- Hi there.
Glenn Doherty here from Jigsaw Private Wealth.
The share market is going bonkers.
Are you strategic or emotional?
Now, these videos are here to help you get
retirement tips to help educate you,
make you money, save you money
and help you achieve an incredible retirement.
And at the moment,
the share markets are going bonkers,
and it just reminds me of a recent
situation with my own son where I got involved
and made the wrong move, and jumped too quickly.
He came home one day from school,
he came into my home office, and, crying,
and I was wondering what was going on.
I didn't like to see him upset.
And he said, "dad, dad, dad," he says,
"there's only gonna be one cricket team,
and I'm not gonna get much time to play."
And I said,
I wanna to get a bit of a
background of what was going on.
And he said, "oh, I've just been told
there's only one team,
and they're gonna be swapping players
in and out, in and out."
And I'm just going, "What?
That doesn't sound right.
Doesn't sound right at all."
So, I just jumped the gun and I've gone,
"No, no, no, don't like all that."
And he said he didn't wanna play.
And I said, "well all right,
the other options you got it is,
you go to the local club,
see whether they've got
an available spot for you to play in.
So, I fired off all these emails.
I went back to the PE teacher of the school,
cause I thought it was a bit unusual.
And, a little bit after a lot of stressing,
and a lot of stuff I should have never
have jumped to conclusions on,
I shared an email back from the PE teacher.
He said, "look,
there's gonna be two teams,
everyone's gonna get to play every week.
And, then that sorted out the whole problem.
My son was calm again.
He was quite happy about that,
and it just taught me a lesson
that I keep telling clients all the time,
particularly when it comes to shared markets,
that there's a lot information,
and a lot of misinformation out there,
and how you react is very important to it.
So, let's have a little bit of a look
at the moment of what's the been going,
the headline's out there, you know,
the shared market tumbled and was a broad selloff
the coronavirus spreads,
and then you've got a lot of others
that come out as well.
And it looks like this,
you've got, you know,
they say "tumble, sea of red."
And, you'll sit there going, "oh, geeze,
what am I going to do with my investment?
Do I sell out or am I going to loose it all?"
It's one of these things that,
from an emotional perspective,
you're emotions start to kick in, you know.
If you've experienced this before,
and you're hardwired,
then you know to not listen to this noise.
So, I guess a key point at the moment,
this is all just noise,
and these things generally
happen in share markets all the time.
So, let's just look at the facts.
Just like with my situation with my son.
I had to go back
to the source of the information
to get the right information,
so we knew exactly what was going on.
So, how do you sorta feel
when you see this information come out?
Do you feel nervous?
Do you feel stressed?
Are you panicking?
Cause if you're close to retirement,
and this is going on, you know,
there's been talk about a global recession,
and all these sorts of things,
or are you just someone who's just calm?
That ought to be the ideal place to be,
but most of us are emotional thinkers.
So, let's have a look at this.
I do apologize for this
being a little bit blurry.
This a chart on all the past epidemics
that we've had going all the way back
to 2003 with SARS,
the Dengue Fever,
the Swine Flu,
Ebola,
Zika,
and it just shows you
in the first month what happened
in the majority of these cases.
The third month, what happened,
the six month,
and also the one year, three year,
and five year as well.
Just to show you the recovery.
And, in particular, I guess,
if you have a look at the chart
there as well is,
even though there might have been dips
or the outbreaks,
or the epidemics
may have had an impact on share markets,
they were short lived.
And, I think the one thing
to remember at them moment also is,
don't forget share markets are at all time highs.
So, in due respect,
there were may be somebody
due for a bit of a pull back in the marketplace.
This just happens to have been
one of those things that has caused that.
Let's just go on and have a quick look at how the
particularly the strategy share markets
has come in here.
We're looking in the S&P/ASX 300 growth of $10,000
since it's inception from 2002 up until 2020.
As you can see,
there's dips that were in there,
this is the global financial crisis
that was in here, and it bounced back.
You've had dips all the way along,
so it's actually gone a long way.
And, if you've been watching your portfolio,
you've would have seen it go up.
But, there are some keys when it comes to this.
The key to successful investing,
it does require some discipline
when the markets do melt down.
Now, I had a client on the phone this morning,
who was talking conspiracy theories,
and all sorts of stuff,
and I was just going,
"hang on a minute mate," (laughs)
I said "look,
let's just bring it back a notch."
We're talking about things
that we cannot control.
Now, we know all sorts of things
that's gonna on with share markets.
There's a lot of noise out there about that.
The media is 24/7.
But, there's time to be calm,
and to think logically and rationally
about how you invest,
and the actions that you take next.
So, what is a Disciplined Investor do?
Well, you stick to your investment strategy.
And, one of the big things
that I was saying recently is,
"people just aren't diversified".
So, when these things come,
it hits them hard,
and pretty hard.
And, if this sort of event occurs
around retirement,
particularly if you're very close to it,
its now time to really sure up
you're investment strategy.
And, actually you are diversified,
then you're taking up
just enough risk to get the job done,
but not do any damage.
And, there's a certain way
that we go about doing that for clients
to make sure they can see through
their retirement quite safely.
Certainly, I think it's a good time,
and a wake up call for a lot of people to
rebalance your asset allocation.
You know, when we talk about
asset allocation that's the mix between
shares, property, cash, and fixed interest.
Now, if you haven't got that spread appropriately
for the risk that your comfortable with
that can have a massive impact on your imbalance
or your experience through your investing.
So, it is important to get that right.
And particularly, when share markets have gone up
in the last five to ten years,
you'll find that your risk levels,
if you haven't adjust them,
have gone up as well.
And, it's a good wake up call
at this point in time to
have another look at that
and see what you need to do
to bring them back in line
with your comfort level,
so it doesn't do any damage down the track.
And, the next one is really just
focus on what you can control,
and let go of the rest.
So, you can control where you invest your money.
you can control the amount of risk that you take.
You can control the amount of money
that you have invested.
You can control the types of strategies
that you use to build up your nest egg
to live an incredible retirement.
Focus on those things,
make sure you're building a bit of safety
into your strategy,
and the rest will look after itself.
And, obviously try and stay away from
the news channels,
because there just negative.
So, are you someone that's worried
about whether you're gonna have enough
for retirement?
Concerned about your progress?
And I guess, the biggest concern we see
a lot of people have is,
they worried about,
and you might be the same,
about whether they're gonna have enough.
Actually, how much do much do I actually need
to retire on?
and what we're finding at the moment,
is a lot people are working off
incorrect assumptions.
People are living longer,
returns on investments
are most probably gonna be lower,
some people take on more risk
then what they need to take on,
others not enough risk.
There is an ideal level
of which way to look at
for clients to make sure they can safely
get through retirement,
and those assumptions are re-tested,
so that they've got enough.
Are you stressed about your investments,
not quite sure about your investment strategy,
or even if you're doing the right thing,
or investing in the right areas?
Or, are your wondering whether your
maximizing all your opportunities
from a tax prospective, a surplus prospective,
and also from maximizing your retirement pool,
so you can live an incredible retirement?
So, if that's you,
then I think it's time
to book your secure retirement call.
And, we've got the link there if you wanna
have that call.
Now, I'm gonna tell you now,
we are not trying to sell you anything
on this call.
We are trying to help you out.
So, if there are things
that we can help you out with,
we certainly let you know,
and we're very selective of the type of clients
that we actually take on board.
So, we don't take on everyone.
But, if we think we can help you out,
we'll let you know,
and then we can decide what to do from there.
If not, we'll try to point you
in the right direction.
Give you some information
that it can prove you're position,
and get you on your merry ways,
and give you a bit more confidence
about the future,
about your retirement.
So, if thats you,
make sure you book your call there.
And, just to put it out there.
This is only general advice,
it's not specific to you or me.
You'll need to seek advice from a
qualified financial planner
if you are looking for advice.
So, I hope that's been useful.
Got any comments,
feel free to email me back on the email
that you get this on,
or at "gdoherty@jigsawprivatewealth.com.au".
Other than that,
I hope you have a great day,
and I hope this is useful,
calms you down a bit
in relations to the investments,
and you can go on and invest safely and calmly,
and have an incredible retirement.
Okay guys,
Bye for now.