Latest / The Curve / RTC143: Why keeping your money in the bank is costing you money (from the archives).

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RTC143: Why keeping your money in the bank is costing you money (from the archives). · The Curve

• 0:00
  Welcome to Raisin the Curve, a podcast designed to teach you everything that you need to know to be better with your money.
• 0:06
  Come and learn alongside me, Sophie Hallwright, a total beginner from the finance expert Victoria Harris.
• 0:12
  So I've asked all of the questions you wish you could so that finance and besting and growing your wealth actually makes sense.
• 0:18
  Yes, it's expert education but with promise will not be boring and in the wise words of sheer...
• 0:22
  My mom said to me, you know sweetheart, one day you should settle down and marry a rich man.
• 0:28
  My mom, I am a rich man. Come and talk and learn and laugh with us because together we really can raise the curve.
• 0:36
  We're taking a bit of a trip down memory lane, a big trip down way back down the lane.
• 0:42
  Years and years ago, it's hard to even remember this part of our life to be honest.
• 0:46
  I saw images of us in the first studio we ever rented and we look so different.
• 0:54
  So different, so young.
• 0:56
  I was actually just looking at some videos before of me talking to camera.
• 1:00
  I was like smile, look, smile.
• 1:04
  It's amazing how much we have talked.
• 1:07
  It's just also like thank you for everyone for having the patience for when we were starting out.
• 1:14
  So interestingly I was thinking that for ages and then after listening to this episode and thinking,
• 1:20
  I wish we really should re-release this.
• 1:22
  I was actually thinking we sound quite good considering this was in our first 50 episodes.
• 1:28
  Born to podcast.
• 1:30
  Obviously we were just editing the shit out of ourselves at that point because we couldn't drink a sentence together without stumbling.
• 1:36
  I remember Sophie's stomach rumbled in one of the early episodes.
• 1:40
  That one should make a comeback, I think that was a funny episode.
• 1:42
  Absolutely not so unprofessional.
• 1:44
  Now we swear and we think so.
• 1:46
  But this episode is all about why it's so important to not keep your money in the bank.
• 1:52
  For generations we have been taught to scrounge our money together save for a rainy day the words saving.
• 2:02
  We use so much the words investing are not really a part of Alvoca.
• 2:06
  Particularly as a woman I know that's probably not necessarily a gender thing.
• 2:10
  But this episode for me was such a penny drop moment of getting your money out of the bloody bank Sophie.
• 2:18
  I had my whole life savings, any money released my name in a bank account at this point when we recorded this episode.
• 2:26
  And I think the explanation of how inflation and what goes on in the environment around and how you think it's so safe there.
• 2:34
  It's really a not particularly clever way to have your money just sitting essentially just like being eaten away by things like inflation.
• 2:44
  It's safe. Yeah, but it's not growing.
• 2:46
  And because we're taught even as early as I can remember when you're doing chores it's like you make money and you either spend it or you save it.
• 2:54
  There's no investor. You're not taught those concepts so fair enough that we only ever think there's two options.
• 3:00
  Save or spend. But there's a big big third option.
• 3:04
  But yes, keeping money in the bank, particularly when inflation is high is honestly the worst thing.
• 3:10
  You are literally losing money day after day after day if you're not investing it.
• 3:15
  It's quite interesting because I remember once like honey, remember what the context was but you went into a banking app in front of me.
• 3:21
  And I remember seeing how little was in there and for a moment if she's poor.
• 3:26
  Yeah, honestly for a moment I felt quite proud. I was like I've got more money than Victoria.
• 3:32
  And then I realized that is the best thing to do is to have only really what you need in those everyday accounts.
• 3:38
  I had everything in that account and honestly it blows my mind and it seems so obvious now.
• 3:44
  It seems so obvious now but it's not obvious for a lot of people.
• 3:48
  So we wanted to bring this episode back. It's an archive episode. It's all about why you should not be keeping your money in the bank.
• 3:55
  And even if you've listened to this before, given what's happening at the moment economically, it's a really good reminder how much you need to be critically thinking about where you're leaving your money.
• 4:06
  You should be thinking what is the little list amount that I need to have in the bank and what can I invest in terms of the rest?
• 4:14
  Yeah. So you don't really need to listen to the episode.
• 4:17
  That is a punchline. But if you need a bit more convincing, here is one of our episodes from honestly three years ago.
• 4:29
  So today we are going to learn about why we always say invest for the long term.
• 4:35
  Do you know what's funny is that this is because constantly saying this to me and I reckon for about a year I've had invest for the long term.
• 4:43
  And I've just been like, God come up with some new material work that annoying friends. But now I get it.
• 4:50
  Yeah, I'm really starting to actually think and we actually had an event the other night and one of the questions was like, but what is long term?
• 4:59
  And so I think it's a really good starting point is to actually define what do we mean by long term and what do we mean by short term?
• 5:08
  Because I would have thought short terms like two or three months. I mean long term is like a year and a half but it's totally not as it.
• 5:14
  It's like a long term relationships like a couple years short term is a couple months and investing completely different.
• 5:20
  Right. So what would you say is like proper long term?
• 5:24
  So proper long term, like what's defined by the industry is anything over five years. But for me, I reckon 30 years is long term.
• 5:34
  I think retirement timeframe is long term.
• 5:37
  How do you live in the moment when you're thinking about 30 years every time I buy a coffee?
• 5:42
  No, no. I need to be so long term.
• 5:44
  So she years. I mean, wow.
• 5:46
  Okay. Well, in 30 years.
• 5:47
  I mean, 60.
• 5:48
  Yeah, roughly. Yeah. We'll be at near retirement or at retirement. And so for me, that is long term. Short term is anything before 10 years I reckon.
• 6:00
  But in the industry, short terms, anything before five years.
• 6:05
  Okay. But I guess it's not defining short and long term. It should be rephrased to invest for as long as you can.
• 6:15
  If that makes sense, the longer the better.
• 6:18
  And any no matter what age you are, because if you're 60, your long term isn't 30 years because you're sorry to say it.
• 6:27
  I mean, they might look to 90. Yeah, they might. Yeah, it's pretty bad.
• 6:30
  My granddad was 104 nearly.
• 6:32
  That's crazy. That's crazy. But it just means that your long term is probably going to be different to your parents long term, for example.
• 6:39
  So long term for my mum might be seven, eight years.
• 6:42
  Yes. For me, it's 30.
• 6:43
  Yes. So it's like the longer the better.
• 6:46
  So we should really be investing from day dot.
• 6:49
  Exactly. Exactly. That's why we say start yesterday.
• 6:52
  It can't make sense why you own a house in Greyland and I still wondering if I can buy Uber Eats.
• 6:59
  No, but I think it's that's it, isn't it? It's like even five years makes such a massive difference in the long term.
• 7:06
  Exactly.
• 7:07
  You've been investing now, what, for like properly investing?
• 7:10
  Probably investing probably for, I want to say like 10 years.
• 7:14
  It's amazing.
• 7:15
  Yeah. I mean, it's, I didn't have a lot of money at uni because I was spending it on other things.
• 7:21
  What were you spending on Victoria?
• 7:23
  Your typical student expenses.
• 7:25
  Some KGBs, vodka curses.
• 7:28
  Exactly.
• 7:30
  Snob lipstick, remember that horrible Mac lipstick that we used to wear?
• 7:34
  And I was like bright pink.
• 7:35
  Oh, yeah.
• 7:36
  Horrible. Yes.
• 7:37
  And it was expensive.
• 7:38
  It's like $4,000.
• 7:39
  Like a pastel lipstick.
• 7:40
  Like nobody looked good with that color shade lipstick.
• 7:42
  Yeah. And like goons.
• 7:45
  Oh my god.
• 7:46
  Yeah. Is that what they call?
• 7:47
  I remember I drank a goon once and I ran into a glass wall.
• 7:50
  Like I, I probably had like a half of a goon.
• 7:55
  I just remember things so excited and I ran towards some friends and just fully.
• 8:00
  Like it was so bad.
• 8:02
  I feel like there's something you would do sober as well.
• 8:05
  I had a migraine for like a week and a half.
• 8:07
  Oh, so painful.
• 8:09
  Geez.
• 8:10
  So anyway.
• 8:12
  Anyway, we got a bike ride.
• 8:14
  Yes.
• 8:15
  So yeah, I've probably been investing for about, about 10 years.
• 8:18
  You know, as soon as I started actually having a full time job and I was actually putting
• 8:22
  some money away for Kiwis Aver and for like dipping, you know, dipping my toe into certain
• 8:27
  stocks that I was interested in.
• 8:29
  So yeah, I've probably been investing.
• 8:31
  I've been investing for about 10 years.
• 8:32
  It's amazing.
• 8:33
  And you were learning because you would have been learning about investing it.
• 8:36
  You did.
• 8:37
  So what they would have been even before then.
• 8:39
  So by the time you started investing you had a pretty solid basis to what you were.
• 8:42
  Of not doing.
• 8:43
  Yeah.
• 8:44
  Yeah.
• 8:45
  But gosh, definitely made some mistakes.
• 8:47
  That's for sure.
• 8:48
  Have you?
• 8:49
  Actually, because I feel like you say that and I don't believe you.
• 8:51
  Well, you don't really go around being like, I lost money in this.
• 8:54
  I lost money.
• 8:55
  No, but he does.
• 8:56
  No, everyone only ever tells the good stories.
• 8:59
  It's like, I invested in Bitcoin and it's gone up 100%.
• 9:01
  Can you tell me one bad investment you made and you actually lost money on it?
• 9:06
  Yes.
• 9:07
  More than a thousand dollars, like actually lost money.
• 9:09
  Yes.
• 9:10
  So this was probably in my previous role.
• 9:12
  I feel bad naming the company because it was like, it was such a good company.
• 9:16
  Don't hire that.
• 9:17
  It's such a job.
• 9:18
  No, it's more like, I just don't want to name the company.
• 9:22
  Does it matter though?
• 9:23
  No, no.
• 9:24
  So you're working as a fund manager.
• 9:26
  Yes.
• 9:27
  Yeah.
• 9:28
  And I invested in a company and it was like a healthy.
• 9:30
  It was kind of like a tank, I guess.
• 9:32
  Yeah.
• 9:33
  Like a tank juice bar, but it was more like healthy food.
• 9:35
  And I was like, oh, this is like a healthy wellness trend.
• 9:37
  This is an instructional growth.
• 9:40
  Exactly.
• 9:41
  And then it was like, the founder was there and like he was driving the growth.
• 9:44
  They're rolling out all these stores.
• 9:45
  And I think that the stock just got a hit of itself and they had unrealistic targets
• 9:50
  of what they could achieve.
• 9:51
  And in hindsight, which is great.
• 9:54
  The targets that they were trying to achieve in terms of the stores they're rolling out
• 9:57
  was just opening like one store a week kind of thing, which was just unrealistic.
• 10:03
  But I just jumped on the bank.
• 10:05
  They had rose into glasses and just took what they said is gospel.
• 10:08
  And it was a huge learning curve.
• 10:10
  Did you invest quite a lot in that?
• 10:11
  Excuse the pun.
• 10:12
  Did you invest a lot?
• 10:14
  Yes.
• 10:15
  Like how much?
• 10:16
  It was part of a fund.
• 10:17
  So like 50 grand or more?
• 10:19
  Wow.
• 10:21
  So what happens in a staff meeting when you've lost say like hundreds of thousands of dollars?
• 10:26
  Yeah, it's part and parcel of the day job.
• 10:30
  You get them wrong.
• 10:31
  And now I've learnt, don't take what management say is gospel.
• 10:35
  You know, you have to do your own research and think logically, can they open that many stores?
• 10:39
  My boss didn't care.
• 10:41
  Well, he did.
• 10:42
  But it was more, it was more sit me down and say what have you learnt?
• 10:47
  And you know, we do say you learn most from your mistakes and you definitely do it when there's money behind it.
• 10:53
  100%.
• 10:54
  Do you feel one of those, like did you feel that loss even that wasn't your own personal money?
• 10:59
  I think it's more intense because it's not your money.
• 11:02
  So you have to answer to clients that you've lost money.
• 11:06
  But also that's why we run a fund.
• 11:08
  You've got 40, 50 companies in there.
• 11:10
  So yes, one blows up.
• 11:12
  But as long as the other 49 or 39 do well, then smooth sailing.
• 11:18
  Yeah, okay.
• 11:19
  Diversified.
• 11:20
  Diversified.
• 11:21
  Diversified, etc.
• 11:22
  I think we just diversified off track a bit.
• 11:24
  Yes, we've really did.
• 11:25
  So investing for the long term.
• 11:27
  So it's anything really plus like 10, 20, 30 years, ideally.
• 11:31
  Yes, the longer the better.
• 11:33
  And this all comes down to risk.
• 11:35
  Your favourite word, risk.
• 11:37
  I think I'm a bit of a baby when it comes to risk, to be honest.
• 11:40
  Like if everyone was like, let's jump off this cliff.
• 11:43
  I'd be like, is he for an else coming?
• 11:45
  I only know what everyone else does.
• 11:47
  Yeah.
• 11:48
  Yeah, well, we always say I'd be staying involved with risk and it does.
• 11:51
  And then risk is just the volatility of the asset.
• 11:54
  So the volatility of the shares or of the share price.
• 11:57
  I find that word a bit confusing.
• 11:59
  Volatility means what?
• 12:01
  The movement up and down.
• 12:02
  So cash, for example, very low risk.
• 12:04
  And it's not volatile.
• 12:05
  And it's not volatile.
• 12:06
  You don't look at your bank account and go, oh, gosh, it's up.
• 12:08
  Oh, gosh, it's down.
• 12:09
  Oh, you log in.
• 12:10
  And you've got $100 in there.
• 12:12
  Tomorrow you're going to log in.
• 12:13
  There's going to be $100 in there.
• 12:14
  So you know, it's kind of not volatile.
• 12:16
  So there's pretty much no movement in cash in the bank.
• 12:20
  So therefore there's no risk.
• 12:22
  Well, very low risk.
• 12:24
  Whereas she is.
• 12:25
  You look at them, they go up, they go down, they go up, they go down, they go down, they go down.
• 12:28
  So there's a lot of volatility, which means there's a lot of risk.
• 12:31
  Okay.
• 12:32
  Yeah, no it does.
• 12:33
  And then I guess you look at something like cryptocurrency.
• 12:35
  Oh, gosh.
• 12:36
  It's like up 25%.
• 12:37
  Down 25%.
• 12:38
  My flatmate actually opened his crypto wallet on his phone there that I'd never seen one before.
• 12:43
  And I was like, oh my goodness.
• 12:45
  It was, honestly, it felt like I was peeping into another world.
• 12:48
  I was just like, this is wild.
• 12:51
  It's fascinating though.
• 12:52
  And that is real volatile, right?
• 12:54
  Because he was saying that every day he goes in and the little red number at the bottom could be up 60% or down 60%.
• 13:00
  Like it's not consistent with anything.
• 13:02
  No.
• 13:03
  And that's why we say invest for the long term.
• 13:07
  Because so the advantage of long term investing is that the relationship between the risk of volatility and time
• 13:15
  means that over time that risk is lowered, that volatility is lowered.
• 13:21
  So if you spread out, it's spread out.
• 13:24
  So if you looked at a long term chart of like Australian market, the US market, the New Zealand market, they all go up into the right.
• 13:31
  The more you zoom out, so say you went five years, 10 years, 20 years, 30 years.
• 13:36
  30 years?
• 13:37
  It's an uphill climb.
• 13:38
  It's all uphill to the right.
• 13:40
  And that's why we say invest for the long term so that you have the best chance of getting that uphill to the right in your investment.
• 13:50
  Sorry, was I need to add something?
• 13:52
  No, sorry.
• 13:53
  I was just thinking, is that does it make sense?
• 13:55
  No, it doesn't.
• 13:56
  No, it does.
• 13:57
  Because I guess, I mean, if you're thinking in terms of an uphill steady climb, like maybe if you're looking short term, you see the volatility.
• 14:04
  But what you're saying is over a long period of time, it's almost stretched out.
• 14:09
  And as an overarching trend in every stock market, long term view, it's an uphill.
• 14:17
  Yes, and if you use these little blips, but because you've zoomed out so much, they're little blips.
• 14:23
  Whereas if you zoomed in, it could be down, it could be flat with a big correction in the middle.
• 14:29
  There's a lot more volatility or movement up and down when you zoom in.
• 14:34
  The reason that every stock market is going up in terms of a long term view, is that because the companies that are listed are generally more than not successful,
• 14:44
  and therefore the money that people are investing is growing these companies and therefore growing the value of the stocks and therefore returning to their...
• 14:51
  Yes, exactly.
• 14:52
  So all the market is...
• 14:53
  So when we talk about the US market or the Aussie market, we're talking about the main index there.
• 14:59
  The S&P 500 and the US, the ASX200 and Aussie and then New Zealand, it's the NZX50.
• 15:06
  So that is just a bunch of a whole lot of companies.
• 15:11
  So yes, you're right, it's all those companies that are growing their earnings.
• 15:16
  It's also the underlying economy, so we all know that we're not in recession at the moment or we're not in a period of a really long recession.
• 15:25
  There's economic growth, which is what we call GDP, which is gross domestic product, which is just the measurement.
• 15:32
  And that's growing sometimes around 2 to 3% each year.
• 15:35
  So you've got that underlying growth, you've got company growth on top of that.
• 15:39
  So over the long term, economies are growing in general.
• 15:43
  If they're all going backwards, gosh, we're being a diet situation.
• 15:47
  So it all comes down to more people on the planet, producing more goods, it's just more activity, more growth, and yes, that feels that as well as inflation.
• 15:58
  So when prices are steadily rising, then companies are generating revenue, they're generating profit, and that is reflected in their stock price.
• 16:08
  It's a part of parcel of the world growing, really.
• 16:12
  That's why we say nobody knows what's going to happen in the short term, because there's so many drivers in the market, like you just said, company earnings, which is what we call the micro side of the market.
• 16:23
  And there's macro side of the market, which is more of the economy, interest rates, inflation, all that stuff going on.
• 16:30
  But if you zoom out, take a long-term view, markets will go up, so that's why we're saying this for the long term.
• 16:35
  So really, it's a no-brainer investing in stocks, because I mean, yes, of course, there might be a few bad ones along the way.
• 16:41
  But overall, it's increasing in value.
• 16:44
  So as much as we're all sitting here like newbies like me being like, oh, this is so scary.
• 16:50
  Actually, the trend in general is a really positive one.
• 16:54
  Wouldn't you say something like the stock market has gone up even more than the property market has in New Zealand?
• 17:00
  Yes.
• 17:02
  The NZX50 has gone up about over 10% per year over the last nearly 20 years.
• 17:09
  And what's the property market?
• 17:10
  And the property market's like 8% in Auckland.
• 17:12
  That's just Auckland, but that's because you're taking on a bit more risk.
• 17:15
  There's less risk investing in the property market, because there's less volatility.
• 17:19
  And New Zealand's got a property market of its own.
• 17:22
  But here is a stat for you.
• 17:25
  Oh, I love a good stat.
• 17:27
  So the NZX, the New Zealand stock market, over the last 20 years, there's only been five years where the market ended down.
• 17:37
  So 15 out of 20 years of the last 20 years, the New Zealand market has finished up.
• 17:45
  And up can be like 20%, 30%, it could be 2%.
• 17:49
  So all those people out there that are like, oh, but I'm going to wait for a market pull back,
• 17:54
  I'm going to wait for a correction before I invest my money.
• 17:57
  You could be waiting five years even longer.
• 17:59
  And you're missing out on all those gains while you're waiting for what might not actually happen.
• 18:05
  It's like you say, it's a no-brainer.
• 18:07
  I'd rather invest now, get those gains for five years.
• 18:10
  Yes, maybe lose a little bit if there is a correction and then continue on those gains.
• 18:14
  Yeah, that's why.
• 18:15
  And the same when Aussie, so in Australia, same period of the last 20 years, there's only been four years where it's ended negative.
• 18:21
  That's incredible.
• 18:23
  So this is why we say, invest for the long term, if you put your money in for the 20 years,
• 18:27
  you would have had four corrections, but it's meaning less than the scheme of things, really.
• 18:31
  Yeah.
• 18:32
  It's like if you look at, you know, the boyfriends you've had across your life,
• 18:36
  you've probably had a few plumkers in there.
• 18:40
  But it doesn't matter because there's a few goodies.
• 18:43
  But that's the thing, it's like you've got to kiss a few frogs, do you know?
• 18:46
  It's always bad, yeah.
• 18:48
  That's exactly what I was talking about.
• 18:50
  I was struggling to find my analogy.
• 18:53
  But do you know what's bad as well is that I've actually still got money in Australia
• 18:58
  and I have been thinking, I'm actually not going to bring that over through transfer wise
• 19:02
  because, you know, when I first moved over to Australia, the dollar was so much stronger
• 19:07
  and I've been that classic.
• 19:08
  It's been years.
• 19:09
  I remember saying to you honestly, probably four years ago,
• 19:12
  I've got my money over here and I don't know if I should bring it.
• 19:15
  How much do you know what it is?
• 19:17
  Well, I mean, there's only ten grand, but for me that's a lot.
• 19:20
  Yeah, and it's just in the bank.
• 19:22
  So it's probably earning maybe one percent plus you've probably got bank fees.
• 19:27
  Awesome.
• 19:28
  No, I do, I get heaps of bank fees.
• 19:30
  It keeps saying like minus $13 bank stuff.
• 19:32
  I'm like, oh, dammit.
• 19:34
  So you're probably getting nothing?
• 19:36
  Oh, you're probably getting that negative three.
• 19:39
  Maybe I'm going honestly going backwards because there are some weird deductions that I can see.
• 19:44
  It's like so final.
• 19:49
  So, okay, let's work backwards.
• 19:51
  If I was to ask you how much money do you want at retirement?
• 19:57
  I mean, I don't know.
• 19:59
  Like a couple hundred, a couple hundred grand?
• 20:01
  Or is that not enough?
• 20:02
  That's to maybe three hundred.
• 20:03
  Three hundred?
• 20:04
  Yeah, okay, three.
• 20:05
  I want to be able to buy some base trees and some yum treats.
• 20:09
  So it's three hundred grand and you've got ten thousand in your bank.
• 20:13
  And I was at the moment.
• 20:16
  Are you laughing at my ten grand?
• 20:18
  No, I'm reading that.
• 20:19
  I'm reading that.
• 20:20
  I'm reading that.
• 20:21
  So you'd need at least, you need to be getting about ten percent per year for the next thirty years.
• 20:26
  And you're getting probably negative two.
• 20:29
  So I need to up myself by thirteen percent.
• 20:31
  But how amazing that you could just, if you just sat down for half an hour and an hour
• 20:36
  and actually put some time in and change and put into a fund.
• 20:39
  I mean, I'm ignoring currency in all that.
• 20:41
  So you put into funding of the generating ten percent.
• 20:43
  You could literally sit back and relax and know that you've got.
• 20:46
  You can buy my pastries when I may.
• 20:48
  You've got, yeah, you'll be able to buy pastries.
• 20:50
  It seems like a no-brainer.
• 20:51
  Yes, okay, but I'm sorry.
• 20:52
  It's very hard on the curves stuff, okay?
• 20:55
  But I have no spare time.
• 20:56
  Honestly, the number of people like you in your situation that go,
• 20:59
  oh my gosh, it's amazing.
• 21:00
  And they genuinely want to do it.
• 21:03
  And then they leave arrogant or they stop listening to the podcast.
• 21:07
  And then they forget about it.
• 21:09
  And then it's month's time and they swear they've done it.
• 21:12
  It's all a wheelie hood.
• 21:13
  Yeah, this is exact.
• 21:14
  And you're talking to the audience.
• 21:16
  I want to rephrase that though.
• 21:17
  If I was to say to you, so I'll give you $300,000 for an hour's work.
• 21:23
  Oh my gosh.
• 21:24
  Would you take it?
• 21:25
  Well, yes.
• 21:26
  I would make some time and I'm very busy schedule.
• 21:28
  I think ever I would say yes.
• 21:30
  Gosh.
• 21:32
  And that's kind of, I guess, the mentality of how.
• 21:35
  That's a great way to rephrase.
• 21:37
  Yeah.
• 21:38
  And I think that's what everyone should think.
• 21:40
  Or just spending money on looking after your finances.
• 21:43
  Whether it be your tax return and you're going to get some tax back.
• 21:46
  Yeah.
• 21:47
  And you're like, oh god, I'm going to put that up.
• 21:49
  It's a bloody boring.
• 21:50
  But actually, so worth your time.
• 21:52
  Yes, definitely.
• 21:53
  Do you know, recently, I've had this huge urge.
• 21:56
  I don't know how it's taking me so long.
• 21:58
  But within the last probably week, week and a half, I've all of a sudden felt this real
• 22:04
  will to want to start investing properly.
• 22:07
  Yeah.
• 22:08
  I don't know why it's taking me so long.
• 22:09
  But I've just got to a point recently where I'm like, oh no, I actually, I've got this.
• 22:14
  You know, if I actually put some time and effort and energy in, I can totally make this happen for myself.
• 22:20
  I just actually have to do that.
• 22:22
  I think I've been sort of sitting back and feeling a bit still overwhelmed, still scared,
• 22:27
  and still just like not ready.
• 22:29
  Well, you're learning.
• 22:30
  And I think maybe you've probably got to a level now where you are feeling kind of understanding where I'm like,
• 22:36
  oh, okay.
• 22:37
  Which is great.
• 22:38
  Yeah.
• 22:39
  I don't know.
• 22:40
  Maybe it's just the idea that there is going to be ups and downs and it's not going to be perfect sailing.
• 22:44
  But that overall, even just hearing what you were saying about the markets generally,
• 22:49
  other than four or five years out of 20 finishing up.
• 22:52
  It's like an o-brainer.
• 22:54
  It's stepping the door, you know, like just open the door, dip a toe in.
• 22:58
  And it's good to remember those things because you might start.
• 23:01
  And then the market market might be down 20% to say.
• 23:04
  But then it's just thinking, no, this is probably one out of very few years that this happens.
• 23:10
  It's kind of like, I remember swimming in Bondo.
• 23:13
  And I was like, oh, and I was like, it's going to sell Bondo today.
• 23:16
  And I'm like, there's sharks in here, there's sharks in here.
• 23:19
  You start thinking about the actual stats around how many people have been killed by shark attacks,
• 23:24
  how many people some of the ocean and the likelihood that's going to happen to you.
• 23:27
  And so you start thinking, when you invest, if you invest it and then you have your first year's really bad,
• 23:32
  it's thinking, okay, we'll look at the stats over the long term.
• 23:36
  Markets have gone up every year except four or five depending on Australia and New Zealand wherever you're investing.
• 23:42
  So it's just taking those stats and remembering them and not getting emotional about the fact that you may have lost some money.
• 23:50
  I must say, I have thought about the shark attacks too.
• 23:54
  And I felt like if there's anyone to get attacked by a shark, it would probably be me.
• 23:58
  As long as I guess I'm faster than you.
• 24:01
  I actually just started surfing recently and I purposefully going to get not a black wet soap.
• 24:06
  You'll get me one of those stripy ones and look like a zebra.
• 24:09
  So I need to make it very clear to sharks that I am not their food.
• 24:14
  Oh gosh.
• 24:15
  Okay, so investing for the long term generally means that you are going to be able to weather the volatility of the market.
• 24:23
  In those years, they're a little bit shit, the shark years, because in the long term, you're going to be up regardless.
• 24:29
  Yes.
• 24:30
  I was actually recently watching Wolf of Wall Street just to get some real motivation for my investing career.
• 24:37
  Firstly, shocked at the behaviour of all men during that time.
• 24:42
  Oh, I got it.
• 24:43
  It was disgusting.
• 24:44
  And to think that the market was actually like that.
• 24:46
  Was it really?
• 24:47
  So do people talk about the glory days and investing and it was like that?
• 24:50
  I personally wouldn't say they glory days, but they're like...
• 24:52
  But the guys rage his days, yeah.
• 24:54
  Yeah, like snorting cocaine off people's bums and stuff.
• 24:57
  Or, yeah, it was generally the woman, right?
• 25:01
  Yeah.
• 25:02
  I think that's because there was so few women in the industry then.
• 25:05
  I mean, there's a few more now, but there's still very little.
• 25:08
  That behaviour was okay.
• 25:10
  And treating your clients like terribly was okay.
• 25:14
  And just getting as much money.
• 25:16
  And there's a lot more regulation now in place.
• 25:19
  Thank goodness.
• 25:20
  But yeah, some of the scenes of that and also what they did to clients is just...
• 25:25
  So Matthew McConnell and Big fan.
• 25:28
  Something about the way he talks is so hot.
• 25:31
  But he did say something that I thought, oh my god,
• 25:34
  this is how I feel about the stock market.
• 25:36
  And I wanted to fight you because I feel like it definitely encompasses
• 25:40
  how probably a lot of us feel about you and people in the industry
• 25:45
  that tell us all of those information.
• 25:47
  So I'm just going to play this, but just give me this again.
• 25:50
  I'll try to get my technicals.
• 25:52
  Number one rule of Wall Street.
• 25:55
  Nobody.
• 25:56
  Okay, if you're Warren Buffett or if you're Jimmy Buffett,
• 25:59
  nobody knows if the stock is going to go up,
• 26:02
  down side ways are in fucking circles.
• 26:04
  At least of all stock brokers.
• 26:06
  It's all the Fugazi.
• 26:07
  You know what Fugazi is?
• 26:08
  Well, Fugazi.
• 26:09
  It's fake.
• 26:10
  Yeah, Fugazi Fugazi.
• 26:11
  It's a Wazi.
• 26:12
  It's a Wazi.
• 26:13
  It's a fairy dust.
• 26:14
  It doesn't exist.
• 26:15
  It's never landed.
• 26:16
  It is no matter.
• 26:17
  It's not on the elemental chart.
• 26:19
  It's not fucking real.
• 26:21
  Right?
• 26:22
  Right.
• 26:23
  Now.
• 26:24
  Oh, gosh.
• 26:25
  I have a bone to make with you.
• 26:27
  It's all fake.
• 26:28
  It's all fake.
• 26:29
  Yeah.
• 26:30
  I'm kidding.
• 26:31
  I guess the thing he's missing there,
• 26:34
  or the caveat that's missing is he's more short-term focused.
• 26:37
  And I agree with him.
• 26:39
  Nobody knows what's going to.
• 26:40
  I'm not that it's fake.
• 26:41
  But I agree with him in that.
• 26:42
  Nobody knows what's going to do short-term.
• 26:44
  If it's going to go up, it's going to go down, it's going to in circles.
• 26:47
  Right.
• 26:48
  And people that tell you that they do know what's going to happen, don't.
• 26:51
  I don't know what's going to happen tomorrow next week, next month.
• 26:53
  But I do know over the long term that markets tend to go up.
• 26:57
  So actually, it's kind of sort of true.
• 26:59
  Yes.
• 27:00
  Yes.
• 27:01
  To a degree.
• 27:02
  Yeah.
• 27:03
  Okay.
• 27:04
  I guess that's a whole point of this episode though, right?
• 27:06
  Yes.
• 27:07
  Yes.
• 27:08
  In the short term, we might not know what's happening.
• 27:09
  In fact, we definitely don't know what's happening.
• 27:11
  Exactly.
• 27:12
  There's going to be some shark ears.
• 27:13
  Yes.
• 27:14
  You know, you might get a little bite here and there.
• 27:17
  But it's going to heal, and you're going to.
• 27:19
  And you're going to keep swimming.
• 27:20
  We're in the right direction.
• 27:21
  Exactly.
• 27:22
  You're going to keep swimming up to the right.
• 27:24
  Yeah.
• 27:25
  Okay.
• 27:27
  Okay.
• 27:28
  You always tell me to edit out your singing.
• 27:29
  So don't do all the recording.
• 27:31
  Okay.
• 27:32
  So invest for the long term.
• 27:34
  Yes.
• 27:35
  As long as you can, depending on your situation.
• 27:37
  Invest for as long as you can is probably a bit of slogan.
• 27:40
  Yeah.
• 27:41
  It actually really is, isn't it?
• 27:42
  For me, I couldn't invest for 30 years.
• 27:44
  Yes.
• 27:45
  For my mum.
• 27:46
  She might not be able to.
• 27:47
  Exactly.
• 27:48
  I hope so.
• 27:49
  Same.
• 27:50
  But you never know.
• 27:51
  Love her.
• 27:52
  Invest for the long term.
• 27:53
  It's hard when you're thinking about people our age who might be wanting to say for a house
• 27:57
  or that money you can't really just put away for ever in all 30 years.
• 28:03
  I'm never going to need that because that's also unrealistic.
• 28:06
  That's true.
• 28:07
  And I think maybe there's an approach to investing in, say, three buckets or two buckets.
• 28:12
  And it's saying, okay, this is going to be my shorter term investment.
• 28:16
  Maybe I'll take a little bit less risk because I want that investment in five years.
• 28:21
  To buy a house, for example, to pay for a wedding, to buy a new car, whatever.
• 28:25
  But then for the other part or the other bucket, I'm going to do a much more longer term
• 28:32
  view and take a lot more risk because I'm, you know, so it's kind of splitting it up or
• 28:37
  or putting it in buckets for different goals is maybe a better way to look at it.
• 28:40
  Because yes, there are short, shorter term times when you need our money or
• 28:45
  or a shorter term investment goals.
• 28:47
  And that's fine.
• 28:49
  But, yeah, maybe split it into buckets if you know what those shorter term and longer term goals are.
• 28:54
  It would be a really great short episode on that, actually.
• 28:57
  Yeah.
• 28:58
  Like how to figure out what your investing goal is, what you're wanting to achieve,
• 29:02
  and then therefore what kind of investments should you be looking for?
• 29:06
  How long should that be in there for?
• 29:08
  Because I wouldn't have a clue really how to bucket my investments.
• 29:12
  Yes.
• 29:13
  I'd love to do that.
• 29:14
  Maybe we could look at doing that this season.
• 29:15
  Yeah, that's a good idea.
• 29:17
  Bucket is investing.
• 29:18
  I feel like every industry talks about buckets during marketing.
• 29:21
  They're like, all the markets in buckets.
• 29:23
  Yeah.
• 29:24
  Okay.
• 29:25
  I feel like this has been a very good episode.
• 29:26
  However, I'm aware of the fact that we have been potentially rambling.
• 29:29
  So, should we just do a quick summary on the key takeaways for everyone for this episode?
• 29:34
  Yes.
• 29:35
  Okay.
• 29:36
  So, first one I would say is invest for the long term or invest for as long as you can.
• 29:41
  And your long term and my long term might be different.
• 29:44
  The second point would be that remember the stats of the long term markets tend to go up to the right.
• 29:50
  And the third one is Matthew McConaughey was only half right.
• 29:53
  Oh, I'd love that.
• 29:54
  I'm so glad a point that I bought the table made into the summary.
• 29:58
  Thank you so much for listening to Raisin the Curve.
• 30:00
  These conversations are designed to teach you everything you need to know to be better with your money,
• 30:04
  from saving, to investing, to talking with your friends about your salaries or that stuff.
• 30:08
  And if you like what you heard, we would love if you could please hit subscribe
• 30:11
  wherever you're listening and leave a comment.
• 30:13
  Let us know what you thought about the episode.
• 30:15
  And it only takes one second and it would really make our week a month or a year.
• 30:19
  Yeah.
• 30:20
  Yeah.
• 30:21
  So, please do it.
• 30:22
  Okay.
• 30:23
  Love you.
• 30:24
  Bye.
• 30:25
  Okay, quickly, the Curve was created to empower and educate you about investing,
• 30:27
  but we are not financial advisors.
• 30:29
  Our platform exists for educational purposes only,
• 30:32
  and it doesn't provide personalized investing advice for your individual needs
• 30:35
  and should not be relied upon to make an investment or financial decision.
• 30:39
  And always remember to do your own research before making any investment or financial decision.
• 30:43
  We're here for any knowledge and support you need,
• 30:45
  but the final call is always yours.
• 30:47
  And thanks for being here.
• 30:49
  You got this.
• 30:50
  Yeah, we know you got this.