Ok, so let's talk money. Time for the Financial Health and Wealth Show with Financial Advisor Cassandra Frazier of Avila Wealth. All she talks about is money, money, money. Financial topics relevant to your life heard every Sunday morning at 10 or available anytime as a MyTalk podcast. That's great. I love podcasts. Let's start the show. Here's your host, Miss Shannon. Yes, we are so. We love talk finances. You know what? We're new every time, Cassandra. I seem so new, but I forget that now. I'm actually, Mike, tell Rocco to take it out because it's been a year of that and I keep talking over it. Gosh darn it. Anyway, everybody, thank you for joining us for this edition of the Financial Health and Wealth Show here on MyTalk 107.1. I am Miss Shannon here with my good friend Cassandra Frazier from Avila Wealth. Cassandra, thank you for bringing in your We One with us. Producer Ellie, can we bring up Mike Six as well? We got a little guess and he'll let us get lovely, lovely. We always appreciate everybody be parting the show. We're going to be covering a lot of great information today about what goes on with your finances and your behavior around those finances. But before that, I know you have some other things you want to bring up today as well. We do. September is Childhood Cancer Awareness Month and that's something that I know many of you have walked with us during all of Cecilia's, her journey with cancer, which started after I had been doing the show for a year and a half. And so this was in 2019, June. So Cecilia, how old were you at that time? She actually, it's funny, I was talking to her on the way here and she was surprised to hear how old she was. Right. How old were you when you were first diagnosed Cecilia? I was two. Yeah. She was two, so she thought she was like four or five. I said, well no, you were actually two weeks before your third birthday. Right. So I wanted to have her on just for a quick second here because there's a lot of organizations that I know do things around September to try and create awareness and things. And also just to share that she's, how are you doing Cecilia? How are you doing now? I'm doing good. Yeah. Now, how old are you? I'm eight. Eight. I know. Time flies. It flies so fast. So what grade are you in? I'm third. Mm-hmm. And she's doing really well. So for anyone that you know that might be going through the throes of childhood cancer because there are, I mean, it's sadly, it's more common than I think a lot of us know. Right. And before what we knew as well, thankfully there is fairly, like they've come a long way with the treatments and things. And there are a lot of great organizations that support families that are going through it. Like last night we were at the twins game. We were out on the field for the twins game, which was exciting, wasn't it? Yeah. Did you, you got to be down there. So Pinkie Swear is a great organization. They help families across the country, but it started here out of Minnesota, the twin cities give kids the world as a great organization that we've been part of that, that they help serve a lot of the wishes for families down in Disney that go down there, make a wish. Right. I mean, LLS, leukemia, lymphoma society, there's a lot that are doing things to try and help support families. Right. So one thing I will say is that we need more help with trying to figure out what's causing it and preventing it. Yes. Because there's really very little that I know of anyway, and we're a little bit removed now. She's been offered treatment since 2021 in August, but it's one of those things where I hope more and more there's a focus on what's causing it and how do we prevent this. Right. And a lot of the organizations that I work as well seem to dovetail into what you just said where there are funds that once we're here, yes, here's what we do. And it's always great that we have these organizations that can help just support you because this is a whole family experience. So lots of ways to support you. And if nothing else, come and help you out with some daily tasks and some other things so that you can most focus on what your family needs and your child needs. Absolutely. But there are less organizations that we hear about who are doing the research to get in front of some of these things. So it's always good to look at different organizations, support you in different ways. So it's fair to go, okay, this is the one I want to support this general idea of getting care and supporting families that are dealing with this. But there are a variety of different ways that you can do that. So you can go, this is the outreach one. This is the one that helps them go on this particular outing. But then this is the organization that's funding research for things. Yep, absolutely. And I think a big part of it is our health in general, right? And understanding it, doing what we can with our health and knowing as much as we can about our health and about what's good for us, right, because health can be so individualized. Right. So we've learned a lot through her experience and things and definitely made some changes and shifts and we all are doing our best, right? We're all doing our best. So it's wonderful that we have shows like Dr. Meghan's show that you can have a resource and things and other great people out there working with people's health. And I think it's always good to remind people that you're allowed to ask questions and to look at the background of things and you don't have to be an expert in it, but you're allowed to find the people who are the experts in your circle and build that circle up. So if you have a question, you can go, no, I need to communicate with somebody who's going to be able to help me address these questions. Even if it's, we don't know the full answer right now, but here's who's working on it, I think is really good to know sometimes. Absolutely. And if we, we were at Children's U of M at Masonic and we had just a phenomenal care team. And I'll say this is that if you know, whatever you are going through that you need help with, your team is so important, right? And so critical, I think to your overall success and your well-being throughout the process. And that's why too, today we're going to talk about behavioral finance and things and having a team can be so helpful when you're looking at your finances as well because that is a huge area with so many different specialties, so many different things that can impact your overall long-term financial success, and so to have those people in place, and we talk about the team a lot. Yes, absolutely. You need a team. Yeah. It is so helpful. It's so helpful because I talk to people even in the financial industry that specialize in different areas, and then I go to them for things, but they come to me too. So there's so many people in the financial industry that they need to have different people in different positions, just like, you know, we were at the twins last night, just like a baseball team, right? Exactly. Different people have their different specialties. Right? And you might be okay at more than one specialty, but it's really good to be able to focus on one thing sometimes. Mm-hmm. It is. So Cecilia, thank you so much for joining us here this morning. Appreciate having you. This is like the quietest she ever is. I was telling Shannon before she is this chatterbox, and she's normally, she's talking up a storm. Cecilia, before we, because we talked about, your mom and I talk about this all the time about how when she's at home, she likes to encourage you guys to know about how your money works and your finances. So do you have any tips for people on good ways to save? Do you enjoy saving? Mm-hmm. Well, do you get, when you earn money, do you get to spend all of it? No. Okay. You look disappointed in that. Would you like to spend all of it? Or are you okay not spending all of it? I don't want to spend all of it. I want to say some of it and give it to other people. That is fantastic and exactly what we encourage other people to do. That's wonderful. Mm-hmm. It is good. You guys do a good job. You guys do a good job of portioning your money, don't you? You put some towards giving and some towards saving for long-term and things and some towards you're spending, right? Yeah. Mm-hmm. Now, I have a question too, Cecilia. Your mom says that she likes to help you. If you want to buy something, figure out things that you can do around the house to help earn the money. Isn't that true that she figures out little jobs that you can do at home? Mm-hmm. So what's your favorite thing to do if you need to earn some extra money because you want to buy a friend a birthday present or something? Well, to help her around the house, maybe vacuum dishes in the kitchen. Mm-hmm. That's fantastic. I'm glad you shared that because there are some people who are listening right now that probably need some advice on what they should do if they want to earn some extra money and all of those sound like great ideas. That's right. And they're helpful. Yes. And they're very helpful. Right. And one thing about Cecilia is that she does things with a great attitude. Yes. And she is very happy. She doesn't complain about doing things like that in chores or even whether she's getting paid or not. Fantastic. Fantastic. She will sit there doing dishes or helping to clean the, like you said, the kitchen or vacuuming. And she does it with a great attitude, don't use Cecilia. Yes. [laughter] Thank you very much for doing that. You are encouraging some other people to have a great attitude too. So thank you very much for showcasing that. Mm-hmm. So getting on, like I said, so there you go. So September childhood cancer awareness. And if there are organizations too out there that we're not aware of that are doing great work on the preventative side, I would love to know about them. Absolutely. So if you're out there and you're hearing us and you are part of that or know of them, please reach out to us because I love still kind of having a pulse on some of that. Right. And that's a few years removed from her treatment, which is a wonderful thing, we're very thankful. Mm-hmm. So let's get on with our... Yeah. Don't worry about it. Yeah. Behavior life is life. Uh-huh. Life is life, I know. So behavioral finance is, I think it's such a fascinating topic, right? And especially in a year like this year that we're going through with the election, coming off of COVID, right? Just all the different things that can play into our emotions and that can impact our behavior ultimately. Yes. Because I think it's fascinating to have these conversations so that there is that awareness of how might my behavior be impacting my overall results, my success, especially when it comes to my finances. Like even when Cecilia brought, when you brought up Cecilia and the attitude and what we have to do there, it can merely go, "Well, am I getting in my own way?" Yes. Because we can, right? We can. And I think it's interesting because I've known people where, whether it's someone who says, "Well, I have to set five alarms," right? Yes. Because otherwise, I won't wake up or I have to do, it's like you have to outsmart yourself, correct? Or you have to get ahead of your own behavior. And so that's what we're going to talk about today is how do you at least identify or are you're able to at least know enough to be able to say, "Maybe I should be having someone help me in this area because I want to make sure I'm not sabotaging my own finances," right? Because I know myself, right? Right. Something wrong with you, it's just be smart enough to know what you, you know, how to avert certain things that might prevent you from having the success you want. If somebody needs to help you out with that gold, there's no shame in that. Oh, my gosh. Absolutely. Absolutely not. That's why there's the reason we have personal trainers. Right. I mean, if I was someone who worked out regularly, I would need a trainer. I know myself. Right. I'd be like, "I'm not getting up this morning." Fair enough. So we're going to have plenty of time to talk about what might be helping you understand your behaviors regarding your finances. We'd also love for you to be part of the show. You can call us at 651-641-1071. Be right back with the Financial Health and Wealth show with my friend Cassandra Brazier from Avila Wealth here on my talk when I'm 7-1. Welcome back to the Financial Health and Wealth show with Cassandra Brazier from Avila Wealth. I am Ms. Shannon. We would love for you to get your voice into the room. If you have any of those finance related questions, regardless of whether it's specific about what we're going and going to talk about today about your finances and your behaviors, you can still be part of the show. Call us at 651-641-1071. Before we start talking about behaviors, though, I do want to remind people they can set up those complimentary consultations and those 15-minute get-to-know-you calls very easily by going to Avila Wealth.com. That's A-V-I-L-A Wealth.com. Yep. Thank you guys, by the way. Those are so fun. I look whenever I see a new 15-minute intro call on the calendar for that day, it's exciting because I think, "Oh, it'll be fun to meet this person or this couple," or whoever it is. It's that exploratory conversation and, "How can I help you see if we're a good fit?" Yes. Those are great conversations. By the way, too, we just had this really fascinating, intentionally thriving and retirement webinar last week. We're going to do another one, so if that's something that you think would be on your radar of interest, let us know. We can always update you on that, but it's so interesting. One of the things that they talked about in this webinar was that we really, our identity a lot of times, whether we realize it or not, is in our job, right? Our career. Absolutely. Because when you're introduced, right? You talk to... Oh, what do you do? That's one of the first things we usually ask someone. Yeah. So what keeps you busy? Yeah. I do all the time. Yeah. And I understand how your identity is because when I've, throughout my career, switched careers. Sure. And then gone, oh, well, now I have to say this, or you have to explain it. And it's interesting, too, about whether you're worried about whether you're getting judged. How do you explain? What do you do? So, yeah, I can see if you're now, I retire. I hear some friends that are like, well, I'm just retired. I'm like, not just. You worked really hard to be able to do this and have time to yourself, so I get that. Yeah. So, and there's so many people, and again, we have the biggest group in our population is the baby boomers, the biggest segment of people, right? And they are at the door or already retired. And so this is a big thing that we're seeing now. It's the last predictable milestone in our lives. It's one of those things, again, where you realize, I really identified, right? I identified with my career. Now, what am I doing? Who am I? What do I want to spend my time doing? So if you bottom line, if you're someone who is feeling that, I think is very, first of all, very normal. Yes. Secondly, there are places out there that are working with people. In fact, so again, we're connecting with different advisors to continue to bring this information to people who are retired or it could be just a transition in general. Yes. Because I think transitions in our life, major ones, whether it's kids going off to college or even having a child for the first time, whatever the case, maybe you're divorced or you're married again and you were single for most of your life. All those different transitions, I think, can be very interesting and difficult. Even we were just talking about silly with our cancer. That was a huge transition, both starting out the process but also when we finished it. Right. So there's all those different times in our life and everyone's life is different and we all handle things differently. So there's resources out there again and if you want any information before our next webinar, certainly feel free to reach out as well. Yes, at AvilaWealth.com AvilaWealth.com A-V-I-L-A, Wealth.com, yes. So let's, again, behavioral finance. Let's talk about it. First of all, how many of you have seen Inside Out 2? I don't know if you've seen it. Not yet. No. Okay. So it's now, it's on Disney Plus. Okay. There we go. We just watched it recently and it's so interesting and I was thinking about while you're watching, if you've seen Inside Out 1, you understand the concept, right? We're inside of her mind. You can kind of see all the different emotions and how they interact with each other. Yeah. How they interact but also kind of how one takes over at different times and then the other. And I think that kind of helps to give us maybe a conception as well or of how do our, how does behavior impact our finances, right? Right. Because a lot of times it's that anxiety piece and it's, that's really prevalent in Inside Out 2. Yes. And so I think that's a really great visual of how does anxiety sometimes really take over and really affect the way that you interact with everything in your life. Yes. It can also make us act, it can impact us in acting in ways that we would normally not act. Right. It's like we're outside of ourselves almost or how, you know, who we are if we were, if anxiety wasn't at the, at the helm, right? And so I think again, with the news and the way, right, everything is sensationalized, I think the news can help to create a lot of anxiety in our lives. And that being said, I think that can impact us making decisions that we maybe wouldn't otherwise make in any number of areas. Right. Whether it's to travel somewhere or not travel, or whether it's to eat out around other people or not, or whether it's how do we, how do we live our lives in any number of areas, finances. Yes. As well. Right. What should I do with my money? I'm going to pull it all out of the market. Right. Or I'm going to only invest in this way. I don't want to lose any money. So we're going to talk. Or the FOMO can make you so anxious that you're so anxious that you made miss an opportunity that then you jump at this opportunity without using it, using your information to decide if it's a good opportunity for you. Yes. Because you're like, well, no, I'll be the one that was left behind. Right. So lots of reasons why anxiety pushes you to do something one way or another. It absolutely can. So that's why I think, like I said, I thought, I thought Inside Out too did a really great job kind of showing a visual of how anxiety can really take over and things. And this year's been a wild ride, right? And a lot of emotions and things and high stress, and that's where I think dealing with that, it can cause health issues in our lives and create other things. And then when you have health issues, that finance is one of the last things that is on your mind, right? Because if you have other health issues, maybe brought on by stress anyway. So there's all these things. But here's the thing I would say is that, again, if you're at a point where you want some help with some of these financial things, this can be a pretty painless process, right? Where we walk you through everything and we help take the reins and help get things on track for you if there's things to get on track. So let's unpack some of these things, because there's many things that it might be helpful to consult with a financial advisor before you look at. So let's put some things into perspective. Now I'm going to let you know we have one minute before we go to break. So what would you like to talk about over the next minute so I don't let you get too far? Well, so I want to address volatility. Yes. Let's put some volatility, things into perspective, and because anxiety, we all know this, right? Anxiety can really be dialed up when there's volatility in the market. And I know last week we talked a little bit about this, the week, sorry, the week before. We talked about how with the election with things, we don't know the direction yet. So volatility can be higher in the market. And a lot of people are putting things on pause because they're going, I just don't know. And I love that you also share that people would rather know that something's going to be negative. Sure. Then then not know at all and how that affects them. Yep. Just knowing instead of the unknown. Right. So cognitive bias is one of the first things that we're going to talk about and how that plays a role then in our decision making with our finances. Right. So we also want to remind you that if you've been anxious about anything, you can call right now, especially if it has anything to do with your finances, you can get your voice into the room by calling us at 651-641-1071, that's 651-641-1641-1071, we'll be right back with a Cassandra Brager from Avila Wealth here on the Financial Health and Wealth Show on MyTalk 1071. Welcome back to the Financial Health and Wealth Show here on MyTalk 1071 with Cassandra Brager from Avila Wealth. I am Ms. Shannon. I enjoy talking to you about finances from a variety of perspectives. But whenever we get to talk to it from a behavioral standpoint, because it really encourages people to get to know themselves and then from a perspective of you can't figure out how to maximize your responses to things instead of feeling like things are done around you or to you. Right. Well, here's the way I interceded with my own behaviors to be able to maximize everything that's in my life in general. Right. To help to just an understanding in some of these things about yourself can help your overall outcomes. Right. To be different maybe than how they've been in the past. Absolutely. And this can, I mean, this is all of us, right? And this has nothing to do with how much money we have or don't have saved. And it's just understanding our own behaviors and things. So let's talk about cognitive bias. Yes. And this is where sometimes we think we're being rational and that we can maybe, maybe we can outsmart the market. And I know a lot of people have done, they've started doing their own trading or they want to do their own management. And I think there are some people that can. But I also think that again, when there's, first of all, it's very difficult. Yes. It is very difficult. And that's why we have so many money managers and that's why we have so many different investments. And that's why we have, there's no one best thing that is the best of everything. So that's where I think it can get really tricky. Right. And I do think sometimes we get fed with the concept of, well, the way they used to do it is so old school, you should just shake it up and do something new. And I'm like, should we though, like sometimes it needs to be a mix of things. So we're keeping up with the way things might be affected because technology changes all the time. Access that you have to things. And so I love the idea of educating people on all this, on what we do, but then finding the right people, as you said, they can go now, say it to me one more time. Like I'm really confused or say it like something like that and have it be okay. Yeah. Mm hmm. And that's where I think just having, again, having someone to bounce some idea. So I was thinking about this, right? I heard about this and I just had a client over the weekend here too. I saw her email and just looking at, someone was telling me about these couple of things. And is this good or not? Would it be good for my situation? Right. Because for some people, it might be good for their situation for others. It may not. And part of it has to do with how much risk are you willing to take? And if your risk level is kind of in the middle of the road, should you or would you want to take on something where the risk levels may be towards the top? Right. Or maybe toward the bottom. Right. It could be an inappropriate, you know, fit for you based upon and a number of areas. And so, and also as it has to do with your financial goals. Mm hmm. I think that one of the first things is kind of knowing where your comfort level and your risk tolerance should be. And also that's where, again, an advisor can help you with that to identify some of that. So we can have that overconfidence bias, which is it's overestimating our value, our insights. And sometimes again, that can lead to taking on those inappropriate risks that we just talked about. And so we've seen people on the wrong side of crypto. Again, I'm not saying anything bad about crypto because I think a lot of people have made a lot of money in that space. Right. It's not regulated though. Right. So you have to be very careful about where you're investing in the crypto area because I've had people do very well. I've seen people do not well at all and lose a lot of money. Right. So it's depending on where do you need it to do for you right now. So. And what is your risk tolerance? Mm hmm. And then, and then same thing with penny stocks, right? I've seen some people that have made a boatload of money in penny stocks. And then for every success story, there can be 10 that have not. So. I remember before crypto existed, like, or we talked about it, like when I was in college, people were like, this is how you're going to make your next million is you got to do penny stocks and do all this stuff. And now I feel like I hear about it so less often and we've moved on to whatever the new hotness is now. Yep. Mm hmm. And I think that's part of it too, where we have, we're in such an instant gratification society. Right. There's some of us that feel like we're trying to make up for lost time. Yes. I get all of that. I don't think getting to retirement though is a get rich quick type of a plan. Fair enough. And so yes, there are things you can do that can give you shortcuts, right? Are there shortcuts and things that can be more efficient to getting there? Absolutely. That's where an advisor can come in. Yes. That's where an advisor can help you with some tax strategies, working with your CPA, looking at where you're investing, making sure you're in the right tax buckets timeframe, all the different things, right, to make sure, yes, when you get there, you're going to hopefully pay as little as possible in taxes that we can help you with and yes, make sure the money will last as long as we can look at, you know, feasibly having it last and you can be as comfortable as we can hope, right? Absolutely. So there's all those things and you can take a lot of the question and concern and anxiety out when you have a solid plan and you know what you're doing and why. So there's an emotional bias. Mm hmm. So the thing again, it's our most basic instincts. It's that fight or flight. And we've all felt that. Yes. At some point for all different reasons, right? But it's when when that piece of our body takes over that fight or flight, it is really hard to make a rational decision. You know, we're the emotions are so high that we need again, I think it's it's so much more helpful if you can have someone who is outside of that feeling that you're involved in, right, that can say, yes or no, this here's the balance information help you. Yeah, this is not going to lead you to where you're trying to get to or it may, but there's a higher amount of risk or it may, but there's a lot lower risk and then that that brings on another risk that you may not get to your goal, right? So there's all different aspects. But if you understand either the risk or you understand, well, I may get there slower or it might take me longer and you're okay with that, yes, then go right ahead. But I think understanding some of those components and the decisions you're making and the outcomes, right? Yes. The ramifications, I think just can give you more peace in your decisions as well. Right. So there's another, there's another thing to understand, which is the recency bias. Mm hmm. Again, that's something that where we just, we think that things that have happened in the recent past are going to just continue, right? Yes. It's always going to be like that. And whether it was the, well, most recently when COVID hit the, you know, in 2020, just that huge drop off at the beginning of COVID with the market, right, where everything dropped, right? We're like, this is where we live now. Right. I'm, all my money is going to be gone, right? I'm going to lose everything and how many people, and I've talked to people in all different age groups that pulled out at that time. They pulled everything out because they thought that's it. Like I don't want to, if I don't pull out now, I'm going to lose everything. But we've also talked about how, you know, at that time, the way the interest rates dropped and all these other things. And we're like, oh, this is where I live now. I have the, I have the people have set this expectation that they were going to go get a home mortgage. It was going to be 3% like we talked about, you know, on our other shows. Yeah. Nope. Now we're here, but now it doesn't mean we'll be where we are here for every either. Right. Exactly. Right. And when the interest rates in the 80s and 70s and 80s were in those double digits, right? How many people, their first home, maybe it was 18% or more, right? That didn't stick around forever either. Right. And so looking at things overall in perspective and things that, you know, interest rates are starting to trickle down right now. Good for people who want to buy and lend or borrow money, I should say. Not as good for people that are leaning into that fixed side with CDs and money markets, but that's where again, have an overall plan and money markets or CDs still may be a piece of the puzzle for people or with certain buckets of money. It's not a bad place. No. But it may not be the best place for other buckets or where I'm starting now, maybe whatever's there I might just leave and see. Sure. Okay. Fair enough. Right. It just depends. It depends on so many different factors. So again, that recency bias can impact our decision making unless sometimes we have someone that can say, yes, but look at the bigger picture. Right. But look at your timeframe, but look at how you have all this money in other places that you don't need to, right? So it's helping to maybe give some perspective sometimes, hurting bias. Follow the crowd. Right. Sometimes I think with social media and with the news, it might make us feel like everyone's doing this. I'm the only one that's not. I'm the only one that's not. Right. Is that FOMO. So to be able to again, look at, remember, I think a great example, though it's many, many years ago now, but the dot com bubble, that for a time, it was really great. And everyone was putting money into that because they thought, right? Everyone thought that that was, and then this tech thing, this is what I had to do. And so being smart, again, just being smart, being smart about those things, the same thing with crypto. Like we just talked about too. You got to be smart on the areas and the things that you are investing in. Do a lot of research. Look at it, but it is. Right. It's not a regulated sector yet. And if you want to look into things like this is one of the things and I do remind people that you actually, not only are my friend, but you are my advisor, but that's part of it is that if you're curious, like, we're not saying you shouldn't be curious about how some of these things work, but for me, it was put enough money into it to see how it works. And then I, yes, maybe things might work well, but I didn't take out any of my long-term buckets or anything else that was earmarked for things that I needed for my son or something like that and go, this is where it is. Right. And it's good to talk yourself out of it because I probably live in the land of watching what social media influencers do more than a lot of people. So I understand how it can be very, oh, but look what they, oh, look at what their lifestyle is. And you see all these things. And it is very easy to go, I'm doing this wrong. Yeah. Right. Yeah. Or I should have could have woulda. Right. And maybe you look at, I missed out on that trend. So I don't want to miss out on the next one. And I'm going to put it all. I'm going to double down on this. Yes. And it may or may not work out. So again, it's that whole thing, you know, putting too many eggs in one basket, you can look at it in any number of different ways. So there is, there's an ambiguity aversion. Okay. And I think this is, it's, it's that whole uncertainty bias. We fear the unknown. And so I think we would prefer known risks versus unknown risks. Now that is also, I think we're an advisor can come in and explain certain things that maybe you didn't understand. But then say, wow, that is something that would be a good idea for me. Right. So it's one of the, it's just that education piece is so big, I'm big on that. Yes. I want people to have a good understanding and feel confident in the decisions and the things they're moving forward with. Right. So that, those are, there's just, there's so many things that we can, we can try to break it all down into all these little pieces. But I think overall it's just having someone to bounce things off of whatever title you want to call it, right? Whatever category that could fall under in our behavior. It's just having someone to help give you reassurance in one way or another. Well, when we get back, we're going to cover some more of those behaviors that might be affecting you and your finances. We also would love for you to be part of the show. The number is 651-641-071, be right back with a financial health and wealth show with Cassandra Brasia from Avila Wealth here on My Talk 1071. Welcome back to the financial health and wealth show here on My Talk 1071. We do get down here sometimes. That's all good. So we appreciate you out there. So if you're listening to the show, I always want to remind you that you get this episode in previous episodes by going to our website, MyTalk 1071.com, use that keyword health and wealth. We can do that. I think keyword just wealth works for you now. We'll have to try that. We'll have to try it. I will do that after the show. I will. I do want to remind us, before we get into some final things today, you've been doing your community education classes too. There's a couple coming up. Yes, and so this is our baby boomers class, but even if you are not a boomer, if you have a boomer in your life, this might actually be really good for you too, because you can go back and go, "Hey, here's some advice," in case you have like, "Maybe I'm talking from a personal experience," like I couldn't get my mom to go, if I told her to, but I can now drop information that goes, "This is a value to you." You should have gone yourself, but I am your partner. I'm your proxy. I will do that. So there's lots of reasons why people might want to attend. So you're having to come up, or out in the, you said the South Metro, so is a good way can we email you? Should we go on your website? Yeah, if people email, we can get them the information, because it's on the community ed course information, things again, it's probably tricky to find. So I've sent it out to people who have asked for it, and we make sure we get it out to people. Absolutely. So go ahead and do that. It's always great information. They get two hours of information from you, right? That's a lot. That's fantastic. Yeah, it's a lot. There really is a lot. Right. So go ahead and get involved with those community education classes. Yeah, we'd love to see you. So behavioral finance, right? Yes. We have one last segment here. Let's talk a little bit about what everyone, I'm sure, has been thinking about this morning, myopic loss aversion. You know, they were waiting for you to say those words. I know. They're like, they're coming. I know. They had their pen ready. Myopic loss. That's going to be in the show today. For sure. So when we talk about myopic, so very narrow focused, very individual and focused, what are we talking about? Well, here's what it is. Here's what it is. Okay. The concept that the pain of loss of losing money, it's twice that emotionally than the joy of gains. There enough. It's so much more painful to lose than it is for us to get excited about gaining funds, gaining, you know, gaining our, you know, wealth. So there's an unequal proportion, so I may be doing well and gaining it and it feels kind of okay. Yeah, we're happy. That's the most I get. It'll be joyful about it. Yeah. You lose it. I'll be devastated. Whatever amount you lose is, it's twice as painful as let's say a proportionate amount of gain versus a proportionate amount of loss is twice as painful for the loss. So that's, that's what we're talking about there. And so because of that, again, people who have experienced loss and again, maybe it was one of those emotional things where you, you lacked in the loss because it was so painful at that moment and then it made it that much harder to grow it back because you didn't know when to reenter and that stung, right? It's stung that you lost so much. And so one of those things can make people have an aversion to wanting to take on risk again or getting back into the market or in different areas of the market that they feel like could be more risky. So that's, that's the thing. Again, one of those things to understand how do you balance some of the risk out there? How do you, how do you use, how do we leverage technology and things? Yes, because there are ways to do that to really try and minimize risk in general, but still find that balance of where do you, you still want to have gains, right? Absolutely. Almost need. We need gains to reach our financial goals eventually too. Absolutely. Right. And so that it's all, it's just finding that balance. So sometimes if, if, if your stress is too high though and it's impacting your health, there's a few things you can do with your current, what you have is you could dial down the risk and try and look at things that won't fluctuate as much or you, because there are some people I know that they are constantly looking at their money because they're so anxious. No, I'm not saying do not track your money. I think it's important to do that. I do. But I also, if you have an advisor, if you have an advisor or if you don't have an advisor and you're taking on all that pressure and stress yourself and it is impacting your health, that's where maybe having an advisor could help knowing that an advisor is helping you in that area, then you don't have to be as hands on and maybe that can help you to not, to take on a little more risk that's appropriate and then not watch it on a daily basis or feel like you have to. And it's another good example of why we encourage people to find the kind of advisors that communicate with you with the amount of communication that you need and that is important. Right. Or in the way, right? Yeah. The way that you feel comfortable, that you want to be with someone that you feel comfortable asking a question to and reaching out with and that's where, yeah, that's why that's why we do all those 15 minute intro calls. You may enjoy our podcast and our show. I want to make sure that there's a good fit mutually. When we talk before we start down this for most people, it's a long term relationship, right? So that's where those 15 minute intro calls can be really beneficial for people to just to have that confirmation of we're a good fit mutually for us. So the next thing I want to talk about is an anchoring bias. Okay. Where people rely too much on either pre-existing information that they maybe had or maybe what they were first taught about something like if we were, if, if we had someone way back in our lives that said, this is what you're supposed to do and we just always think that's what we're supposed to do. Right. Right. We don't ever look outside that. We don't ever learn anything else. We don't update anything based upon additional information. Sometimes maybe that benefited you. Yes. Other times, but how do you know, right? How do you know if you're one of those cases where that was the right, that was the right information and guidance and that's why I've stuck with it or maybe there were ways you could have direct, redirected slightly here or adjusted there. So it's, I think it's, it's good to look outside of information sometimes or get additional recommendations or insights on things. I love this quote by Benjamin Franklin, the bitterness of poor quality remains long after the sweetness of low prices forgotten. Yeah. Mm hmm. Right. So I see a lot of people that are looking for, well, I just don't want to pay anything or I don't want to have, I want to have the lowest cost possible. I get that. Right. I get that. But if it doesn't end up benefiting you and you end up going, ah, now I have to do all this other as well. Yeah. I think it, unless you're, unless you're in the financial industry and have that team, I think it's almost next to impossible to have all the knowledge of all the different pieces that can play a role into impacting your success with your overall retirement. Yes. So again, I think there are certain areas of our lives where it can make sense to invest in some expertise, whatever that looks like. Um, but I would, I would argue that your retirement might be one of those areas. Maybe you don't need an advisor the whole time or maybe you have someone that you check in with here and there, but, but when it comes time, I would say there's never too late, but getting some of that information can be hugely beneficial. Right. Um, there's a confirmation bias and that's where we're looking for information that supports what our belief is. Right. And then just tell me I'm right. Right. I'm going to, oh, this says I'm right. Yes. I must be right. Right. Right. And we do that in all areas, don't we? Correct. And then a narrative fallacy where we will abandon evidence in favor of a good story. Does it sound? It's that whole thing, right? It's sensationalized. Yes. It sounds great. So it must be a good thing. Looking for that 15 minute console, get on our website, AvilaWelft.com or call us 651-600-0855. Right. You can do that also if they go to AvilaWelft.com, they can go ahead and email you if they want to find out about that community education classes that you have coming up and figure out a way to do that. And again, just reminding everybody that it may sound like a lot of work, but it really isn't. Like you make you and your team do a great job of going, Hey, here's what we start. Here's what we need if we want to move forward and you can help them even decide if it's the right thing for you. So we do the heavy lifting. Yes. So we encourage you to go ahead and contact them again. That's AvilaWelft.com A-B-I-L-A-Welft.com. We'll see you next time. Security and advisory services offered through Harbor Investments Inc. member SIPC. This material is for educational purposes only and is not intended to be financial advice. Please consult a professional on your situation content paid for by AvilaWelft.
