Ask Us Anything | Your investing questions answered!

HOSTS Maddy Guest & Sophie Dicker|31 August, 2021

Meet your hosts

  • Maddy Guest

    Maddy lives in Melbourne, works in finance, but had no idea about investing until she started recently. Her favourite things to do are watching the Hawks play on weekends, reading books, and she says she's happiest, 'when eating pasta with a glass of wine'. Maddy began her investing journey when she started earning a full time income and found myself reading about the benefits of compound interest in the Barefoot Investor. Her mind was blown, and she started just before the pandemic crash in 2020. What's her investing goal? To be financially independent for the rest of her life, and make decisions without being overly stressed about money.
  • Sophie Dicker

    Sophie lives in Melbourne, and enjoys playing sport, and then drinking red wine immediately after finishing sport. She works in finance, but honestly had no idea about investing until her partner encouraged her to start. She says, 'my interest has only taken off from there - I find it exciting… I mean who doesn’t like watching their money grow?' Her investing goal is to build the freedom to do things that she's passionate about - whether it be start a business, donate to causes close to her, or to take time out of the workforce to start a family. Right now, there’s no specific goal, she just wants to have the freedom when she'll need it.

Hey gang, you’ve asked and we will (do our best to!!) answer. This week, Producer Sasch put the call out on socials to find out all of the investing questions still on the minds of the the YIGC community. In today’s episode, she puts the questions to Sophie and Maddy. As always, if there’s anything that you still don’t quite get, jump onto the YIGC Investing Podcast Discussion Group on Facebook, or send us a DM on Instagram. We LOVE helping to answer your questions. 

Keep track of Sophie and Maddy between the episodes on TikTok as well! Got a question or a topic suggestion? Email us here


In the spirit of reconciliation, Equity Mates Media and the hosts of Meet Pay Love acknowledge the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander people today. 


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Maddy: [00:00:06] Hello and welcome to your in good company and investing podcast, striving to disrupt the norms in the finance industry. I'm maty and as always, I'm in some very good company with my co-host, Sophi, and today also our producer, Sash. [00:00:19][12.7]

Sophie: [00:00:20] Hey, Sash. Hi, Maddie. [00:00:22][1.6]

Sascha: [00:00:23] I was like, Sophie always goes, go away my time, jump in early. [00:00:28][5.1]

Maddy: [00:00:28] It's hard with three people. [00:00:29][1.0]

Sophie: [00:00:30] I'm not sure when to speak. Now, we have recently opened the lines to our Wijk community on Instagram at Wijk Podcast's to ask us anything about investing and also about ourselves. [00:00:44][13.8]

Maddy: [00:00:45] And our wonderful producer Stasch has collated the questions and she is going to be putting them to us today. [00:00:50][5.3]

Sascha: [00:00:51] I'm so excited. I'm so ready to find out all these details that you know both about investing that I've been wanting to know, but also about YouTube, because we've been working together for about six months and there's still stuff that I don't know about. [00:01:05][13.7]

Sophie: [00:01:08] But before we get into today's episode, we would like to acknowledge and pay respects the wonder people of a nation who are the traditional owners of this land. We pay our deepest respects to the elders past and present and to the next generation who we hope to create a different future for. [00:01:22][13.3]

Sascha: [00:01:23] So thanks for having me today, guys. I know that I'm a bit of an interloper like you. Normally it's just a two person thing. But as you said, I thought it would be a great time to take this opportunity to ask you a couple of burning questions that obviously the community has and also I do. So we're going to be doing this across two weeks. The first episode today, I'm going to be asking you all about burning, investing questions, and then next week we can go more into the personal questions side. So I'm giving you a bit of time. Just work out how much you want to reveal what's going on. But are you ready? Are you ready to answer all our community question? Let's do it. So the first question that we had from our community is some Birkerts let you buy partial U.S. shares. Does this mean you don't really earn them? I think this is a really great question, because I know personally that I own a few things through steak and I just put in and money. No, like I think I put in like one thousand. And so it allocated me like four point sixty five shares of something. And I didn't bother to kind of think about what that meant. I just was happy for the water to be fulfilled of however much I could buy for that thousand. So what does that actually mean when it's when I've got those partial shares? [00:02:41][78.8]

Maddy: [00:02:42] Yeah. So I think you are referring to fractional share investing that. But I want to just step it back really quickly to remind everyone of the difference between chess and cassiterite. Yamoto So chess sponsorship means that you're holding the shares in your name. And to do that you're a save a pin number and the shares are associated with your hand, which is your personal sort of identification number. On the other hand, you have the custodian model and that means you don't own the shares directly in your name, but they're held under custodian for you. So the way I understand it is that all Australian brokers that have us share trading on it, whether it's fractional or not, which is what you were talking about before, they are held actually on a custodian model. So that just means that they are held on trust. And you Agnes's lack legal terms, JÖRG, and definitely not our domain, but it means that you're the beneficial owner and not the legal owner. Yeah. [00:03:40][58.0]

Sophie: [00:03:40] So when it comes to the fractional shares, meaning you might own part of a share and not the whole share, it means that you've got that custodian, the person that owns all of the shares on behalf of everyone. And then that's why they can break it up onto that custodian model. It's not like in the chess model when you actually own the shares that, you know, Sophie owns half a share and Maddie owns the other half of the share in this one. The custodian owns everything. And then that's why they can break it up. So you you don't own them under your name, but you still own them through the custodian model. [00:04:11][30.6]

Sascha: [00:04:12] I just want to ask you both, a lot of people get worried about not having your hand and stuff, but these companies, like Australia, has a lot of paperwork and like systems that to be a broker, you have to be proving that you're judging people's names. And if a broker did go under, that's a risk that I hear people are worried about all the time. But we do live in a country where there are rules and regulations to be in place in case that happens. Is that right? [00:04:41][28.8]

Maddy: [00:04:41] Yeah, I think it's a really interesting one because, you know, I think they say that a custodian has never gone under, but I think it really is personal preference. I feel I can last year, year, 18 months, there's been so many things that have happened people have said would never happen. And I don't mean to like. Fear, but I guess it's not like I hold all my shares through him and through the chest metal and I feel kind of nervous to explore the custodian model. So if I know you invest sometimes for a superhero, which is custodian, but I guess for me it's like this, it's never happened. It would be the first time ever event. But I guess for me, I'm kind of like, well, that would still happen. But that being said, I learnt today that when I thought that my youth shares were chess, they're actually their custody of models. So all of a sudden I was like, oh, that actually kind of, you know, to know that I'm already doing it kind of just made me feel more comfortable about it. I don't know. I'm going to my own sort of self bassal at the moment. [00:05:42][61.2]

Sophie: [00:05:43] I think it's important to note that around the world, most brokers would use the custodian model. In Australia, more brokers in Australia use the chess model. So some people do say there's risk in it. And as many said, it's personal preference. [00:05:55][12.3]

Sascha: [00:05:56] OK, so it really it's what you guys say all the time, which is do your own research and make sure that you have a good gauge of your own risk profile, which I think is the perfect segue into our next community question, which is thoughts on no, I don't know, this one Cardinal or Darwesh [00:06:13][16.9]

Sophie: [00:06:14] Dollars [00:06:14][0.0]

Sascha: [00:06:15] Madonna and say your thoughts on the general crypto climate. I mean, I just feel like it is the thing that that people talk about now. You know, five years ago, everyone had a podcast. 10 years ago, everyone had a garage band and thought that in the next nirvana, now everyone thinks they're a crypto verka. Like, what do you what do you guys think about it? [00:06:36][21.0]

Sophie: [00:06:37] I think my first thoughts with crypto is always, you know, if you have the risk tolerance for it and you've done your research and you're happy with your research, then absolutely go for it. I have a lot of friends who are very bullish on crypto personally. Cordano is I mean, Catano is a smaller crypto dogecoin, I think is a bit of a maime crypto. I think you can't really make predictions about crypto because who knows what's going to happen tomorrow could drop by 50 percent. And yeah, it's so volatile. If you do your research and you listen to podcast about crypto and what YouTube and feel comfortable with it, then totally jump in. You've got a bit of spare cash to play with. Why not? But we're not experts on the field. And personally, for me at the minute, dogecoin is way too volatile for me to jump into it. [00:07:24][47.5]

Maddy: [00:07:25] Yeah, look, I'm just going to reiterate everything. So if you just said because it's not an area that I'm comfortable with, it is an area that I want to learn more about, but I haven't yet invested the time into learning about it. And it's just not something that I'm comfortable with where I am yet to invest in any kind of crypto. [00:07:44][19.2]

Sascha: [00:07:46] I think that's really those are really great answers and it's clear it's not going anywhere. But obviously the coins and the different names are going to change over and we can all just like kind of sit back and watch and see how it emerges. [00:07:59][13.2]

Maddy: [00:08:00] Yeah, I mean, I think it's a it's an interesting space because like the use case for crypto, especially in developing nations and things like that, I think is super interesting. So I definitely want one to learn more about it. I just I haven't done it yet. [00:08:12][11.9]

Sascha: [00:08:14] Okay. Your next question, that question, I don't know. This is from so let's call them anonymous, but they've said I am investing through res and self wealth. Are there reasons to consolidate all of my investing? So can I just clarify? RES is like a micro investing app where it takes little amounts out from your main bank account on a weekly or monthly, or how have you set it up basis and self wealth is more of a like a new style birka in the style of like superhero and steak and [00:08:48][33.7]

Maddy: [00:08:48] comsat because self wealth is sponsored. But yeah, it's more of your general online Broca platform. [00:08:54][6.2]

Sascha: [00:08:56] So it kind of saying that res, which is like maybe something that's happening passively behind the scenes and in software wealth, is something that you're doing actively. And this person just wants to know whether they should bite the bullet and just put the bowl together. [00:09:08][12.6]

Maddy: [00:09:09] Yeah, I mean, I think it's just completely personal preference. Like, I know someone who uses Bryce is more of a savings tool because it automatically deducts amounts from the debit account. H is that Mom thought, I'm not 100 percent sure how it works, but then others use it as a way to actually get into investing and got comfortable with investing and which is a really, really great way to get into it as well. I think any way that you want to use a platform is totally fine. I guess it's just like as long as you feel like, you know, what's going on with your investments is like quite important. So as long as you feel like you can kind of keep an overview and know what's going on, then you can use as many platforms as you like [00:09:46][36.5]

Sophie: [00:09:46] to points that I would say about, you know, when considering a micro investing platform. And this is actually really relevant conversation because I was having this with a friend the other day. But you've got to think she was saying, you know, she's investing in ETFs or should I? You know, use something like Bryce or spaceship, and I was saying that one of the points you really need to think about is the fees, because if you have something like Re's, which is a three point fifty a month fee and let's say your, you know, which translates to like forty two dollars a year and let's say you're putting fifty dollars a month into raise so you can automatically say every fifteenth of July or August, whatever, September, take out 50 bucks and put it straight into my account and then it also deducts off your purchases as well. But if you're putting in 50 bucks a month, that equates to sixty six hundred dollars a year. And so you need to make sure you're making at least about an eight percent return over the year because otherwise you're not actually getting back the fees that you've paid. So 50 bucks might be a really small amount or it might be a really large amount to someone. But when using those micro investing apps, just make sure that you are outperforming what you're paying in the face. [00:10:52][65.5]

Maddy: [00:10:53] Yeah, I do think the difference between micro investing and investing yourself on the brokerage platform is quite interesting. I mean, we really advocate for, I guess, investing outside of macro investing because it really helps you to sort of get that good learning experience. You know, macro investing. You choose a risk profile and the platform will invest on your behalf into sort of a bunch of asset classes based on your own risk profile, which is great. And it's a really good way to get comfortable with your money being in the stock market. But I guess with an investing platform like self wealth or any of the other platforms out there, you know, you get to go and do the research yourself and you get to pick stocks or ETFs yourself and actually take the step of investing. And then you can follow the news, follow the company and, you know, understand how the economic conditions around you are influencing your investments. I think it just makes you far more aware. And I think, you know, we often talk about having a bit of skin in the game is just the best way to learn and the best way to help you get, you know, inspired about investing. And it can really sort of enrich your investing experience. So I think it depends on sort of what stage you're at, what your interests are and how much time you're willing to commit. I think there are definitely benefits of both, but we definitely love hearing when people sort of take that next step, get out of the macro investing and are able to sort of really get started investing on their own. More to say. [00:12:20][86.3]

Sascha: [00:12:21] So it sounds like you're both saying and this isn't financial advice, but like that, as long as you're aware of the need for which which particular platform, like if you feeling like there's still a psychological hurdle for you to get involved in the market, then think about what's going to be easy for you to get your toe in the water, so to speak, but be really aware of those factors as fees. And whether you're having skin in the game does help you as a potential investor to get to be actively involved. [00:12:52][30.2]

Maddy: [00:12:52] Maybe you should have some fun. [00:12:53][1.1]

Sascha: [00:12:55] No, I'm just trying to summarise to. So the next question, which I think is super relevant, I mean, we've got a couple of months up, obviously, till the next tax time, but you might also be looking at your previous one. But someone's asked, what information do I need to keep records of to make my tax time easier? [00:13:22][27.1]

Sophie: [00:13:23] Yeah, this is a good one. And we have a whole episode on tax, so definitely go listen to that one if you haven't yet. But I think a really good point when thinking about tax is the only really cares about your investing in shares or ETFs when you turn a profit. So either when you get capital gains, which is, you know, selling your shares or ETFs and making a profit from that, or when you get dividends, which is a form of income from holding a share. ATFP So to be aware of if you are making any kind of profit, that's the figure that you're going to need to put into your tax return. If you've bought something that doesn't have any dividends and you're just holding the long term, it's very unlikely that you'll have to really put anything into your tax return, for that matter. And I have said in the tax episode, any documentation that you get, hold onto it. If it comes in the mail, take a photo of it and check it into a folder on your phone. So that's easy to say. I think the main documents that you want to kind of have is the record of your sale or purchase dividend statements, any records of any dividend reinvested under a dividend reinvestment plan, and then any other annual tax documents that you get for unit trust, such as ETFs. [00:14:32][69.8]

Maddy: [00:14:33] Yeah, I think Messitte in our tax episode that she loves nothing more as an accountant, that when people come to her with all of their documents, like it seems like such a trait. But yeah, definitely just don't do what I did when I started investing, which was just get the letters and chuck them out. I would not recommend that. [00:14:51][17.6]

Sophie: [00:14:53] No, that's not financial advice. [00:14:54][1.8]

Maddy: [00:14:57] That is financial advice. Don't check out your documents. [00:14:59][2.1]

Sascha: [00:15:01] I would say the best thing I ever did was just get an accountant, like I've got to say, like I did my own tax for years. And then the year I was like, you know what? I'm going to pay a couple of hundred bucks to get someone else to do it. And then she got me a bigger tax return. And I was like, oh, maybe I should have done this in the first place. [00:15:21][19.7]

Sophie: [00:15:22] Not tax advice, [00:15:23][0.8]

Sascha: [00:15:24] not tech yet, [00:15:24][0.5]

Sophie: [00:15:25] but [00:15:25][0.0]

Sascha: [00:15:26] a good accountant can really hold your hand and make you feel better about it. So I'm all for outsourcing my problems and taxes one of them. [00:15:35][8.7]

Sophie: [00:15:35] Your accounting fees are also tax deductible, so you can put that in your deductions, which is great. [00:15:40][4.9]

Sascha: [00:15:42] All right. So this one is a bit more personal, I think. What are your investment plans? Do you automate with raise or super superhero or do you use stock pick in every period? Now, I'm going to preface this by saying this is definitely just going to be Madian Sophie's personal opinions and you should not take this advice as as admirable as they are as people. And as much as I don't want to copy what they're doing, if you do want to make sure that you're making these decisions for yourself, but maybe tell us a little bit about your journey of like, did you start doing race and did you start doing micro investing? And what has been your journey in terms of stock picking? [00:16:22][39.5]

Maddy: [00:16:23] Yeah, so I've never used macro investing platforms, mainly just because when I started, I didn't even know that they existed. So I started by buying ETFs just with a broker that a friend recommended to me, which was self wealth. And I haven't automated any of my investments. And I guess that's just because I actually really enjoy personally, I really enjoy the process of writing and researching. And I get quite excited when I get paid each month that I get to sit down and be like, oh, what am I going to put my money in this lump? But I guess my strategy is I think I have four ETFs that I dollar cost averaging two sorry. I think I have four ETFs that I dollar cost average into. And then I buy into other stocks that I'm following and interested in and researching at the moment. I guess one thing that I am thinking about currently is that I'm conscious of kind of trying to consolidate my portfolio a little bit. I feel like I've gotten very excited recently about like lots of different stock picks that I'm intrigued by. And I feel I have got a little bit of money in a lot of different things. And I'm starting to think whether maybe it would be better for me to have a little bit more high conviction on my investments and, you know, do more research and have more of a thesis around why I'm investing something just because I think it's easier to follow and to keep on top of and then put my money in those things rather than having, you know, lots of little investments on the side, which is what I'm kind of getting towards now. [00:17:58][95.5]

Sascha: [00:17:59] So you're trying you're moving out of your fast fashion state to. Capsule, wardrobe stage. Yeah, and feel like I'm going to spend a bit more on pieces that I'm going to wear forever, then like buying this sequinned jacket for my gym and I love it. [00:18:14][15.7]

Maddy: [00:18:15] I love how you make me fat. I really appreciate this respect if [00:18:18][3.8]

Sascha: [00:18:20] the producer does just enough. Thank you. Sophie, what's your perspective on it? [00:18:24][4.4]

Sophie: [00:18:25] So I actually start with a micro investing platform a while ago, but when I kind of did the numbers, I realised that I probably wasn't getting that much gain out of it. So I moved into investing in stocks and I was kind of like maybe just buying into a bunch of random different things. And I actually sat down one weekend a couple of months ago, and I got a spreadsheet out and I picked four ETFs and I picked a couple of companies that have got my conviction in. And now every month I kind of just pick one of those to put in. I don't have a schedule. I'm just like that one feels good on my paycheque day. Yeah, it's good. Sit down. Really work out what you want to invest in and then you don't. I love staying on top of things and I'll always, you know, jump into a new stock if I think it could be good and could add value to my portfolio. But otherwise it keeps it pretty stocks and it's like automating, but it's not actually automatic. So I love going in and doing the trade. [00:19:15][50.3]

Sascha: [00:19:16] I think this is a really good question to ask because this is something I've been thinking about. How do you compare overlapping with ETF stocks? Because I think this is something one especially our editing the guys show and I hear someone talk about like the funds that they manage and I'll be like, that sounds amazing. I want to go buy it. And then I look at the stocks I have and I'm like, oh, I struggle with the emotional side of it where I'm like, oh, I regret buying this one because now I want this one. What's your perspective? I can relate to that. I actually thought really. I know. And so I think like especially when there's themes and like, you know, active ETFs and like thematic investing is becoming such a big thing. And so, yeah, I just want to hear your perspectives on how you guys make that judgement call. [00:20:04][47.8]

Sophie: [00:20:04] I think of off the back of what I just said about sitting down and like working out some ETFs to invest in. That was the easiest way for me to say whether I was overlapping or not. So you just spoke about, like thematic investing. I was like, OK, I want a couple of different themes in my portfolio. And when you, like, put it out in a little spreadsheet, it seems a bit daunting. The spreadsheet, I know it's not for everyone, but if it were [00:20:24][20.0]

Maddy: [00:20:24] dark, it definitely could be [00:20:26][1.2]

Sophie: [00:20:27] it can be a PowerPoint. But they show it to your housemates doing a PowerPoint. Shame not hundred percent on that. But yeah, if you can just kind of say, like, for example, I was looking at a couple of different apps. One of them was like U.S. companies, and then one of them was about like climate change. And I found like, you know, the big S&P 500, like the spy has Apple, Microsoft, Amazon. How do you say that company? Nvidia? [00:20:52][25.3]

Maddy: [00:20:53] Yeah, I think Navidea. [00:20:55][1.8]

Sophie: [00:20:56] And then I was like, OK, cool, that one looks cool. And then you've got your sustainability leaders and the sustainability leaders as a beta shares one called ETHE, and that still has, you know, Nvidia Apple because it's actually negative screening for fossil fuels and not like actual like climate change innovation necessarily. So when you kind of put it out, you can say quite easily the like or I do want to sustainability one, but maybe not the one. Maybe I'll try something like the Earth. The beta shows Earth. [00:21:21][25.5]

Sascha: [00:21:22] Just going to jump in and point out that when you're saying, like all these specific companies, you can find that out in your Birka, you should or the ETF website, you should be able to go in and download like an info pack that has the full listing. [00:21:35][12.6]

Sophie: [00:21:35] Yes, right. Yeah. On the websites, it's super easy to access that information. [00:21:40][4.1]

Sascha: [00:21:41] And if you can't find that, then that's a that's not a good then [00:21:44][3.6]

Maddy: [00:21:45] you should definitely [00:21:45][0.3]

Sascha: [00:21:45] be you should be investing in something where you can find out. Yes. Exactly what's under the hood. Right. Absolutely. OK, I think just by the time [00:21:54][8.7]

Maddy: [00:21:54] they have like the top ten is the top ten holdings, the super obvious on the website. And then you can normally like open up a PDF and it has all of the holdings. I guess the one thing I would say about this, because I was having this conversation with the friend last weekend and she was really stressed about investing in two ETFs that had overlapping holdings, but she was actually talking about one or two companies. And I guess I was just trying to explain to her that, look, there's not a problem with overlapping like it's called. We refer to it as concentration risk sometimes like it's not necessarily a bad thing. I think the important thing is that you're conscious of it and you know that you're holding, say, Microsoft in this ETF and not ETF. It doesn't mean you can't do it because you might actually think that Microsoft is a really great share or really great company and you're happy to increase your exposure to that company. It doesn't have to be a bad thing. What's important is that you're conscious of it so that if you don't want that added exposure, you can maybe say, OK, this one's not for me and let it go by. [00:22:53][58.1]

Sascha: [00:22:53] I feel like this next question is a really natural flow on from this, which is like, you know, sitting down at your table, you've done your spreadsheet or your PowerPoint or your Microsoft Word thing. And, you know, there's always that will you hit an hour, two hours, three hours into doing anything that's brain draining? And so this community members written and said, I've just started researching and I've got analysis paralysis and I totally understand what she's saying. How can I counter this? Do you guys have any tips or any tricks or like what you do to get over this? [00:23:27][34.5]

Maddy: [00:23:28] I mean, so and I both talked about this, like, we can totally relate. I only started investing just over 18 months ago. And I remember so clearly sitting on the couch and trying to figure out what I was going to invest in and just being really overwhelmed because there are a lot of options and it can be really daunting. And like you get on this roll and then you hit this wall and you're like, what you like, what is the difference? Why am I even bothering? And you just stop. But I guess, you know, the biggest thing that I would say is that just like just, you know, if you if you have something you're interested in and you have a few different options and you're not sure which is the best, like it just doesn't matter that much like stop puts like pick one of them and say how you go. And if it's even if you just put a small amount in so that you feel comfortable, that is absolutely fine. But I think what I just found the easiest thing was actually starting. And once I did you get on such a roll and it becomes so much easier and a hundred percent, the hardest thing is putting your money in that first investment that you [00:24:30][62.0]

Sophie: [00:24:30] do, and especially with some of the big themes of eightieths. Let's just ETFs. Let's just say you're going with a country or like a region. A lot of them invest in very similar companies, the the ETFs broadly. So you're really not it's not a huge there's no real pursuit of perfection when it comes to choosing an ETF that's in a broad theme because overall they're investing in pretty similar stuff. So, you know, you can look out for the fees and maybe try go for a lower fee option. But at the end of the day, like if it's a big, broad theme that you just want to start with one. As Mattie said, it's very likely that a lot of the big ones will be investing in very similar stuff. [00:25:06][35.6]

Sascha: [00:25:07] So all of this in mind, someone is asked, do you believe there'll be a market crash? Oh, no correction. And I think we should say this in like, you know, obviously, that was one March last year with the pandemic. And I'm going to just like especially working in this space and doing podcasts in this space. Like, I think a lot of people March last year were really prepared for this to be pain that was going to last for a lot longer than we experienced. And so this seems to be something on the in the back of lots of different people's minds. So what are your kind of thoughts on approaching volatility in the stock market and like as relatively new investors, like, what do you tell yourselves? Because we know there's going to be another crash, like there has to be one, right. Because that's just what history tells us. Yeah, yeah. And I'm not saying that as like and everyone's going to lose all their money, but we know that there will be a correction and then we know we'll climb up again. Like that's what happens if you look at the last hundred years of the stock market. But how do you to mentally prepare for that yourselves? And what have you told yourselves to kind of counteract that? And how have you found the last two years? Like, what are your thoughts on that? [00:26:26][79.0]

Sophie: [00:26:27] To be honest, like over covid and I know he has a good story about this, but, you know, when you are investing and you go in with the mindset that you're holding it for, you know, until I'm like 50 or 60 years old, the crash is just a kind of a blip. Like I remember when the March crash did happen and I watched all the stocks that I had. I was down by so much and I'd even bought them at cheap prices. And I was like, I'm screwed. I've lost all this money. But at the end of the day, if you're in the mindset of that, you're going to hold for the long term. You just need to try and get comfortable with that volatility. And if you're applying the dollar cost averaging kind of perspective, you can also win at that time as well by putting some money into the market and then making bigger gains. So I think it's just really all about the mental state of you doing it for the long term. And this will happen and it's probably likely it's going to go back up again. And you just have to be comfortable with that. [00:27:17][50.6]

Maddy: [00:27:18] I've said before, but I'll say it again, that I started investing like not long before the crash due to Covid. And it was probably one of the best lessons that alone, because, like, I finally had sped up the courage to start investing and I put some money and almost immediately it just went down by a long shot. And the most annoying thing was, was like, I remember chatting to my dad and being like, I'm going to start investing. And I listen to the Equity Mates Get Started Investing feed series. And I was feeling really good about it. And Dad was like, oh, one of my mates says that this covid thing, which at this point was like still only really in China, you know, was like one of my mates says that this covid thing is, you know. Everything's going to crash because of it, and I sat there and I was like, [00:28:07][48.5]

Sascha: [00:28:07] everyone always says [00:28:08][1.0]

Maddy: [00:28:08] that something's going to happen and there's never a right time to invest. I was on my high horse about it and then like a month later, I was like, oh, damn it. But what it taught me was like, I put money in and immediately everything was super volatile and kind of scary. But I had told myself that I was going to follow this plan of putting this certain percentage of my income in every month. And I followed it. And now it's really paid off because what it meant was that I was still investing all throughout that period consistently. And now I've seen the gains because of the correction. I guess when I was just reflecting on then it was that, you know, it was all good and well for me to feel OK about that because I had a couple of thousand dollars in the stock market. You know, I had a I had only just started and I had put a little bit of money in it I was really comfortable with. So for that to go down, you know, it was a bit confronting. I think as I get further into my investing journey and I have more and more money invested, then maybe it would be a whole lot scarier if we had that kind of volatility again. But I think it was a great lesson because the same things will apply. And I just need to follow the process and trust that over the long term and we are lucky we have time on our side over the long term, it will be OK. [00:29:28][79.3]

Sascha: [00:29:29] Yeah, I know that I'm not a host of this podcast, but I was just going to say my experience was so similar to yours many I'd been investing for a while, but I topped up in February twenty twenty and it had been the first time in a couple of years that I'd been like, I have a I have a bit of money and I'm going to go and put that money into my investments. The difference was that I didn't have as much in my emergency fund as I should have and I was like, nothing's going to happen. I can top that up over the next couple of months. It'll be OK. It's more important I get in the share market and then Covid happened and I was faced with, like, needing that cash because I didn't know what I was going to get laid off and I didn't know if I needed to fly home. And so my experience of it was there is a when people are like, make sure that you're comfortable with the money that you're putting in the stock market. Make sure that's money that you don't want to touch for five years. Make sure that, you know, you've got your emergency account, get your savings sorted first. That was like a really real world lesson for me of going in, or literally three weeks after I'd bought a top up of really safe shares that have bounced back. But I was like, I really want that money back. I really want that back in my bank account. And, you know, all's well that ends well. But I think that was like a bit of a real world experience of going actually, there's a reason people tell you these things and they there's a reason that people say this is money, that you're going to look away for a couple of years. So be prepared for that. [00:31:03][94.8]

Sophie: [00:31:04] I think there's a good point in there as well. I like I personally have, you know, really love start like kicks in the investment journey and getting on to it every month. I want to invest more, but I recently took a step back and was like, whoa, I actually don't have enough in my emergency fund. I was just way too keen on putting money into the stock market. So I stopped investing for a couple of months just so I can really, like, start to top that up. So it's OK to, like, start and stop once you're in the market at whatever point, you know, to make sure that your other money goals are also being fulfilled. [00:31:31][26.7]

Sascha: [00:31:32] Exactly. So we're going to continue this like quiz, because I'm really enjoying learning about you, too. But we're going to continue next week, so make sure you tune in. I'm going to be asking Sophie and Maddie all the questions that they usually ask their guests, which is very exciting, but it's been such a pleasure. I'll let you tell us when you get in touch with you, [00:31:55][23.5]

Sophie: [00:31:56] you [00:31:56][0.0]

Sascha: [00:31:58] know. No, I'm not. I'm going I'm going to hand it back over the nuts and bolts. Do you, too? Because I don't know them nearly as well as I should. [00:32:04][6.6]

Sophie: [00:32:06] OK, well, always jump onto our social media. You can find us on Instagram at Wijk podcast. Also our Tik-tok Wijk podcast. We started to really jump on the trends and show our personalities. [00:32:19][12.9]

Maddy: [00:32:21] Lockdown is getting to us and Tik-tok is becoming a thing. So if you want to get on that flays get around us on tik-tok. We need support. You can find us on Facebook. And so what is our Facebook page [00:32:33][12.2]

Sophie: [00:32:33] by Jayce Investing Podcast. Discussion group. [00:32:36][3.0]

Maddy: [00:32:37] Yes. You're going to feel like you it I'm the Bryce really [00:32:41][3.2]

Sascha: [00:32:42] review for it. And if I didn't ask the question that you desperately wanted to ask Matty and Sophie today, then do go along to their Facebook group because they're both in it regularly and they will definitely. Well, I shouldn't promise that you'll definitely answer, but I know that they're always keen to talk to community members. So if there's something that I left off the list that you like, I just want to know what they think of the. Come on and hang out with us that easy. [00:33:06][23.8]

Maddy: [00:33:06] Nothing makes me happier than getting messages in. Our dams are on the Facebook group. Every time someone tries on [00:33:12][5.6]

Sophie: [00:33:12] the face, I get a screenshot on every time. Did you see this question? Let's go [00:33:12][0.0]


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