Investing - How to Survive in Tough Financial Times | Donald Fittsgill Jr | Skillshare

Investing - How to Survive in Tough Financial Times

Donald Fittsgill Jr, Podcast Doc | www.podcastdoc.com

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5 Lessons (14m)
    • 1. Introduction

      0:40
    • 2. Protecting Your Investments

      3:41
    • 3. Life Insurance

      3:59
    • 4. Payday Loans

      4:33
    • 5. Tough Summary

      1:10

About This Class

Everyone looks like a genius when the market is doing well. But the real question is, "How do you perform when things aren’t going your way?" I’m Donald Fittsgill Jr., aka Podcast Doc, former finance guy, turned voice actor, podcaster and course creator and I have a great short class for you - How to survive in tough financial times.

In this class you'll learn:

How to protect yourself financially

What to stay away from in tough financially times

Protection 101 - How to Survive in Tough Financial Times

Transcripts

1. Introduction: everyone looks like a genius. When the market is doing well, all of your decisions. Air Golden You're making money Rich guy laughing in the bar and all is well. But the question is, how do you perform when things aren't going your way? I'm Donald Fit Skeel Jr. A k a. Podcast doc, former finance guy turned voice actor, podcaster and course creator. And I have a great class for you today, how to survive and tough financial times. In this course, you'll learn how to protect your investments. You'll learn what places to stay away from, and hopefully you'll have a great time as well. So don't delay enroll today, okay? 2. Protecting Your Investments: Let's go. Most financial advisers will tell you that the hardest part of their job is obtaining a client's. They'll also tell you that the second heart is part of their job, is keeping the clients, and I think everyone can understand that, especially if you watch the news. The news is very good at keeping people in, ah, heightened state of anxiety to the point where some people just say enough, I want out of any and every investment I own because the world has gone bananas. We're emotional beings, and our emotions tend to affect our decision making process. This is fact in finance. This is explained by something called behavioral economics, which is a method of economic analysis that applies psychological insights into human behavior to explain decision making. It's this behavior that causes us to panic and sail low and then by high. And here's a pro tip. You want to do it the other way around. You want to buy low and sell high. You're welcome. Your decision to change investment strategies should ultimately be centered on your portfolio's performance. Your tolerance for risk when you expect to need the money and any life changes that may occur. So how do we take the emotion out of it and protect ourselves? Well, assuming that you control your own investments at a minimum, you can play stop orders on your equity investments. Ah, stop order is a protective order. For instance, let's say you own stock X y Z, and it is currently trading at $50 and you want out. If it ever goes down to $45 by placing a stop order at $45 your stock will look to be sold at the best possible price. One stock X Y Z trades at or below $45 I say at or below, because in a fast moving market, a stock in trade right by your price in an instant outside of stop orders, people also tend to go into more stable investments during periods of uncertainty, like bonds and precious metals. With bonds, you have three main types corporate, municipal and Treasuries. The highest risk in the highest return is with corporate bonds in the lowest risk in the lowest return are with Treasuries. Municipal bonds fall somewhere between corporate bonds and Treasuries with risk and return , but the interest for most municipal bonds, or immunities, as they're also called, is exempt from federal taxes. This is good. Then there's precious metals. Precious metals have always been a hedge for investors in the stock markets gold, silver, platinum, palladium and copper medals that investors could consider when trying to diversify their portfolio and escape inflation, financial concerns and economic turmoil. There are more aggressive alternatives, like bear market funds, which are funds that seek to take advantage of a bear markets. A bear market is a market in which prices air falling. And then there's short selling where you look to sell stock that you don't own at a higher price and then buy the stock back at a lower price. You were still buying low and selling high, but you've switched the order in which you do them. Just a side note. An easy way to remember the difference between a bull and bear market is by thinking about the animal itself. A bull would use its horns toe lift up, and a bear would use its claws to claw down. Bull market up, bear market down and summary. I believe it's rarely a good idea to completely leave the market due to chaos. The world will always be full of chaos. But by using certain safeguarding and hedging strategies during periods of uncertainty, you can not only survive but thrive as well. 3. Life Insurance: I have a super power. It is a power that I first noticed as a child. And it's a power that I still well to this day. You see, I have this internal clock that allows me to wake up any time I want to wake up. For example, if I tell myself that I need to wake up at 5 a.m. in the morning, then I'll wake up at or just before 5 a.m. Without sin alarm. Amazing. You say? Yeah, I know. I call myself Clock man. And while this might be the least useful superpower when it comes to helping humanity, it is something that is pretty much help me my entire life. Every morning when I wake up, I address my superhuman self with these words. Congratulations, clock, man. You did it again. Well played, bro. Well played. Interestingly enough, though, I still set my alarm. I don't know why. I just do. I guess I just want to be protected just in case my superpower fails me just in case things don't go. How I planned can the show still go on? This is the same question that people ask themselves when looking for life insurance questions like I plan on living a long and productive life. But if I don't, will my family be taken care of? This is a very real and serious question that many people will have at some point in their lives. Which brings me to the topic of the show today. Life insurance lets you What is life insurance? Life insurance is a contract between you and an insurance company in exchange for timely premium payments. This contract would entitle your named beneficiary to receive a lump sum payment or death benefit upon your passing said differently. Life insurance pays someone money when you die. Life insurance is either considered temporary or permanent. Temporary Life Insurance, also known as term life insurance, is offered for a specified number of years and has no cash value. Permanent life insurance has no specific time frame and accumulates cash value. Term life insurance is considered a pure death benefit and costs much less than permanent life insurance due to the lack of cash value and temporary nature of the contract. So why do you need it? There are many reasons why you buy life insurance, but here are the main reasons. Number one to pay final expenses. Funeral and burial expenses can easily cost thousands and thousands of dollars. Life insurance can remove this financial stress during a time that will undoubtably be emotionally stressful. Is well number two to replace income. If you died leaving behind a spouse and young Children, it may be hard for them to make ends meet without your income. Money from a life insurance policy can help maintain your family standard of living and pay for expenses that go along with raising Children number three. Paying off a mortgage Life insurance can help ease the financial burden your family may face to keep a roof over their head after you're gone. Money from a policy can help them continue to make monthly payments or pay off the entire balance. When do you need it? You should consider getting life insurance as early as you can. The older that you are from a life insurance company's point of view, the closer you are to death, the closer you are to death, the more insurance will cost. Who needs it? Anyone who is concerned what will happen toe loved ones financially. If you pass where do you get it from an insurance company more specifically from someone licensed to sell insurance. There was a time in my life when I was licensed to sell insurance stocks and real estates, but I no longer work in that capacity. My advice when choosing an agent would be this. Go with someone you trust. And don't be afraid to compare prices and agents, for that matter. After all, this could be an investment that you hopefully have for very, very long time. Got it? 4. Payday Loans: question. Do you remember the name of the song that came out in 1990 that told you to never trust a big butt and a smile? I do. In 1990 Bell, Biv Devoe came out with a song called Poison, and I remember singing the song in the hallways at school, specifically singing the part. Never trust a big butt and a smile, though I didn't understand it. I thought it was interesting that Bell Biv Devoe really wanted to convey that there was something untrustworthy about a big butt and a smile together in Conjunction, if you will, so much so they would sing it fast and energetic. And then they would sing it slow and soulful, just really trying to get their point across, I guess. And then they told you that girl is poison. By definition, poison is a substance that causes injury, illness or death. There's Bell Biv Devoe song. There's an eighties rock band, poison ivy, cyanide, Hydrofluoric acid, mustard gas and pest control, to name a few. But there's also another poison, and this poison is a predator. You tend to find this poison in middle and low income neighborhoods. In fact, you see it everywhere in low income neighborhoods, usually lit up with colorful signs, this poison is payday loans. Never trust a loan shark and a smile. Let's go. Payday loans grant people such as yourself money ranging from a few 100 to a few $1000 at a time. The borrower then has to repay the loan with interest and fees, usually a couple of weeks after origination. As collateral. Payday lenders hold personal checks or bank account a ch information for repayment. It doesn't take much. To qualify for a payday loan, you need to at least be 18 be a US citizen, have a bank account and be gainfully employed. Most payday lenders charge you a specific dollar amount per every $100 Borrowed Payday lenders Air Also notorious for adding on additional fees for transaction costs. Let's assume you take out a $500 loan. This loan will generally be charged about $20 per $100 which means in two weeks you now need $600 to close out your $500 loan. If the loan is extended past the two week period, you Oh, another $100 bringing your total payback amount to $700. As you can probably tell, this can get out of control very quickly. What tends to happen to a lot of people is that if circumstances don't change, you end up having to take out another payday loan to resolve your current payday loan. This is a vicious cycle that is very difficult to escape from. This is great for the payday loan company, but horrible for the borrower, so much so that some states in America don't even permit the practice of providing payday loans because they view it as predatory lending. In addition to being extremely costly, obtaining payday loans also damages your credit score. So what can you do? If you have an immediate need and no money, you can speak with your existing creditors. Look Cos. When presented with the option of being paid late or not being paid at all, will typically choose being paid late, especially if you can agree to come to some consistent payment schedule. Even if it's small, it is worth your time to reach out and at least ask for leniency. There are also charitable credit counseling agencies that can help you with your finances and in a lot of cases may even contact your creditors on your behalf to help with your situation. You can also reach out to your employer to see if they haven't advanced pay system in place . Or you can see if your employer will allow you to sell your outstanding vacation time again . It doesn't hurt anything toe ask, except maybe your pride. And while I don't recommend borrowing money to pay creditors, if possible, a short term loan from your bank or low interest credit cards would be better options than using a payday loan as well. Once the immediate need is gone, you should definitely focus on strategies that would help prevent this situation from happening again. Things like creating a sustainable budget, an emergency fund, taking a part time job or even selling possessions that you don't need. In short, if you're thinking about using a payday loan, think again. You can't afford it. And remember, never trust a loan shark in a smile. That shark is poison 5. Tough Summary: Well, that's it. You've learned a lot today. You learned how to protect your investments through stop orders, bonds, precious metals and even more aggressive alternatives like bear market funds. You learned about life insurance, how it can be temporary or permanent, how it can be used to pay final expenses, replace income or even pay off a mortgage. You learn to stay away from payday loans how payday loans can lead to, ah, horrible cycle that many can't escape. How This is a form of predatory lending and what you can do instead of taking a payday loan . Things like speaking to your creditors, asking for an advance from your employer or creating an emergency fund. This class was short, but it packed a lot of information in the time we had together. If you'd like to take a deeper dive, please check out my other financial courses. I have courses on budgeting, credit investing, crypto currency and so much more. If you'd like to connect with me, feel free to reach out at www dot podcast doc dot com for more information. Thanks again for your time. I hope you enjoy this course until next time