Set your expectations for how often downs do occur and hold it together when emotions run high.

• ...declines are normal and you should absolutely expect them to happen and mentality and emotionally prepare for that to occur. (02:55)
• Remember recoveries whether they take six months, 12 months, 18 months, that's also normal. (04:55)
• Finally, this is why we have talked about diversification before, so not owning just one or a few individual stocks, but rather having a professional advisor or at the very least using an Allocation Fund, as mentioned in the last episode, to spread your money out across many areas of the market to try and smooth out those rides. (05:26)

Quote for the episode: "If you think about your kids or your job or some other experience in your life, you can likely think of where it was maybe stressful at the time but now with the knowledge that you've learned, it's really not a big deal anymore." (02:54)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

Welcome to the Enjoy More 30s Family Finance

podcast. The only podcast dedicated to making life more

enjoyable for young families. By hitting on the financial topics

that tend to weigh on us, stress us out, and distract our focus

from simply enjoying life.

Hello, and welcome to the 2nd episode of this

Raising Your Investment Mindset series. This series we're

wanting to help you reframe how you may view the scary unknown

out there that is known as investments, and therefore be

able to utilize them in a more constructive way, better reach

your goals, and make life more enjoyable.

As always, if you do like what you're hearing, please please

please make sure to subscribe, follow us on Apple podcasts.

Wherever you listen clicking the stars leaving the reviews, it

really helps us reach literally millions of other young families

out there.

Last week, we discussed how we don't want to ask if our

investments do good. We want to ask if our investments are 1) on

the path that get us to a specific goal and 2) are they

doing so effectively when compared to their peers? So if

you haven't checked out that episode yet, definitely do that

soon. Today's episode is titled Buy High Sell Low, which is an

easy self explanatory title really, but something way too

many people are actually doing out there. We don't want to buy

high and sell low. The goal for today's episode so the if you

can say this at the end of the episode, then you have succeeded

statement is "I now better understand what normal is for

how often downs do occur and I'm better equipped to not

emotionally sell low when that happens."

Recently, my son Noah being the lovely boy he is was not

listening and was pulling away to go play in the mud. And as he

did this, his elbow popped out. So this quickly became super

scary and stressful as your two year old is not able to move his

hand or his arm, is crying hysterically and looking at you

for help as you try to soothe him, calm him, as you freak out

on the inside, shouting you know, "oh my god, what am I

supposed to do?" So we take Noah to the pediatric urgent care

right away all panicky, they take him in and in about five

seconds, pop it back. They say it's called nursemaid's elbow

and since he's so young, the ligaments aren't, you know, set

enough, but he'll grow out of there. Here's a lollipop, we'll

see you later. It was one of those, well, I really wish that

somebody you know, told me about this ahead of time that this

could happen, like, hey, if this happens, and the elbow pops out

for a two year old, don't worry about it, bring him to the

doctor, it's okay, they'll pop right back in, he'll be on his

way. And you know, knowledge is power, right? If I knew that

ahead of time, it would have made the situation much less

stressful. For so much of what we do that is the case.

If you think about your kids or your job or some other

experience in your life, you can likely think of where it was

maybe stressful at the time but now with the knowledge that

you've learned, it's really not a big deal anymore. It's easy.

This is the same thing when it comes to investments. This is

the 'why didn't anyone just tell me that' kind of a thing. So

here's the knowledge, investments go up and down, they

will always go up and down. Do not expect your investments to

never go down. Unless you are parking all your money in a bank

account, basically guaranteeing little to no real return after

inflation. Ups and downs should be part of your expectations

from the start. And statistically, and this may be

surprising to hear, you should expect a correction meaning a

10% or more decline in the stock market every 18 months on

average. So if you are listening to this right now as a 30 year

old with maybe 30 years ago until retirement, that means you

should expect roughly 20 10% drops over the course before you

get to retirement and then when you're in retirement is going to

keep happening. So maybe another you know 40-50 10% drops in your

lifetime. Just like the kids getting you know nursemaid's

elbow, this would be the normal thing to happen along the way.

The problem that most people have is that they either are not

told that this is normal, or despite knowing it's normal,

they say this time is different. And they sell during the drop.

They bought high, then they sell low out of fear. And I get it I

really do. I mean you see your hard earned money declining in

value. You see your goal is getting further away. But at the

same time declines are normal and you should absolutely expect

them to happen and mentality and emotionally prepare for that to

occur. Remember recoveries whether they take six months, 12

months, 18 months, that's also normal.

So again, if we go back up to the top, if you expect your

investments to never go down, then we're saying that something

that should have happened another 50 times on average

throughout the rest of your life would never happen again,

supposed to on average happened 50 more times, but would happen

never again. So again, that it doesn't add up right the

knowledge that it that the normal is what we should be

Finally, this is why we have talked about diversification

before, so not owning just one or a few individual stocks, but

rather having a professional advisor or at the very least

using an Allocation Fund, as mentioned in the last episode,

to spread your money out across many areas of the market to try

and smooth out those rides. Likewise, having funds invested

for when you need them. So money needed in six months should not

be invested kind of thing.

As we move to the end of this episode, let's circle back

around to the goal statement. If you can say I now better

understand what normal is for how often downs do occur and I'm

better equipped to not emotionally sell low when that

happens, then you have succeeded in the main takeaway from today.

Thanks for tuning in today and join us for next week's episode

called The Stock Market Doesn't Care About Political Parties,

where we're going to speak to one of the main items that seems

expecting.

to drive peoples' sentiments and investment decisions, despite

long term evidence pointing against it even being considered

a factor.

So overall, if you're able to implement what we cover today,

then that's fantastic. You have less to worry about than before.

Go out, focus more on enjoying life. Do something fun today. If

you're wanting help with these things, though, if you have

questions you need help in answering, check out the ASK JOE

section on the show's website. EnjoyMore30s.com That's

EnjoyMore30s.com and you can also connect with me directly by

visiting my wealth management firm's site. New Horizons Wealth

Management at nhwmllc.com. Until next week. Thanks for joining me

today and I look forward to connecting with you again soon.

The conversations on this show are

Joe's opinions and provided for general information purposes

only. They do not constitute accounting, legal, tax, or other

professional advice for your specific situation. You should

always seek appropriate advice from a financial advisor,

accountant, lawyer, or other professional before acting upon

any content or information found here first. Joe is affiliated

with New Horizons Wealth Management LLC, a branch office

of TFS Securities, Inc., and TFS Advisory Services an SEC

Registered Investment Advisor, Member FINRA/SIPC.