for this

610
00:29:45,400 --> 00:29:48,840
Speaker 1: company is going to come from, understand what its value

611
00:29:49,040 --> 00:29:52,760
Speaker 1: is in the marketplace and versus its competitors, and it's

612
00:29:52,800 --> 00:29:54,680
Speaker 1: I'll leave it at Investing is not as hard as

613
00:29:54,720 --> 00:29:57,480
Speaker 1: a lot of people think. Um. I'm so happy that

614
00:29:57,560 --> 00:30:00,040
Speaker 1: the past year, the pandemic and the extra money of

615
00:30:00,160 --> 00:30:04,880
Speaker 1: people have been able to to collect has gotten people

616
00:30:04,880 --> 00:30:08,440
Speaker 1: more interested in investing, in taking care of their long

617
00:30:08,560 --> 00:30:12,160
Speaker 1: term needs in that manner and building wealth. So I

618
00:30:12,280 --> 00:30:15,960
Speaker 1: encourage people to to educate themselves and take that first

619
00:30:15,960 --> 00:30:19,480
Speaker 1: step and put their money into the market. That's right. Yeah, Uh, Lindsay,

620
00:30:19,480 --> 00:30:21,280
Speaker 1: thanks so much for that advice. This is some great

621
00:30:21,280 --> 00:30:24,200
Speaker 1: advice for folks, especially as they're they're getting started and

622
00:30:24,280 --> 00:30:25,760
Speaker 1: kind of going back to what you said there at

623
00:30:25,760 --> 00:30:28,240
Speaker 1: the beginning in regards to just some of the crazy

624
00:30:28,360 --> 00:30:31,640
Speaker 1: volatility that we experienced, just zoom out, look at the

625
00:30:31,640 --> 00:30:33,480
Speaker 1: big picture, and I think that will help folks to

626
00:30:33,640 --> 00:30:36,160
Speaker 1: quell some of those fears they have here in the moment.

627
00:30:36,640 --> 00:30:38,760
Speaker 1: But again, yeah, this is we're speaking with Lindsay Bell

628
00:30:39,040 --> 00:30:41,800
Speaker 1: with Ally invest. Lindsay, thanks so much for joining us today.

629
00:30:42,120 --> 00:30:44,560
Speaker 1: Absolutely thanks for having me. All right, that was some

630
00:30:44,720 --> 00:30:48,760
Speaker 1: helpful investing chat, especially in uh of tumultuous weekends in

631
00:30:48,840 --> 00:30:52,440
Speaker 1: the stock market, and uh, lindsay so steady. I appreciate

632
00:30:52,480 --> 00:30:55,000
Speaker 1: her coming on to join us, UM, but yeah, that's

633
00:30:55,000 --> 00:30:58,000
Speaker 1: gonna do it for this Friday flight. And we're going

634
00:30:58,040 --> 00:31:01,040
Speaker 1: to have an interview on Monday with our pal go

635
00:31:01,280 --> 00:31:05,920
Speaker 1: Rick about the unspoken rules to workplace success. Looking forward

636
00:31:05,960 --> 00:31:08,760
Speaker 1: to that, But until next time, best friends Out, Best

637
00:31:08,800 --> 00:31:09,520
Speaker 1: Friends Out,