00:00.69 archpodnet Hello and welcome back to the crmarcheology podcast episode 253 and for this segment we're going to talk about the crazy world of the stock market. So I thought I could just. Talk for a bit about my experiences in the stock market my experiences in investing in it and then we can kind of go on from there so very long story short. What I would say for everyone is don't be afraid of the stock market I actually think it's one of the. Best things you can get into very early on I I know that it's intrinsically volatile I know that you can lose all your money if you do something incredibly wrong which I've done and I'll talk about as we go. But even though I've had. Some horrendous car crashes in the stock market. Overall I've made a ton like I've met and and by a ton I mean the percentage that I've gotten back in the stock market is way better than I've done on any of these other things. Roth Ira for a one k any of this and. As I go through this I want everyone to think about themselves and be like hey you could do this too right? and the key the key to dealing with the stock market is being what I would call a drip investor that just means like hey every month 01:32.10 archpodnet I'll put a hundred bucks in this or like every month I'll put fifty bucks in this or you're starting out every month I'll put thirty bucks in this you know and by in this I mean an online stock trading account like for me I use e trade. Um, there's a bunch of others out there I used to have a different one and they got bought by E Trade but what's great about it is in my experience at least is it's all up to you so when you lose. It's all your fault which is oddly to me all right because I've ah had it the other way around where I've had financial advisers lose for me and that to me is a much worse feeling because you have no control and you just watch them do something really stupid with your money. On the flip side when you do something right? It's all you and that can feel really good and I will say as I go through this that it's also just really fun. It's fun to play the stock market as long as you're a long term investor. You're not trying to be some sort of wall street tycoon where you're like. Buying and selling every 2 days you know where you're trying to make money on a stock in a 24 hour period like you don't want to do any of that stuff. This is long term investing ultimately for ah retirement and heather I see you have a question. 03:02.21 Heather But yeah, so so I was wondering like would you say that it makes sense to you know like when I going to when I if I go to Vegas right? and I decide I want to go and play I say I'm not a big gambler at all I'm not a gambler at all. Yeah I just go for the fun of it. 03:14.74 archpodnet Yeah, me, neither no. Ah. 03:21.61 Heather Right? So in the beginning I just I'll say okay I'm gonna I'll play $50 and however, that takes however long that takes me I'm gonna use I'm going to put that $50 with the of course I don't want to lose it. But with the idea that um, that's as much as I'm able to lose if I lose it. So. 03:32.50 archpodnet Right. Right? right. 03:40.88 Heather Um, thinking like in the beginning that's that's maybe the way you start, especially if you don't have a whole lot to play with and then um, then as you start making money you put a would it would it make sense that you put a percentage of what you just made into maybe something That's ah, a regular earner. 03:44.69 archpodnet Absolutely. 04:00.50 Heather And then have a percentage of your pot into stuff. That's a little bit more risky and then um is that how you look at it or is a different way. Okay. 04:12.20 archpodnet Um, it's It's a little different than that. But I'm glad you brought up the idea of Vegas because I do want everyone to think as we talk about stocks that there is a chance of just losing it all now as you but as you move forward What you what you're going to have is a portfolio. 04:24.23 Heather Ah. 04:29.58 archpodnet And I'm sure you've heard that term a bunch times. Oh your portfolio. How's your stock portfolio. Yeah right? And and really what you find behind the scenes is there's financial advisors behind the roth iris and the behind the 400 one k's investing your money you know doing this but instead why not just go straight to the stock market and do it for yourself. 04:30.43 Heather Yeah, you have that with a for a 1 k your 4 1 k has a portfolio. Yeah. 04:49.27 archpodnet Because what I've found is ah cn archeologists out there. You are easily as smart and as capable as the financial advisers out there. So. It's nice to to have a percentage to to play the stock market now what I would do. Luckily. It's not as severe as Las Vegas it's not like the house always wins with this It's you want to go slowly the key is you're you're saving for retirement. You're not you're not trying to make 10 percent in a month or something so by portfolio I mean you start. You find maybe like ten stocks. They're kind of classic stocks and that are that diversify. That's another term you hear all the time by that it means you get some stuff in technology. You get some stuff in like the medical field. 05:33.15 Heather Um, yeah. 05:38.74 archpodnet You get some stuff in what I like to call americana you know Ford Motors or general electric right? And you you kind of invest in these more classical things. You don't start out by investing in the like fly by night solar panel ponzi scheme that you're going to. 05:41.47 Heather I. 05:57.31 Heather Bright. 05:57.85 archpodnet Lose Tons on right? You don't you don't put a bunch of money like the the wrong way to do this would be like you have $2000 you put $2000 in 1 stock right? That would be the worst way to go you want to divvy it out i'ma put a hundred here I'm a put hundred and fifty here right? and and so you. 06:08.70 Heather Right? right. 06:16.95 archpodnet You Want to think of it as like this creation of this portfolio that is in different areas of the financial sector right? and and you do that over time. So back to your question as you do that? You don't you don't then need to take money out and put it somewhere Else. You are just growing different stocks. And then you have it So when you make money it just reinvests into the original stock and that's that's it. It's ok. 06:41.56 Heather Right? Oh I was thinking? Yeah um I probably didn't communicate what I was thinking like so you have um, you have that pot that you're doing exactly what you're just talking about. But if you want to be looking at something that's a little more risky. 06:54.70 archpodnet Yeah, yeah. 06:56.46 Heather You only play with a certain amount you had that same mindset of going to vegas and saying okay so you start off with 2000 and you're you're being a little ah know just smarter about it or honestly smarter. But you know more cautious about it. 07:06.29 archpodnet Um. 07:08.37 archpodnet Yeah, yeah. Right. 07:14.60 Heather With your investing and then let's say your pot is growing and you say okay I want to I want to play around a little bit so but you give yourself another limit just like you had it when you had nothing you say I just want to put in I want to play with this I'm going to put $200 towards it but you don't touch the rest. 07:26.74 archpodnet Um, yes. 07:30.33 archpodnet Yeah, yes, you do and you again. It's just I hope I'm being clear. It's this idea of drip investing that every month you just do a little more every month you do a little more and you can You can go for more edgy stocks if you feel like it or not. 07:33.13 Heather You'll let the rest of it work the way it's been working. 07:43.20 Heather Um, right. 07:48.57 archpodnet You can just stay with the classic stuff because that will make a nice return a thousand times better than your stupid savings account. You know, um it will keep track with inflation more or less. You know that's a it's a it's a to me. It's a it's a great way to go and. 07:54.25 Heather Right. 08:05.38 archpodnet Let's say you have $2000 to spend I wouldn't even put it all in the same month I would split it all up and I I'd put in like two hundred a month over the next ten months you know because the stock market itself is going to fluctuate another thing that people hear about is like mutual funds you'll hear oh yes, mutual funds. 08:07.98 Heather Right. Bright. 08:23.40 archpodnet I Think Mutual funds are in general A really bad idea because again all you're really doing is you're giving your money to someone else who is who has a quote unquote mutual fund which is really just a bunch of stocks. It's like a set bunch of stocks. It's like no just buy your own specific stocks. 08:23.86 Heather The ah. 08:36.34 Heather Right. 08:41.62 archpodnet Like be the captain ah of your own ship on this and it'll just do better you cut out the middleman. Um I just I recommend going old school on something like Etrade and just buying stocks that sound good to you do a little research you know, um, and. 08:57.00 Heather Brain I think I I've seen people get in trouble I mean my knowledge of stocks is very limited I mean you're a lot more. It's limited to basically me watching what's going on with the 4 or one k from the side. Um. 08:59.00 archpodnet Just start learning. 09:13.12 archpodnet Um, ah yeah. 09:14.47 Heather So I know a little bit ah and you do just so for those that haven't had a 401 k you have some choices and and how your 401 k is invested so you know that that is somewhere. Maybe that's something you start with kind of getting your feet with that although I do think it would be smart to to do it right away just like. 09:27.35 archpodnet Um. 09:30.77 archpodnet Yeah. 09:31.80 Heather You're saying and I mean it's I'm feeling I'm fifty years old I've never done it. So like I'm saying okay, maybe this next year that's something I'm going to do is I'm going to you know, look at at that and I think the 1 thing that sometimes I think that people get especially nowadays because things are getting these. You know these quick. 09:38.80 archpodnet Totally. 09:50.54 Heather Quick ah ah, get quick rich schemes right? They've that's not new to the 2020 s right I mean that's been around for thousands of years there's always a get quick ah get rich quick scheme right? So don't. 09:52.41 archpodnet Yeah, yeah, you don't want that right. 10:05.55 archpodnet Ah, there sure is. 10:08.19 Heather Like trade the your um insecurity and lack of knowledge with just going for that shiny ball right? you you have to do your homework So it's better to like I know for my personality I'll just admit it like I'm somebody who. 10:20.41 archpodnet Yep. 10:27.20 Heather Kind of wants that like if I'm gonna lose weight I'm I'm gonna look for like the the fad diet right? So I'm not that steady be careful with what you eat although you know just and and just lose it slowly over time but it stays off I'm kind of somebody who goes for that like okay, let's. 10:35.83 archpodnet Um, right? ah. 10:45.81 archpodnet Um, right. 10:46.36 Heather I don't have time for that. Let's just get something done quickly and I'm not and I'm not afraid of that. Well yet, you just have to be careful because it's a laziness in ah in a way right? It's you have to do your homework. 10:55.40 archpodnet Well, it's it's It's also maybe a lack of patience. You know right. 11:00.96 Heather Yeah, oh yeah, for sure. Yeah, it is It is or it's insecurity because you're like you know what this stock I'll never I'll never understand stocks right? and so I'm just gonna like it's just a crapshoot Anyway, it's just a lottery anyway like these things that go through your head I'm just going to go. 11:12.36 archpodnet Ah. 11:16.72 archpodnet Right. 11:20.26 Heather And hey you you hear these stories right of people making millions and millions of dollars in the stock market and you hear why do you hear those stories because they're unique because they don't happen very often. But it's those people that do this steadily their entire life. 11:22.21 archpodnet Yeah, yeah. 11:30.20 archpodnet Of course. Yeah. 11:38.49 Heather That are in really good shape at the end of their you know when they're ready to retire those people that just put in and just consistently put it in like you are those are the ones that are going to be set at the end. So yeah. 11:39.40 archpodnet Right. 11:44.85 archpodnet Yeah, that's what I'm hoping for you know and that's again, it's the only one I have any real control over. It's like the 4 0 three b thing in my world I'm like whatever they kind of do whatever it seems generally all right, but the stock market I have control you know I can. 11:54.90 Heather Yeah, yeah. 12:01.58 Heather Right. 12:04.18 archpodnet I can learn I can do it all I'm even part of a stock investing club on my campus which is great because it's like hey we have like the economics professor as part like this is good. You know So I really recommend that too because sometimes you know locally your friends or whatever sometimes people do a little investing club thing and that could be cool too where you just share like stock. 12:13.87 Heather Um, oh ah, that's a good idea. 12:21.58 Heather Right. 12:23.80 archpodnet You know tips. But um, yeah, just to give people an idea of some of the highs and lows early on when I was in my twenty s I got like $4000 from my grandma after she died right? There was like $4000 that I got and I'm like I'm going to invest this. And it was around like 2000 right before the technology bubble burst way back in like 99 or 2000 and so I gave it to somebody a financial advisor who put it in a mutual fund a technology mutual fund and he made my $4000 into about $1600 overnight. 12:42.68 Heather Oh. 12:57.29 Heather Oh now she'll a. 13:00.41 archpodnet So I lost about 60% and yeah and so and like I sold it finally like four years later or something and it was up to like eighteen hundred bucks like it was I just got reamed and so that was one of my big failures I also bought. 13:10.38 Heather Ah, wow. 13:17.67 archpodnet A is doing my own. It was a learning experience though in terms of the I'm like oh mutual funds. Oh financial advisors be a little wary. Um, but also just doing my own stock I bought a chinese water stock like because I was like oh water for the future. You're going to need water and it ended up being like a like a. Fake fly by night corporation and I made I made $200 into $0 um, but it it was a small you know it was I lost two hundred bucks but yes yeah and these are my worst. 13:36.72 Heather Stu. Yeah. Okay I have a story just the people know that it's okay, like these things you're going to make these mistakes right? Yeah I had my mom got into buying money different kinds of money that was really low right? That was valued low with the idea that it's going to. 13:55.88 archpodnet You know. 13:59.46 archpodnet Oh yeah, right. 14:06.31 Heather Someday all of a sudden pop and then you just exchange it for us dollars and make a lot of money and so you know it wasn't a ton of money but I spent like a thousand dollars on iraqi dinar. 14:09.85 archpodnet Um, yeah. 14:21.93 archpodnet A But right? yeah. 14:23.68 Heather And I still have it and it's really fun to look at it like sometimes I throw it on my bed and just lay in it. No I'm kidding but um and these the dinar is like has like so many zeros on them and they're worth like a dollar for $10 or something. But. 14:36.90 archpodnet But yes exact. Yes. 14:40.78 Heather Anyway, so you know you're going to make mistakes you're young and you know it looks like the thing is scams will always use the current political situation. The current volatile International political. Um, ah. 14:54.20 archpodnet Yeah. 14:59.51 Heather Situation to get you and um and so you just you just have to be savvy and you know there are some get rich quick schemes out there that do pay off but very a very small percentage so it's better just to go. You know the the steady route and and. 15:00.80 archpodnet Right. 15:15.00 archpodnet Um, yeah. 15:18.74 Heather Look at it long term and it will pay off in the end don't be don't like don't be overwhelmed like I know I've been that way and I just put my head in the sand for a while and I wish I hadn't but I'm on the right track now. So. 15:20.34 archpodnet Um, yep. 15:29.11 archpodnet Yeah, definitely. 15:36.10 Heather You know and don't even the little smallest amount is is worth it at this point and be smart. Yeah oh my gosh. Yeah and I mean I just think like unfortunately like we were saying it. 15:41.42 archpodnet Totally especially when especially when you're young, you know thirty bucks a month. Whatever put it in a yeah, um. 15:52.83 archpodnet Yeah. 15:53.15 Heather People are not taught this in high school. They're not taught ah in college and unfortunately I think we're going to have a lot of people that are going to end up at the end of their career that have that that we're not taught these like these like staple ideas in in life to make sure that you're being taken care of at the end. 16:09.80 archpodnet Right. 16:11.69 Heather I mean it is this was like everybody used to do these things fifty years ago and now ah you hear you talk to a lot of people. They're not doing it at all like they're not even looking forward to how they're going to be able to take care of themselves in retirement. 16:16.55 archpodnet Um, yeah. 16:20.63 archpodnet Right. 16:27.89 archpodnet I've seen that backwards and forwards and it's It's really unfortunate, um to although to end on a high note I'll talk about some of my my highs in the stock market. Some of my windfalls. Um. 16:37.71 Heather Yeah I'm interested. 16:42.31 archpodnet Around the time where I lost a bunch of money on the with the mutual fund guy I put about a hundred and fifty bucks into Apple stock in like 2001 yes so it's I I think that alone is now worth like $8000 or something like that. So. 16:50.43 Heather Oh Oh Wow! Oh wow. Yeah. 17:01.34 archpodnet Obviously I can't retire on that but you can see where I lost like thirteen hundred bucks and or twenty three hundred bucks in and afternoon or something over time I also made like 8 grand out of nothing. Um, that's probably my biggest. 17:05.36 Heather No yep, yep. 17:15.65 archpodnet Hi I also bought Chipotle like four years ago or so when they had like ah they had an outbreak of people getting sick not to all always buy stock in those because they always come back almost every time so I bought Chipotle when it tanked and I like quadrupled my money. So. 17:20.24 Heather Yes, equal I yeah. 17:30.15 Heather Um, wow. 17:33.54 archpodnet It wasn't huge like I I bought it for like three hundred bucks and it's worth like thirteen hundred bucks now or something. But so realize I just want to bring those up you know because I have winners as well with the losers and anyone who gets into this, you'll see that as well and it's okay, you know because long term. It's worth it for you to be that kind of drip investor. And I think with that. 18:02.15 Heather We're at 18 um see me well I just Chris cut out all this back just empty to space please. But um I I just I know I've said it before. 18:10.22 archpodnet Um, this empty void. 18:18.00 Heather But I can't just coming from somebody who started being more conscious um with my financial situation later in life I can't say enough please please please do this now and don't think that you're out of the market with it. Like even the smallest amount like Andrew said it is better than nothing at all and you know I'm on. Um I've been divorced once and so the four 1 k like also you know some of you that might be a decision maker and where you're going to work like really start asking those questions. And just ask the art is the is this four one is there a 4 one k or I mean you don't need to do a 4 1 k but you know the ira these are things that you can do even though you're paycheck to paycheck like think think about it. There's there are ways that you can cut back I was just talking to somebody on my team that. Um, we're talking about how can we um, save money. Overall there's little things that you do that you don't have to take your joy out of your life to save money but there are areas that especially right now I know I'm so busy that there's some things that I do that are not smart financially and just cutting. Cutting back on those things or being smarter in those ways don't in fact, don't affect my quality of life at all and add more to my ability to save money than just throwing away money and giving it to other people because that's what you do when you're not when you're not being conscious. 19:47.38 archpodnet Um, yeah, right right? I can't agree more. It's not about just eating campbell soups in the corners in front of a candle. You know it's ah it's just about being smart and um I think that's a great point and. 19:50.96 Heather About how you spend your money but no bright. Yeah. 20:05.26 archpodnet I would just leave off on what heather said earlier fill those different buckets over time fill the roth ira fill the 4 ah one k fill the stock market right? and it'll absolutely pay off in the end and with that. We will see you guys next time I'm Andrew Cancullis signing off I'll talk to you guys later. 20:26.37 Heather Thanks everyone for joining Hopefully hopefully this is helpful. 20:32.32 archpodnet I Think it was extremely helpful. We'll talk to you guys next time.