Welcome to How Do They Afford That, The podcast that peaks into the financial lives of everyday Australians.

Welcome to How Do They Afford That, The podcast that peaks into the financial lives of everyday Australians.

I'm Michael Thompson.

I'm Michael Thompson.

I'm an author and the co host of the podcast Fear and Greed Business News, and as always, I'm with Canna Campbell, financial planner, founder of Sugar Mama TV, the financial literacy platform covering YouTube and podcast, books, Instagram, threads, TikTok and more. If there is a social media platform out there, you will be on it.

I'm an author and the co host of the podcast Fear and Greed Business News, and as always, I'm with Canna Campbell, financial planner, founder of Sugar Mama TV, the financial literacy platform covering YouTube and podcast, books, Instagram, threads, TikTok and more. If there is a social media platform out there, you will be on it.

Canna, Hello, this.

Canna, Hello, this.

Looks sound like I'm like plastered everywhere.

Looks sound like I'm like plastered everywhere.

Okay, you're more selective than that. I might have misrepresented you, and I apologize. It's always great to start the show with an apology, isn't it such.

Okay, you're more selective than that. I might have misrepresented you, and I apologize. It's always great to start the show with an apology, isn't it such.

On a good note?

On a good note?

Great episode.

Great episode.

Well, it's a serious.

Well, it's a serious.

One today and this is very serious.

One today and this is very serious.

I feel like we've now had too much kind of fun frivolity. We've exceeded our fun quota already. Now it's serious because we've seen some extraordinary volatility in markets this year. We've had kind of huge swings one way then back the other way. We saw it on the Australian share market. It was even more pronounced on Wall Street in the US. A lot of it was originating from tariffs announced by the US President, but that was just one incident, right. We have had plenty of market volatility before, kind of major drops like the GFC or the pandemic, plenty of other smaller peaks and troughs and movement in markets. So today I wanted to get a feel for how you coach clients as a financial planner through market volatility because it is something that we have seen in the past and we'll see again in the future. It is obviously very important with this episode to understand that everything that we are talking about is not financial advice. This is for gen education purposes. Only. If you hear something that you go, oh, okay, maybe that's worth considering, then please get some professional financial advice that is tailored to your circumstances because we do not know what they are.

I feel like we've now had too much kind of fun frivolity. We've exceeded our fun quota already. Now it's serious because we've seen some extraordinary volatility in markets this year. We've had kind of huge swings one way then back the other way. We saw it on the Australian share market. It was even more pronounced on Wall Street in the US. A lot of it was originating from tariffs announced by the US President, but that was just one incident, right. We have had plenty of market volatility before, kind of major drops like the GFC or the pandemic, plenty of other smaller peaks and troughs and movement in markets. So today I wanted to get a feel for how you coach clients as a financial planner through market volatility because it is something that we have seen in the past and we'll see again in the future. It is obviously very important with this episode to understand that everything that we are talking about is not financial advice. This is for gen education purposes. Only. If you hear something that you go, oh, okay, maybe that's worth considering, then please get some professional financial advice that is tailored to your circumstances because we do not know what they are.

That is so incredibly important. Hopefully everyone knows that and takes that seriously.

That is so incredibly important. Hopefully everyone knows that and takes that seriously.

Now, when markets are swinging wildly and your phone rings and it is a client who is worried and this is this has happened before, right, oh absolutely, and they are worried. They are probably almost verging on panic. What do you say to them, I.

Now, when markets are swinging wildly and your phone rings and it is a client who is worried and this is this has happened before, right, oh absolutely, and they are worried. They are probably almost verging on panic. What do you say to them, I.

Say, take a deep breath in through the nose out through the investment anxiety.

Say, take a deep breath in through the nose out through the investment anxiety.

And does that work?

And does that work?

Yes, okay, just having someone tell you to calm down actually does help.

Yes, okay, just having someone tell you to calm down actually does help.

Well. The worst thing you can say to someone's calmed down.

Well. The worst thing you can say to someone's calmed down.

Yeah, I realized that as I said it deep breath.

Yeah, I realized that as I said it deep breath.

So I then remind them once we've taken out you know, three deep. You call them rainbow breaths. Really, yes, a rainbow breath.

So I then remind them once we've taken out you know, three deep. You call them rainbow breaths. Really, yes, a rainbow breath.

I have never heard the term. I will describe to you for anybody listening what you were doing. You were taking deep breaths and you are kind of flapping your arms about wildly. Yes, like a chicken.

I have never heard the term. I will describe to you for anybody listening what you were doing. You were taking deep breaths and you are kind of flapping your arms about wildly. Yes, like a chicken.

It's very effective. Once you've done a rainbow breaths in through the nose, out, through the investment anxiety, I then remind them to revisit the reason why they came to see me in the first place. Why do they start investing and what are their long term goals? Now with my investment philosophy, you know, as a financial planet, and obviously is sugar mammo, it's all about passive income and you know, drawing on that reliable income stream, you know, for your eventual retirement and We're not here to try and turn ten thousand dollars into one hundred thousand dollars overnight, So you know, I'll come back to then some factual questions. Okay, well, what are your goals and are we planning on retiring tomorrow? And obviously the answer is no, so then we know that we've got time ahead of us. And then after that I'll ask them to look at focusing their fear to the actual facts of the matter. You know, reviewing the portfolio, do we need to maybe make a slight rebalance of the portfolio? Is it still aligned to the goals? Have your goals changed? And let's do another risk profile to make sure that you know the investment portfolios up to date, your risk tolerance on that before you.

It's very effective. Once you've done a rainbow breaths in through the nose, out, through the investment anxiety, I then remind them to revisit the reason why they came to see me in the first place. Why do they start investing and what are their long term goals? Now with my investment philosophy, you know, as a financial planet, and obviously is sugar mammo, it's all about passive income and you know, drawing on that reliable income stream, you know, for your eventual retirement and We're not here to try and turn ten thousand dollars into one hundred thousand dollars overnight, So you know, I'll come back to then some factual questions. Okay, well, what are your goals and are we planning on retiring tomorrow? And obviously the answer is no, so then we know that we've got time ahead of us. And then after that I'll ask them to look at focusing their fear to the actual facts of the matter. You know, reviewing the portfolio, do we need to maybe make a slight rebalance of the portfolio? Is it still aligned to the goals? Have your goals changed? And let's do another risk profile to make sure that you know the investment portfolios up to date, your risk tolerance on that before you.

Go past that.

Go past that.

Is there a danger of doing a risk profile in the middle of a financial crisis that all of a sudden they will be very reflective of the environment that you're doing it in that if you were to say, okay, what's what's your appetite for risk right now? When they've just seen the market drop five percent something, then of course they're going to say, no, no, I'm very conservative. Now I don't want to lose any money or is it better to kind of look at the long term trend and look at what their risk profile was six months ago.

Is there a danger of doing a risk profile in the middle of a financial crisis that all of a sudden they will be very reflective of the environment that you're doing it in that if you were to say, okay, what's what's your appetite for risk right now? When they've just seen the market drop five percent something, then of course they're going to say, no, no, I'm very conservative. Now I don't want to lose any money or is it better to kind of look at the long term trend and look at what their risk profile was six months ago.

You kind of answered my question. So yeah, so that is why you go back to the original. That's so I said. You know, the first thing you ask is, well, why did you sudden what your goals? Because you want, you know, a passive income stream, you want financial independence, So looking at that doing a risk profile, but starting with looking at where what your risk profile looked like when you first started. Because a good risk profile is actually an educational tool. It's not just a matter of serving someone you know, seven to twelve questions. It actually is an educational tool as well. So if your financial planner has done the right job, which I would hope, so you actually understand the risks involved, so you're not like you're not it's like you're turning up financially dumb and doing a risk profile. Yes, you may have heightened emotions and that's normal and that's okay, but that's where the you know, the awareness that comes in. And by no means this is about ignoring what's happening right now, but it's actually about responding with a purpose. Not actually panicking.

You kind of answered my question. So yeah, so that is why you go back to the original. That's so I said. You know, the first thing you ask is, well, why did you sudden what your goals? Because you want, you know, a passive income stream, you want financial independence, So looking at that doing a risk profile, but starting with looking at where what your risk profile looked like when you first started. Because a good risk profile is actually an educational tool. It's not just a matter of serving someone you know, seven to twelve questions. It actually is an educational tool as well. So if your financial planner has done the right job, which I would hope, so you actually understand the risks involved, so you're not like you're not it's like you're turning up financially dumb and doing a risk profile. Yes, you may have heightened emotions and that's normal and that's okay, but that's where the you know, the awareness that comes in. And by no means this is about ignoring what's happening right now, but it's actually about responding with a purpose. Not actually panicking.

Okay, is panic? What you see is panic the kind of the main emotional reaction that you are seeing during times of volatility or is there confusion? Is it in action? People going I feel like I need to be doing something, but I just don't know what.

Okay, is panic? What you see is panic the kind of the main emotional reaction that you are seeing during times of volatility or is there confusion? Is it in action? People going I feel like I need to be doing something, but I just don't know what.

Yes, so it's a mix and you know, anxiety, but also a lot of people don't tell wrap is is. I see a lot of excitement, a lot of relief, and also a lot of exhilaration because this is now quite possibly the opportunity that a lot of people have been waiting for to get started. And they can see that Okay, well, I'm able to buy the same quality assets now at a discount. And if you are educated, if you spend time understanding the risks involved and the amount of time that's required, you know, to invest in that particular asset class, they can actually see that these are you know, blessings in disguise and actually seize them to their financial advantage. And at the end of the day, like money loves a calm head. So if you are if you arm yourself with knowledge, you get some really good quality independent advice, you can actually turn this to be at a very powerful moment in helping you get ahead potentially sooner in a more efficient way.

Yes, so it's a mix and you know, anxiety, but also a lot of people don't tell wrap is is. I see a lot of excitement, a lot of relief, and also a lot of exhilaration because this is now quite possibly the opportunity that a lot of people have been waiting for to get started. And they can see that Okay, well, I'm able to buy the same quality assets now at a discount. And if you are educated, if you spend time understanding the risks involved and the amount of time that's required, you know, to invest in that particular asset class, they can actually see that these are you know, blessings in disguise and actually seize them to their financial advantage. And at the end of the day, like money loves a calm head. So if you are if you arm yourself with knowledge, you get some really good quality independent advice, you can actually turn this to be at a very powerful moment in helping you get ahead potentially sooner in a more efficient way.

I want to ask you.

I want to ask you.

I've got a lot that I want to ask you here, and so we need to keep moving. But one of those things is about this concept of time in the market versus timing the market, and we'll get to that in a second. But younger investors are they generally, and this is an assumption, are they generally more reactive to market movements, and maybe because they are more open to the opportunities that it presents, because they've got more time.

I've got a lot that I want to ask you here, and so we need to keep moving. But one of those things is about this concept of time in the market versus timing the market, and we'll get to that in a second. But younger investors are they generally, and this is an assumption, are they generally more reactive to market movements, and maybe because they are more open to the opportunities that it presents, because they've got more time.

You know, what is actually not about age, It's actually more about education and experience. Now, I've seen obviously twenty five year olds who are as cool as a cucumber, and I've seen fifty five year olds who will panic at every single you know, red candle. So what makes the biggest difference is how well someone understands what they have actually invested in and why, and understood the amount of time that's needed to allow that investment to work its magic for them. And you've also got to look at how much money someone's got at stake. You know, if someone's put their entire life savings into crypto or single tech stock. Of course they are going to be panicking and they're going to be refreshing their portfolios like it's Instagram. But give that same person, you know, a boring blue chip, you know, diversified portfolio with a long term strategy, their reaction is going to be comparatively different to that other person and they're going to be slipping a lot better regardless of whether they're twenty to thirty two or seventy two.

You know, what is actually not about age, It's actually more about education and experience. Now, I've seen obviously twenty five year olds who are as cool as a cucumber, and I've seen fifty five year olds who will panic at every single you know, red candle. So what makes the biggest difference is how well someone understands what they have actually invested in and why, and understood the amount of time that's needed to allow that investment to work its magic for them. And you've also got to look at how much money someone's got at stake. You know, if someone's put their entire life savings into crypto or single tech stock. Of course they are going to be panicking and they're going to be refreshing their portfolios like it's Instagram. But give that same person, you know, a boring blue chip, you know, diversified portfolio with a long term strategy, their reaction is going to be comparatively different to that other person and they're going to be slipping a lot better regardless of whether they're twenty to thirty two or seventy two.

Okay, And is that then where the idea of time in the market is going to come into it, particularly if you've got to say younger people, because they know that they've got potentially forty years for it just to like markets come and go, they swing, and they generally thoughtistically keep climbing over the long period.

Okay, And is that then where the idea of time in the market is going to come into it, particularly if you've got to say younger people, because they know that they've got potentially forty years for it just to like markets come and go, they swing, and they generally thoughtistically keep climbing over the long period.

No, the what you're saying is because time in the market is like pitched to younger investors, but really time in the market is appropriate for ninety percent of investors because even someone in their fifties, they if they're planning on living a long, healthier life, which I hope they are, you know, with life expectancy you know, eighty five on average, depending on you know, male or female. That's still you know, a good thirty five years. That's still a long time investment time, so you still have that time in market, time in the market. So look, you know it's trying to time the market is obviously a different thing else when you're trying to like pick the blowest and I think trying to time the market rather than timing the market is fraught with dangerous kind of like jumping on a treadmill that's already moving at a really fast speed, and it's that's it's stupid, it's risky, it's dangerous, and you're probably going to fall flat on your face and come up with a few bruises or even broken back bones and a pretty damaged ego. But time in the market, which we all have, in my opinion, is safer. You know, It's like getting on a treadmill that's moving, not going particularly fast, it might even be a little bit boring, but that speed like gradually increases and before you know it, you're actually traveling quite a decent distance, and you know, building up a financial fitness along the way, working up a bit of a sweat, and actually feeling really good about yourself. So you know, this is the a sorry you're looking frowning at me with my lovely analogies O that it was quite brilliant.

No, the what you're saying is because time in the market is like pitched to younger investors, but really time in the market is appropriate for ninety percent of investors because even someone in their fifties, they if they're planning on living a long, healthier life, which I hope they are, you know, with life expectancy you know, eighty five on average, depending on you know, male or female. That's still you know, a good thirty five years. That's still a long time investment time, so you still have that time in market, time in the market. So look, you know it's trying to time the market is obviously a different thing else when you're trying to like pick the blowest and I think trying to time the market rather than timing the market is fraught with dangerous kind of like jumping on a treadmill that's already moving at a really fast speed, and it's that's it's stupid, it's risky, it's dangerous, and you're probably going to fall flat on your face and come up with a few bruises or even broken back bones and a pretty damaged ego. But time in the market, which we all have, in my opinion, is safer. You know, It's like getting on a treadmill that's moving, not going particularly fast, it might even be a little bit boring, but that speed like gradually increases and before you know it, you're actually traveling quite a decent distance, and you know, building up a financial fitness along the way, working up a bit of a sweat, and actually feeling really good about yourself. So you know, this is the a sorry you're looking frowning at me with my lovely analogies O that it was quite brilliant.

Of the treadmill treadmill, but it sounds as at some point they got off the treadmill and actually ran for a distant somewhere else.

Of the treadmill treadmill, but it sounds as at some point they got off the treadmill and actually ran for a distant somewhere else.

No, they jumped on the treadmill that was going really quickly trying to time the market, and fell flat on their face. Because that is risky, dangerous and just lawsuit waiting to happen.

No, they jumped on the treadmill that was going really quickly trying to time the market, and fell flat on their face. Because that is risky, dangerous and just lawsuit waiting to happen.

Can you explain to me we hear the term dollar cost averaging a lot. Can you just explain kind of what that means just as a piece of jargon and whether that is something that will come up in conversations with people during volatile periods in markets.

Can you explain to me we hear the term dollar cost averaging a lot. Can you just explain kind of what that means just as a piece of jargon and whether that is something that will come up in conversations with people during volatile periods in markets.

Dollar cost averaging is one of my favorite investing strategies. You could say, okay, So it's essentially when you are buying on small amounts on a regular basis, and it's particularly helpful for when you know the markets are a little bit you know, wobbly and there's a bit of short term uncertainty. So you have a fixed amount, say one hundred dollars per month, and you are investing it regardless of what is going on the markets, whether they're up or down. And the beauty of it is that when prices are down, you're actually getting more bang for your buck because you're able to buy for the same amount of money. You're able to acquire more shares, for example, And obviously when the market is up, you're getting not as getting as many, but over the long run, it kind of evens out and smooths out your initial purchase over time, kind of like buying chocolate bars each week with the price varies.

Dollar cost averaging is one of my favorite investing strategies. You could say, okay, So it's essentially when you are buying on small amounts on a regular basis, and it's particularly helpful for when you know the markets are a little bit you know, wobbly and there's a bit of short term uncertainty. So you have a fixed amount, say one hundred dollars per month, and you are investing it regardless of what is going on the markets, whether they're up or down. And the beauty of it is that when prices are down, you're actually getting more bang for your buck because you're able to buy for the same amount of money. You're able to acquire more shares, for example, And obviously when the market is up, you're getting not as getting as many, but over the long run, it kind of evens out and smooths out your initial purchase over time, kind of like buying chocolate bars each week with the price varies.

You just can't help yourself, can you.

You just can't help yourself, can you.

I feel like it makes sense when you use an analogy. I know, I love an analogy, but you use so many and an anecdot.

I feel like it makes sense when you use an analogy. I know, I love an analogy, but you use so many and an anecdot.

Yeah, I find the anecdotes really illuminate the story. The analogies kind of muddy the water a little, just a little bit on occasion. So that's dollar cost averaging. How often do you think people should be checking their investment portfolios during these kind of rocky periods if markets are sliding? Is it worth checking in or are you better just to go? You know what, looking at it now is going to evoke too much of an emotional response, and I don't want to be emotional about this, you know, I was.

Yeah, I find the anecdotes really illuminate the story. The analogies kind of muddy the water a little, just a little bit on occasion. So that's dollar cost averaging. How often do you think people should be checking their investment portfolios during these kind of rocky periods if markets are sliding? Is it worth checking in or are you better just to go? You know what, looking at it now is going to evoke too much of an emotional response, and I don't want to be emotional about this, you know, I was.

Actually having a conversation the other day with a financial plan who I know really well, and we had conflicting opinions on this. So it really does depend on your own individual situation and your own investment strategy. Obviously, I would recommend avoid checking it on a daily basis or even weekly basis, but you also want to make sure that you stay informed at the same time. So for some people that might be monthly that is better for them, but for other people might be quarterly, or for me, I only check it when I actually want to invest. I've got new money to add to the portfolio, That's when I'll check.

Actually having a conversation the other day with a financial plan who I know really well, and we had conflicting opinions on this. So it really does depend on your own individual situation and your own investment strategy. Obviously, I would recommend avoid checking it on a daily basis or even weekly basis, but you also want to make sure that you stay informed at the same time. So for some people that might be monthly that is better for them, but for other people might be quarterly, or for me, I only check it when I actually want to invest. I've got new money to add to the portfolio, That's when I'll check.

In, okay, And that way you're checking with purpose as opposed to just checking for the heck of it, which would probably start to worry you.

In, okay, And that way you're checking with purpose as opposed to just checking for the heck of it, which would probably start to worry you.

Well, you become attached to it. It creates, you know, these emotional knee jerk reactions. But can I add an important tip when you do go and check your portfolio, don't just look at the portfolio evaluation to check and see what is the income that you have earned from that investment, very easy to do, particular with your superannuation accounts, you can see what last year's financial year's income was how look good at what it is year to date. Most of subernuation accounts. You can actually do this yourself by running a check on the returns. If the income hasn't dropped. Feel a little more assured because it means your investment is potentially working for you. Obviously, get advice when in doubt, but don't get caught up in the actual portfolio evaluation because the share market doesn't necessarily reflect the value.

Well, you become attached to it. It creates, you know, these emotional knee jerk reactions. But can I add an important tip when you do go and check your portfolio, don't just look at the portfolio evaluation to check and see what is the income that you have earned from that investment, very easy to do, particular with your superannuation accounts, you can see what last year's financial year's income was how look good at what it is year to date. Most of subernuation accounts. You can actually do this yourself by running a check on the returns. If the income hasn't dropped. Feel a little more assured because it means your investment is potentially working for you. Obviously, get advice when in doubt, but don't get caught up in the actual portfolio evaluation because the share market doesn't necessarily reflect the value.

Okay, we'll come back in a second.

Okay, we'll come back in a second.

I want to talk about diversification and products that people use to reduce that volatility risk, and whether there is actually a right time to actually pull out of the market. We will get into that after the break. Can we are talking about investing in volatile markets, and of course this is not investing or financial advice. You should see professional advice if you hear anything here that is relevant to your circumstances.

I want to talk about diversification and products that people use to reduce that volatility risk, and whether there is actually a right time to actually pull out of the market. We will get into that after the break. Can we are talking about investing in volatile markets, and of course this is not investing or financial advice. You should see professional advice if you hear anything here that is relevant to your circumstances.

Are there products that.

Are there products that.

In a typical portfolio people use to help reduce the volatility risk?

In a typical portfolio people use to help reduce the volatility risk?

Yes, and this is really important. So things like listed investment company, ETFs, exchange shade of funds, talents manage funds, and you know, bonds, fixed interest investments. They can be used to help smooth out all of those you know, nasty bumps. They don't obviously completely eliminate the risk involved, but they can definitely cushion those falls and reduce those like you know, gut churning swings that you know we're seeing right now, and you know they are obviously to help make sure that your money is working for you and obviously in alignment to your risk profile. So always check that.

Yes, and this is really important. So things like listed investment company, ETFs, exchange shade of funds, talents manage funds, and you know, bonds, fixed interest investments. They can be used to help smooth out all of those you know, nasty bumps. They don't obviously completely eliminate the risk involved, but they can definitely cushion those falls and reduce those like you know, gut churning swings that you know we're seeing right now, and you know they are obviously to help make sure that your money is working for you and obviously in alignment to your risk profile. So always check that.

Okay, diversification, just how important is that in getting someone through the ups and downs? And we're not necessarily talking about the big fluctuations like we saw after the tariffs, but just the day to day kind of movement within the market. How important is diversification.

Okay, diversification, just how important is that in getting someone through the ups and downs? And we're not necessarily talking about the big fluctuations like we saw after the tariffs, but just the day to day kind of movement within the market. How important is diversification.

It's everything. So diversification spreads your risk across you know, a wide range of different assets. I know we talk a lot about shares, but there's you know, so many other things beyond shares and property. So it also means that your money is not necessarily tied to one particular location. So you think about different industries, different countries, and they're not positively align necessary. So you might see volatility in the Australian share market, but then you may see strength in the property market and vice versa. So one area drops, the other one held is perhaps holding steady, and then maybe you know, some fixed interest investments are actually rising depending on what the underlying investment is. So it's about not putting all your eggs in one basket, but making sure that it's actually working for you and what allows you to have a good night sleep.

It's everything. So diversification spreads your risk across you know, a wide range of different assets. I know we talk a lot about shares, but there's you know, so many other things beyond shares and property. So it also means that your money is not necessarily tied to one particular location. So you think about different industries, different countries, and they're not positively align necessary. So you might see volatility in the Australian share market, but then you may see strength in the property market and vice versa. So one area drops, the other one held is perhaps holding steady, and then maybe you know, some fixed interest investments are actually rising depending on what the underlying investment is. So it's about not putting all your eggs in one basket, but making sure that it's actually working for you and what allows you to have a good night sleep.

Still, I'm really curious about the conversations that you have with clients during these periods when there is volatility in markets. How do you help a client distinguish between what is a short term wobble in the market compared to what might be a fundamental shift in markets. How do you kind of help them sit down and go, all right, this might be around for a long time.

Still, I'm really curious about the conversations that you have with clients during these periods when there is volatility in markets. How do you help a client distinguish between what is a short term wobble in the market compared to what might be a fundamental shift in markets. How do you kind of help them sit down and go, all right, this might be around for a long time.

Look, you have to look at what's the actual underlying cause, what is really going on, and that is when you most financial plans will reach out to economists, you know, go through a whole pile of research data, reports and opinions and work with the client as to what they think and also what they're feeling and what they feel comfortable with. But you know, a financial plannerl always understands what the client's goals are and what the time frame involves. So they're not looking at necessarily being strategic and you know, predicting the next crash or the next massive opportunity. So really understanding the real risks involved and what is actually in alignment to what the client wants.

Look, you have to look at what's the actual underlying cause, what is really going on, and that is when you most financial plans will reach out to economists, you know, go through a whole pile of research data, reports and opinions and work with the client as to what they think and also what they're feeling and what they feel comfortable with. But you know, a financial plannerl always understands what the client's goals are and what the time frame involves. So they're not looking at necessarily being strategic and you know, predicting the next crash or the next massive opportunity. So really understanding the real risks involved and what is actually in alignment to what the client wants.

Are you saying then that really shouldn't let the volatility affect your long term plans. That keep your eyes on whatever the goals are that you set when you first sat down and started discussing, Just focus on those rather than trying to be too reactive in the short term.

Are you saying then that really shouldn't let the volatility affect your long term plans. That keep your eyes on whatever the goals are that you set when you first sat down and started discussing, Just focus on those rather than trying to be too reactive in the short term.

What's the headline versus what's the act rule factually happening right now, So not getting caught up in the noise and arming yourself with the right amount of information so that you understand and if you need to make a sudden change, you're prepared. But really, again coming back to that, why what is your ultimate goal? And looking back in history to see, well, what happened previously when similar things like this happen, and you know, human endeavor always prevails. You know, if you look back over a twenty thirty forty year period, you know the markets are always recovered.

What's the headline versus what's the act rule factually happening right now, So not getting caught up in the noise and arming yourself with the right amount of information so that you understand and if you need to make a sudden change, you're prepared. But really, again coming back to that, why what is your ultimate goal? And looking back in history to see, well, what happened previously when similar things like this happen, and you know, human endeavor always prevails. You know, if you look back over a twenty thirty forty year period, you know the markets are always recovered.

I feel a bit silly asking you this next question, but I have never shied away from asking asking you potentially silly questions on this podcast, Is there ever a time when pulling out of the market is actually the right move?

I feel a bit silly asking you this next question, but I have never shied away from asking asking you potentially silly questions on this podcast, Is there ever a time when pulling out of the market is actually the right move?

Yes, So when the strategy isn't right, the investments aren't aligned to your goals, your time frame, or your risk profile, it can definitely be the right time to go. You know what, enough enough, this isn't actually working for me, And that's why you need advice because they're also consequences of selling, like triggering capital gains tax or locking in losses, and then there might be strategic ways that you can help minimize those things. So it's not actually about you know, panic selling, but it's actually about consciously reassessing and making value based decisions on choice. And it takes a lot of courage, particularly if you've designed your own financial strategy yourself, to actually go, you know what, I thought I was doing the right thing here, but I've stuffed it. I've done the wrong thing, and I need to undo this and start all over again. And that's when obviously you've got to go see a financial plan so that you don't have any regrets and you get proactive advice that is strategic as well as about the underlying investments.

Yes, So when the strategy isn't right, the investments aren't aligned to your goals, your time frame, or your risk profile, it can definitely be the right time to go. You know what, enough enough, this isn't actually working for me, And that's why you need advice because they're also consequences of selling, like triggering capital gains tax or locking in losses, and then there might be strategic ways that you can help minimize those things. So it's not actually about you know, panic selling, but it's actually about consciously reassessing and making value based decisions on choice. And it takes a lot of courage, particularly if you've designed your own financial strategy yourself, to actually go, you know what, I thought I was doing the right thing here, but I've stuffed it. I've done the wrong thing, and I need to undo this and start all over again. And that's when obviously you've got to go see a financial plan so that you don't have any regrets and you get proactive advice that is strategic as well as about the underlying investments.

So what you're really saying is that that was actually a very good question.

So what you're really saying is that that was actually a very good question.

It was very good.

It was very good.

Yeah, thank you entirely. Unprompted praise just then from you, very quickly, because we are out of time now. Have you seen it happen where someone has panicked and perhaps may made a poor financial decision, maybe just gone independently of the advice that you were giving them, and might not even be a client, made a poor financial decision because of volatility in markets.

Yeah, thank you entirely. Unprompted praise just then from you, very quickly, because we are out of time now. Have you seen it happen where someone has panicked and perhaps may made a poor financial decision, maybe just gone independently of the advice that you were giving them, and might not even be a client, made a poor financial decision because of volatility in markets.

Yes, me.

Yes, me.

Wow. Yeah.

Wow. Yeah.

So when I was at university, before I started studying financial planning, I had invested a lot of money, which was a lot of money at the time for me, into a international fund and there was a short term pullback and the value of the investment dropped significantly and I panicked and I sold the whole entire thing and I locked in those losses. Wow.

So when I was at university, before I started studying financial planning, I had invested a lot of money, which was a lot of money at the time for me, into a international fund and there was a short term pullback and the value of the investment dropped significantly and I panicked and I sold the whole entire thing and I locked in those losses. Wow.

Yeah.

Yeah.

Do I regret it, Of course I do. But it was a really powerful lesson for me at the time, and I have never made that same mistake again, And you know, it's part of my own financial story, and I've made peace with that, and you know, we all make mistakes. The thing is not to make the same mistake again.

Do I regret it, Of course I do. But it was a really powerful lesson for me at the time, and I have never made that same mistake again, And you know, it's part of my own financial story, and I've made peace with that, and you know, we all make mistakes. The thing is not to make the same mistake again.

Okay, flip side. Have you then seen someone who stayed the core through volatility and it really paid off in the long run, is it you?

Okay, flip side. Have you then seen someone who stayed the core through volatility and it really paid off in the long run, is it you?

Again?

Again?

Well yes, But actually, all my financial planning clients, like I've been a financial planner for twenty something years, I've never had a client sell their portfolio during you know, a market correction, crash or pullback. Yes, I've had phone calls and meetings about what should we do? You know, do we even buy more? Do you know how can we manage this? Yes? Absolutely, and that that's all part of being a financial planner. But I've never actually had a client who's sold during a pullback, And every single person has said, thank goodness, we didn't. You know, I listened to your advice, Thank goodness. And that's not to always smoke at my own backsize, but it is important to remind yourself as to what is the big picture here? And you know, if it means just taking a step back and turning down the noise, that's okay, as long as you're still informed. You know, we want to make sure that we have no regrets, and if we do need to make a decision, we do it with all the information that we need so that we can feel good about what we've decided to do.

Well yes, But actually, all my financial planning clients, like I've been a financial planner for twenty something years, I've never had a client sell their portfolio during you know, a market correction, crash or pullback. Yes, I've had phone calls and meetings about what should we do? You know, do we even buy more? Do you know how can we manage this? Yes? Absolutely, and that that's all part of being a financial planner. But I've never actually had a client who's sold during a pullback, And every single person has said, thank goodness, we didn't. You know, I listened to your advice, Thank goodness. And that's not to always smoke at my own backsize, but it is important to remind yourself as to what is the big picture here? And you know, if it means just taking a step back and turning down the noise, that's okay, as long as you're still informed. You know, we want to make sure that we have no regrets, and if we do need to make a decision, we do it with all the information that we need so that we can feel good about what we've decided to do.

I really like where you started, not obviously the rainbow breaths that was quite odd, but I did like the idea of just just stop, take a moment, think about it, and go back to the reasons why you were investing in the first place. It feels like that would really kind of center you and maybe take a little bit of the reactive element and the emotional element out of it and help you refocus back on the long term goals.

I really like where you started, not obviously the rainbow breaths that was quite odd, but I did like the idea of just just stop, take a moment, think about it, and go back to the reasons why you were investing in the first place. It feels like that would really kind of center you and maybe take a little bit of the reactive element and the emotional element out of it and help you refocus back on the long term goals.

And it's funny, you know, people always say the markets, you know, they haven't started investing yet because it's too expensive, but then when these pullbacks happen, they then get scared. It's like, welly have you been saying it's too expensive. Now you're able to buy those things, those investments now at a significant discount. You're now too scared. So this I think this is a really exciting opportunity for a lot of people who have, you know, long term financial goals in place.

And it's funny, you know, people always say the markets, you know, they haven't started investing yet because it's too expensive, but then when these pullbacks happen, they then get scared. It's like, welly have you been saying it's too expensive. Now you're able to buy those things, those investments now at a significant discount. You're now too scared. So this I think this is a really exciting opportunity for a lot of people who have, you know, long term financial goals in place.

And it is a very good time to be getting financial advice.

And it is a very good time to be getting financial advice.

Yes, this not buying advice, is go get professional advice and jump on this opportunity. In an educated and informed manner with a financial planner that can help you and hold.

Yes, this not buying advice, is go get professional advice and jump on this opportunity. In an educated and informed manner with a financial planner that can help you and hold.

You around absolutely all right, how do we find you if we want more information?

You around absolutely all right, how do we find you if we want more information?

If you want to hear more about my rainbow Breath, so you can reach out to me at a Sugar Mama TV.

If you want to hear more about my rainbow Breath, so you can reach out to me at a Sugar Mama TV.

On Instagram and you can hear me every day with Sean Aylmer on Fear and Greed daily business news for people who make their own decisions. Thank you very much for listening to how do they afford that? Remember to follow on the podcast. That's very important, and the best thing that you can do is actually tell somebody else, tell them about this podcast, send them the link to this episode if you think that it's something that they might be interested in, and help spread the word about how do they afford that?

On Instagram and you can hear me every day with Sean Aylmer on Fear and Greed daily business news for people who make their own decisions. Thank you very much for listening to how do they afford that? Remember to follow on the podcast. That's very important, and the best thing that you can do is actually tell somebody else, tell them about this podcast, send them the link to this episode if you think that it's something that they might be interested in, and help spread the word about how do they afford that?

Thank you for your company. Join us again next week

Thank you for your company. Join us again next week