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Everyone’s feeling the insidious effects of both inflation and a down stock market. But most financial advisors tell you to stay in the market and promise it will bounce back.

Is that the truth?

Well, it’s more complicated than that because we’re set up for failure in the stock market.

In this episode, you’ll discover how Wall Street sets you up for failure, how you can make 8% returns (and still lose money), and a better way to grow your wealth.

Listen now.

Show highlights include: 

  • How the stock market brings up the same emotions and stress as being trapped in an abusive relationship (1:18)
  • The counterintuitive reason you choose to gamble more when you could lose it (and how this affects your stock market portfolio) (7:22)
  • The psychological “Loss Aversion” quirk which devours your wealth (especially in inflationary times) (13:23)
  • Why investing in the stock market to protect your wealth from inflation could actually make inflation skyrocket (16:22)
  • How you can make 8% returns in the stock market (and still lose money) (18:41)
  • The “Stability Secret” for maximizing your wealth (without overwhelming yourself with money worries) (33:50)
  • How sales and marketing pros prey on your cognitive biases and exploit your wealth (38:37)

Remember to download Grandma’s Top Tips for an Independent Financial Future by dropping into https://grandmaswealthwisdom.com/free/. It's time for YOU to break through to a smart, stable, financial future.

If you’d like to see how Grandma’s timeless wealth strategies can work in your life, schedule your free 15-minute coffee chat with us by visiting www.grandmaswealthwisdom.com/call … just like Grandma would want us to do.

Links mentioned on the show:

Watch on YouTube here: https://youtu.be/skQiiKjLPWA



Read Full Transcript

(00:04): When we're recording this episode, the stock market is down. Many are grieving their personal losses and are stressed about what could be coming in the months. And years ahead, we're told to trust that the market always goes up over the long term. We're told we can get 8% or even 10% or more if we're just patient enough, but there's this growing sense in a larger and larger number of Americans that their accounts are more like the collateral damage of a system rigged to make others rich today, we're gonna dig into why we're grieving. Then we're gonna reveal the weapons of math destruction. Commonly used to coax families to go into and stay in the market. And finally, we're gonna offer a way forward with hope. Hi, I'm Amanda, and welcome to the wealth wisdom financial podcast episode one 12 stock market loss, stop being the collateral damage of math. M a T H math destruction.

(01:09): Hey, and I'm Brandon. And if talking about abusive relationships is a trigger for you. I want you to skip ahead just one minute. When I first dug in and learned about the stock market, how it really works, I almost immediately felt the same emotions and stress from an abusive relationship that I had experienced in my life. I could almost hear the words from the stock market as if my, uh, family member was saying, it sounded so similar and eerie, you know, and these similar things would are saying are, why are you making such a big deal out of this? You know, don't worry about it. It's it's for your own good. Uh, they, these things of, oh, it, it, it just happened once. It's not gonna happen again, it it's gonna bounce back. They're not gonna mean it, those kind of things. Uh, and there's even gas lighting with it. And that, and, you know, whenever, you know, as in this relationship, you know, I'd hear you're just too sensitive or other ways of, of gas lighting to make you feel like you were in the wrong, uh, position when you, you knew you weren't. Uh, and that was just invalidating the feelings that I had, um, experienced in that, uh, abusive relationship. Now, the stock market is in my opinion, very similar in that regard.

(02:48): Yeah. And I would say some of this comes not only from us, like hearing what people say about the stock market, but also hearing from the people we work with and talk to on a daily basis, how they feel about the stock market in real time as it happens. And, uh, I've known Brandon for a long time. Now I've come to know he is a very empathetic person. It's actually one of his strongest character traits. And just like someone would reach out to a professional to heal from verbal abuse. I totally think one of Brandon's strongest roles as a financial professional is to help people heal from stock market abuse and to really, you know, be that listening ear, hear them share their real feelings and not invalidate them, but hold them up and help them move to a better place. So if you're feeling at all, like you're grieving and you've been in this abusive relationship and you want to find a way out, I totally recommend reaching out to Brandon scheduling a time with him.

(03:50): We'll put a link in the show notes, pretty easy though. You just go to grandma wealth, wisdom.com. And there's a request, a meeting button in the top right hand corner of every page. So we, okay. Yeah. We wanna share that, not just to get you to talk to Brandon, but also to say your feelings are real and we want you to, to acknowledge them and like sit with them for a second. We're gonna help you see kind of where they come from a little bit. And then we're also gonna show you how, um, you could experience joy with money as we go forward here. Yeah. And I do think some of the empathetic, uh, in there is because of, of being in that experience myself or my physical person and seeing that parallels, you know, and, and if you have never been in that position, you might not experience or see those parallels. Right. And that's, uh, what's really made me look at this from a different lens. And here here's the thing. Are you sick and tired of hearing those same old, conventional financial advice, right? Uh, the same old things that stock market will tell us. I mean, we feel you we're fed up with the same old truisms that fall flat when you get into the unique opportunities and challenges of your own specific situations. And this show is all about bringing you historic wisdom around building wealth, with practical insights on how to apply it to your unique journey. When conventional financial thinking, doesn't get you to where you want to go. You need wealth wisdom. So let's master wealth building together. You ready to go? Amanda?

(05:30): I am. I do have a quick heads up for our, uh, awesome faithful podcast listeners. Thank you so much for listening faithfully all the time. We do have some visuals that go along with today's episode. So you might really enjoy viewing this one or at least skimming through it over on YouTube. So we're gonna put a link to the YouTube version of this and the show notes for our faithful podcast listeners though. We're still gonna do our best to make it work verbally for you. But if you're feeling like I really wanna see that, then come over and join us on YouTube, uh, to see what we're showing. And we're doing a lot more YouTube things and, and graphs and things like that. Because again, uh, looking at the actual numbers and looking at how it actually plays out, that's important to see. So, yeah, and I'm a visual learner, so it really helps me as well. So first thing we wanna do is play a game and Amanda has done this game with me twice over the past year. And I didn't even know that it was, uh, the second time. Right. Uh, and, and I said the same thing each time, you know, because I guess my memory is not that great. I didn't even realize, you know, and I'll give you time to decide your responses and I'm gonna answer the same as I did last time. Right. So I do remember now, uh, what I said, but I'm gonna answer, like I said, last time when she was doing the quiz

(06:57): For me, and, and this is a game that I learned about as I've been studying to be a certified financial planner. It's one that's commonly used, um, by experts to show, um, a particular cognitive bias. I might have changed the, uh, parameters a little bit, but it's basically the same game. So I wanna give credit where credits due here. Here's how it goes. Now. There's no real money changing hands here, but let's pretend I just gave you a thousand dollars. Then I give you a choice. We can either flip a coin or not flip a coin. If we flip the coin and it lands on heads, I'm gonna give you another thousand dollars. And if it lands on tails, you get to stay at just a thousand, right? No, no more money is gonna exchange hands. If you choose not to flip the coin, then I'm gonna give you another $500. What do you choose? Do you flip the coin? Do you not flip the coin? Um, I'm gonna choose B the extra $500. Yeah. And not flip the coin, The coin coin flip, and just make some money. Okay. Now let's say I give you $2,000. Okay. We're starting all over. I give you $2,000, but I give you the same choice, flip a coin, or not flip a coin. If we flip the coin and it lands on heads, you're gonna give me a thousand dollars or it lands on tails. You keep the full 2000, or if we skip the coin flip, you're just gonna give me $500. Which one do you choose?

(08:33): Uh, in this case, I think I'm gonna choose a, to flip the coin, cuz I don't want to guarantee that I'm gonna lose $500. Right? I mean, that, that seems obvious. Yeah. So from what I understand about this game, a lot of people share what Brandon just, uh, did they choose not to flip the coin in the first scenario? And then they flip the coin in the second one, but really if we had no cognitive biases, your answers are supposed to be the same. Either choose to flip the coin in both or you choose not to flip the coin in both in both scenarios. If I go back here to the a thousand dollars one, you either end up with a thousand dollars, $2,000 or 1500, the they're all three the same, or like they're all, those are the three options. Same with the second scenario, either end up with $2,000, a thousand dollars or 1500, but more often than not people choose kinda how Brandon chose. They tend to like the guaranteed upside of giving, getting $500. But just like Brandon they'll gamble more when they could lose money and lose that, um, a thousand do extra, you know, the a thousand, um, of what they have half of what they have.

(09:57): Yeah. That's totally true about me. I'll take the extra 500, but when I have 2000, I don't wanna lose it. Right. I'm willing to gamble a little more to keep my 2000 than to lose some of that money. Yeah. So the cognitive bias that we're looking at here is called loss aversion. Lo logically, you should choose the same thing in both scenarios because there's really just three options. You end up with the same amount of money, that kind of thing. But consciously, um, you go against that logic because you have this bias away from the loss. Yep. And you know, I'm not logical sometimes That's true. yeah. Now this is all fun and games, but what about when I have a real thousand dollars or $2,000? Like, I mean, you know, doing this flip game on a, a board or, you know, just talking about it, uh, it's all fun. But again, what if I have a real thousand or $2,000?

(10:59): Yeah. So I did study psychology in college. That's what my bachelor's is in, is in psychology. But I would not consider myself an expert here as best as I can understand it. If you have real money in your hand, I feel like we're always scared. We're gonna lose it. Even though money slips through our fingers every single day, whether we're paying our rent or mortgage, we're buying food, you know, life is expensive. We lose money every day, we, by spending it. But also for those that are a little savvy, we know that we're also losing money simply because of the time value of money simply because of inflation. Right. And we're very cognizant instead of that in 2022. Right? So what I feel like is when we have that $2,000, we want to do anything possible to make sure it doesn't turn into a thousand dollars, right. That doesn't get cut in half by inflation. And I feel like we're more inclined to take risks because of that fear of loss. It's not so much that we're pursuing a big rate of return as much as we're afraid that our value of money is gonna be lost and we're gonna lose money.

(12:13): Now that hasn't always been as prevalent. I mean, as of 1952 only 4.2% of Americans actually invested in stocks. Right. Cause that's kind of how stock market, uh, is, is kind of like wanting to make that big, great return. Right. So in 1952 only 4.2% of Americans invested in 20 22, 50 8% of Americans own stock. So what changed and are we better for it? That's a question I wanna leave to you. Yeah. And audience, I tried to research this, I looked into it like what what's made 40, 58% of Americans to own stocks. Now when it used to be only 4.2% and it's 1952 and sure we have things like 401ks and IRAs that didn't exist back then. And a lot of the time they were pressured to put money into the stock market in those things, even though that's not the only option when we're opting to use those retirement accounts. But then I came across some, a very interesting graph. I was thinking about this idea of inflation and maybe how we have this loss aver. So we take more risk simply because of inflation and I, here's what I found. Um, now this is where you're probably gonna wanna see the screen. I'll try to describe this as best as I can. This is a graph I found from us data.org that shows inflation since 1800 back in 1800.

(13:54): If you took a dollar, what is, how, what is that dollar, the equivalent to throughout the years? And we see during the 18 hundreds, little blips of inflation, but it stays relatively even, uh, there's a little increase just before 1920. There's some inflation there, but it still not, not very high, maybe like a dollar 50 is what it ends up going up to in value. But then about 1950, we start to see the, um, graph go up. It only goes up to maybe about $2 and 50 cents or so by 1968. And then it starts to look exponential from there. It starts, uh, very steep up into the right, uh, path from about 1968, all the way through 2022. And in fact, we see this really stark, stark, uh, incline in the last couple years at the very end. Do you know who was president in 19 58, 68? I, um, you'll have to look that Up. I'm curious. I'm just curious as to what happened was that when the gold standard thing happened and all

(15:08): That, I'd have to go back and fact check my dates. Um, we'll leave that to the audience cuz I also wanna show you the next image here, cuz as I was looking at this, I thought, well, what's the stock market done, uh, throughout that time. And I could, couldn't go back to 1800. I got back to, I think this is like 9 0 19 15, the Dow Jones from 1915 to 2022. This comes from macro trends.net. And you see it's super low, very low, just little. And maybe this is like 1920s right here. You know, you can barely barely a blip on the radar. 1929 can bar. Like I don't even know if that's really it, but it probably is. And then we get up here in 1950, remember at this 0.4% of Americans are invested in the stock market and it's still really low. And then somewhere, this is probably 1980 or so it skyrockets.

(16:04): And we see that up into the right. We see a little blip during, um, 2000, the.com in 2000, we see the blip in uh, 2008 with the great recession. And of course we see the pandemic here and then also 2022 at the very end here. But it's very interesting if you flip back and forth between these and you look at the stock market and you look at inflation now I know correlation does not mean causation. There are lots of factors at force here, but I ask you to search within your heart of hearts are ma if you're investing in the stock market, could it be because you're concerned about inflation eating away at the value of your dollar and might it be that the reverse could be true? The more we put into the market, the higher our inflation could be, Oh yeah. I mean, Hey, I mean, who, uh, knows, but I think that looking at this and saying, you know, even looking at our quality of life right. And saying, okay, well what do, what do we wanna be different? Right. What do we want to see? And I dunno, how do, how do our lives wanna reflect? Right. And do we wanna have that craziness? Right.

(17:26): Yeah. And so the, what I wanna get to here with this first point is that we have cognitive biases. We have loss aversions, there are all kinds of things we do that are not necessarily logical. They're emotional. And we see too much that that sets people up to become collateral damage. That sets us up for the sales and marketing messages to coerce us to do something different than what we might do if we know the full story. And I wanna go to more of the full story next, are you ready to go there? Brandon? Did you have something you wanted to add first? No. I just think again, looking at those graphs kind of going back and forth in asking yourself, uh, those questions really, and, uh, not having a, uh, lens of this is right or this is right, but going into it and saying, okay, where am I being marketed to, to do the things that may not be good for me, but it's good for somebody else. And I believe that that happens all the time, every day, uh, and asking those questions of yourself and that's why math destruction and math really matters.

(18:39): And here we go, some fun with math. So what I'm looking to do with this fun with math is show you how you can make 8% in the stock market and still lose money. What you can make an 8% average rate of return, positive 8% and still lose money. You ready for this? Brandon? Yeah. Okay. So what happens to the same 8% average return when volatility increases now by volatility, we mean the stock market goes up and down and up and down and up and down. Okay. So in both of, in the three of these scenarios, you're gonna put in a hundred dollars and you're not gonna put anything in more in you're gonna keep it simple, a hundred dollars. And in one you're gonna get a straight 8% annually in the second one, you're gonna go up 30% and then down 20%, then the third one 36%, right?

(19:31): 36. Yeah. And then the third one, you're gonna go up 56% and down 40%, which over 10 years, they all become an 8% average rate of return. Watch what happens the first one here after a year, you've got $108, right? You're getting 8% and you're getting 8% annually. So it just goes up into the right, no volatility there. At the end of 10 years, you've got $216. If you walk into any financial advisor's office and you ask them for a graph, if you give them a hundred dollars, what would, what would they do with it? Or a thousand dollars or a hundred thousand? Does the numbers don't matter? This is the kind of graph they're probably gonna show you. Yep. Straight line projection taking 8% or 7% or 10%. Doesn't matter the percent they use, but they're gonna show you up into the right like this. But we all know that volatility happens.

(20:28): We are experiencing a lot of it now as a world. And in that inflation word too, that's why we're having this, uh, video of, of inflation and volatility and how this comes together. So Yeah, that's huge. Here we go. Here's the second scenario. That's up 36% down 20%. After a year you've got $136. You're super excited. This financial advisor told you, you were gonna get 8% return and look, you got 36% up. And then the next year it went down 20%. So you think, well, at least I'm up 16% still. Yep. Cause 36 minus 20 is 16. That's you know how most of us think about math, but you're not really, you're actually down a lot because mm-hmm, increasing by 36% and then you're decreasing 20% of the hundred and 36, not the 20% at the hundred. And so when it goes up 36 down 20 and the high, you know, when it goes up 36%, you're excited, your, uh, professional's doing a really great job. You're you're very, uh, enthused goes down 20%. You're like, well, at least it's always going up. It'll recover. You're hearing those, that kind of language.

(21:46): Don't look right now while it's going down. Yeah. It'll come Back. And after 10 years you did get that 8% average rate of return. But now you only have $152 instead of 216. Now again, if you want to at a few zeros after this, can you imagine being expecting in, let's say you're gonna retire in 10 years and 10 years to have $216,000. And now you only have 150, 2000. That's a big difference for someone for their retirement, right. Or maybe it's 2.1 and you only have 1.5 million, right? Like add as many zeros as you need to, to make this really feel real to you, cuz this is what's really happening for folks. And, and it's still, uh, 8% average on both, Right? Yeah. Yeah. But wait, what happens if we increase volatility a little bit more? What if we have a super volatile market look at this up 56%. After the end of first year, the first year you've got $156 of your on your a hundred. You're super excited, man. You hired the right guy. Hit pick the right stocks for you. You're super excited. Sounds like 36, 50 6% Sounds like may of 20, 22 or 2020. Something like that. Like we added really high after that low,

(23:07): We picked game stop at the right time. Something like that. Yeah. But then the next year it goes down 40%. You think? Well I'm still up 16 and you're not, cuz that's not how these percentages work, but then it just keeps going up 56 down 40 up 56. Look at this at the end of 10 years, you have $72. Let that sink in for a second. You, you put in a hundred and you have $72. Yep. You made an eight, a positive 8% average return, but fun slash not so fun fact, you lost money. You can lose money with an 8% average rate of return. Oh. But, but I thought people tell me 8%, uh, you always go for that because it's, you're never gonna lose money. So you're telling me that you can Well and where are most people seeing? What was, what was my rate of return in my stock portfolio? My 401k, my IRA where like what's the rate of return? Uh, Usually on their report.

(24:15): Yeah. On the annual statement. Right. And the annual statement is probably just gonna show you, Hey look, you got an 8% average return. It's gonna show year to date. Um, since, uh, since the inception, you know, this is what your return is. They have all kinds of fun math. They put into that return that we're not showing you here. They can in include your contr extra contributions. Right. We're just starting with a hundred dollars. Never add anything more they can. Um, we're not including any fees here, any taxes that might be due, none of that's being factored in here. We're keeping it really simple. But if you weren't tracking this, if you weren't paying attention, you think you got an 8% average rate of return all along the way. And yet when you finally look at your numbers the day before you're gonna retire, you have less money than when you started. Yeah. And let's be honest, Amanda, how many people have you met that track? The amount that they put in to see how the real math works? How many people do you know that do that?

(25:20): I, I know one. Um, and he's, he is amazing. It was actually pretty easy. He just kept up updating the numbers in a little, um, software system. Every, he would just record them and he forgot to update his reporting for a while and he thought, oh, nothing's changing. And then he updated his reporting. Yeah. And saw a totally different story and that right. Because he actually saw the full graph. Um, and I do that actually. I don't have, you know, like, uh, we track everything, all of our different accounts. We're seeing what it really does. Um, usually update on a monthly basis. Sometimes it becomes quarterly, but, and if you do this, I would love to know how you do it so I can help more people do it too Well. And that, and that that's, I was saying is not very many people track their investments. Maybe they look at the spreadsheet and they don't track what they're putting in as well. Maybe they they're saying I have a 401k and my company matches. They're not tracking their, that match thing and all that other stuff, cuz it can seem complicated. Mm-hmm right. And, and then we're left wondering, Hey wait, I thought I was good, but I'm not. Yeah. Um, and I think that that's, uh, a challenge. Right,

(26:38): Right. But this is why we're told not to look because they don't want us, us to sell when we're down. Right. Because there's the possibility that we could still end up here and they don't want us to, you know, um, have that loss, aversion, anything like that and sell, they want us to keep their money with them. And, and for some of that looks like getting up to that green line. Uh, it become less and less likely. Right. Uh, with the volatility as well. Yeah. So, so then they were told one thing still given a dream of this is what it's gonna do whenever it doesn't. And, and that's crazy and insane sometimes to think through that. Right. But are we gonna sell when it's $72 or when it's, whatever this number is here? Probably not because we don't wanna sell when it's down either. So we're gonna hope that it goes back up and, and it becomes a vicious cycle. Yeah. And then what, and that's kind of the abusive relationship where we will say, oh, but they're okay. I can stay in this until it hits us. And then we're like back down and then going in that cycle again, which is not healthy. And I'm getting really sad. I wanna bring some hope to the conversation now.

(27:58): Yeah. So, so I wanna think about a wealth wisdom approach, right? What is a wealth wisdom approach, a smart, stable, financial future that, that we can see. Like that's what I wanna see. Yeah. We talk about every single episode. We say, we hope you break through to a smart, stable, financial future. What are we talking about here? And I wanna, uh, show you some numbers. These numbers are real. I did pull them a couple years ago for a special episode that we were doing. And I thought I'm gonna put a link to that episode of people wanna know the full story behind where these numbers come from and how they were developed. Um, but in that episode we just showed them line by line in number form. And it was kind of overwhelming today. I'm gonna just show you a graph and we're gonna talk through what, how this, uh, graph works, what we're seeing here and how we, um, have come to value smart, stable financial strategies because of what this graph shows you. Ready to look at it. Yeah. Do we talk, talk about stability now or do you wanna go ahead and show that graph?

(29:07): I think I showed the graph and then let's talk about stability. Cool. All right. Cause I want people to feel this graph and then you talk about, okay, so here we go. This, um, this is pretending we're working with a 35 year old female. This was me three years, two and a half years ago, something like that. And we're planning over 30 years by the time this 35 year old female is 65, right? And there's a blue line that represents whole life insurance cash value. And there's a green line that represents an alternative value, which is really by term and invest the difference. And, uh, what you see if you're seeing the screen. And I'll try to describe this for our listeners. Here is the blue line looks very similar to that up and to the right that we are. We're seeing before. Um, it starts really low, um, in year one and slowly but surely goes up.

(30:06): It has a little bend to it, but it's going up over, uh, the 30 years, the green line, the by term invest. The difference type line, um, is a little higher at the beginning and year three, it dips below the blue line. Then it goes and it's higher again until you're eight. And then it dips again. What we are seeing here is real S and P 500 results where volatility is included. So these first three years are have the.com uh, uh, thing in there year nine is 2008 to see the, uh, great recession kick in and we've got this amazing recovery. The green line goes way super high. Well above the blue line. This is when most people are like, I made the right choice. I'm gonna buy term and invest the difference and look how my investments are doing. I'm getting a 13% rate of return.

(31:02): I'm I aren't, I amazing haven't I made the, the best decision and then some more volatility kicks in and we see the screen line, uh, soar down three years in a row, 1, 2, 3, and now we're well below the blue line, but then there's a recovery. It goes right back up until we get to the next volatility marker. And it goes down. We end the 30 years with the blue line, significantly higher than the green line. Now I purposely took out the numbers here. Doesn't really matter if this is a million dollars or a hundred thousand dollars, but you can imagine that it would feel very different for someone, if this is a million dollars that they were building over time and they end up with much less. The important thing to see here is how these are different and what's happening here and how volatility compares with true compound interest. So let's dig into this. What is, what do you mean by stability? Brandon, talk us through that part.

(32:08): Yeah. I think stability is worth more than we realized. Right. And looking at it right now, we're in that volatile market and, and uh, maybe three years ago, four years ago, we were on the green side thinking, oh man, it's amazing. And now we're in a, uh, oh, can we pay for, uh, beans and rice? Right. And that's not good. So we wanna go back to relationships. Right. And, and this is really important. Your relationship with money is with you from the minute you get your first dollar to your deathbed, right. This relationship with money, how you are enacted on or using it. Right. I it's, it's again, a relationship. So you might spend your money on different adventures and you might have more or less at different times. So again, looking at that green line, you know, whenever you're at the top, we might spend it differently than we are when we are at the bottom of that green line.

(33:15): Right. Uh, and saying, okay, that's not necessarily healthy. Or, you know, it brings about fear and all that other stuff. So what is your relationship to money and how is that affecting other relationships in your life? Right. And again, looking at that abusive kind of relationship idea of, Hey, how am I, uh, going back or being manipulated by it? How do I become more consistent is, is kind of the thing I, I want to show in my relationships with other people. Uh, the other thing is sleeping well at night and not being stressed about money is very important to me. Right. I don't wanna be worrying about what's coming up next with the market or with whatever Netflix stock or who knows what's coming. You know, I think that that's, um, important, you know, having that, uh, no little stress and being able to sleep well at night, would you rather have a million dollars and be stressed or have 500 K and be financially free, again, million dollars and be stressed or have 500 K and be financially free. But it's not just an emotional thing. What if you could come out ahead and still have financial serenity? What if you could do both?

(34:40): Yeah. And the, so what Brandon's talking about here is here at this, uh, peak that you see on the SCR. And you're 18 is when a lot of people will be sleeping while at night until they wake up the next day and they see what, what comes next. And then they're not gonna sleep well for three years, but with the blue line, there's, there's no not sleeping well, right? Like things are continuing to go up and we're not concerned about what's happening, even though we have less money. Some of that's really important, but also if you look at the very end here, we slept really well at night, right. We saw the uninterrupted compounding growth, working in our favor with no volatility. And we still came at ahead at the end of 30 years. Now these numbers, aren't what everybody would get these aren't, these are all looking back at history.

(35:39): The future's gonna be very different, but this example is something that a lot of people don't ever get to see. Um, this is what we like to think of as smart, where you, you think about the emotions you think about how important stability is to you, but you also look at the numbers like we're showing you and you think about what what's really gonna happen, right. You're likely not a 35 year old female. The market's never gonna repeat itself. Exactly. And so on and so forth. But this chart is meant to show you the possibilities, not just be a prescription or a projection or anything like that. Think of this as one version and of an infinite number of metaverses. And you're way down here at your zero in the bottom of this chart. And you're saying, which ride do I wanna go on? But here's the fun thing. You don't have to pick one or the other. Yeah.

(36:37): We're gonna talk more about that in the next episode, but what's cool about the blue line is that you can still have access to these dollars without having to interrupt the compounding. So stay tuned. We don't have time to go into that today. I think it's time for our recap. Yeah. And I love that you brought in the metaverse, you know, and you know, that means I have some influence on you, you know, with the whole Marvel, uh, DC stuff. But, uh, yeah. And I, I believe that we are all in some sort of metaverse thinking through, and we should, uh, think in those kind ways when we're thinking about our money and who did the infinite possibilities and how can we be in a better position? So a Smart, stable

(37:25): Position, smart, stable, uh, position. Yeah. So we took this journey today to underscore three points. We often we're often show math that has the potential to make us collateral damage to stock market losses. And we are seeing it today. Right. Uh, and I don't wanna see that for you, right? So when you sit down with a financial advisor, you're usually only shown the straight line projection. If volatility has not been factored into your financial strategy, then your strategy has missing a factor. We know will be there throughout. There will be things that happen, what they call black Swan events, uh, all kinds of things. And it might not be in the market. It might be, uh, you know, in your own family, uh, somebody passes away or something it's volatility. So,

(38:20): Or that one stock that you bought or that one, you know, ETF or whatever. So that's the first thing is one to show you kind of how you're set up to, um, have some math destruction, cuz you're not shown the full math. And then the second one is we wanna, we wanna say, it's okay to make decisions, not just based on math, we have this natural tendency to avoid loss. We take more risk. If we feel like we could lose, we want you to be aware of, of that part, right? Those cognitive biases that we all have, cuz we're all human. We shared one with you today. There's many of them because we know just, just Watch TV. We know that there are sales and marketing people out there with their messages that they know your cognitive biases biases. And they're going to use that to get you to do business with them. They know that you've got that loss aversion and they wanna get you to do something that you might not do. If you saw the other side, like the game we played earlier, where you, you, the big reveal of, Hey, this is, this is what's really happening. The cognitive bias that you have. So be be, um, we might come back to some of those in future episodes, but there there's all kinds of information out there from actual experts about cognitive bias. So you can learn more about it and be on the lookout for it

(39:40): Like psychologists and therapists and Dan, things like that. Not that we, we, we, we, uh, we've learned a lot. You do have that psychology degree that you use on me sometimes. No, no. And the most important is that you do not need to feel like or be collateral damage of stock market losses. Again, you do not need to stay in an unhealthy relationship with wall street. You can choose to include stocks in a healthy way, along with a financial foundation that brings you peace of mind, no matter what happens with the Dow Jones or with inflation, you know, you again, do not need to be collateral damage. So hit that subscribe button because next time we're gonna talk about the importance of accessibility. Just like we all need access to financial wisdom so that we can build well, having access to your dollars for emergencies and opportunities is a value most don't remember to include in their financial strategies until it's too late or until an amazing opportunity. Like say a pandemic opportunity, pandemic listened for the next episode to learn more.

(41:00): So until next time, keep building your wealth simply and sustainably. So you can break through to a smart, stable, financial future. And we hope you live long and profit. And don't forget to write a review for this episode topics presented in this podcast or for general information only, and not for the purpose of providing legal counting or investment advice on such matters. Please consult a professional who know your specific situation.

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