Get REAL about Stock Market Risk

One of the biggest parts of investing that I see STOP more women from getting started is the fear of risk.

The idea that the market might temporarily dip seems so scary, that some don't even start. And instead, money is kept in a savings account gathering dust.

EVEN IF you're in your 30's or 40's, you are - at the very least - at the half way point at the game of life.

We literally have DECADES in front of us...so stop worrying about a temporary market dip or a minor correction. Why? Because that's short term thinking. Not long term planning. It's scarcity mindset vs abundance creation.

Do you know how much you'd end up with if you save $200 a week and invest it over 30 years? $1.4 million. Over 40years it's $3.4 million.

I don't know about you, but I couldn't care less about a tiny market dip when I know I'm ending up with millions down the line.

Tune in to this ep and start thinking differently about risk AND wealth.  

In the words of Warren Buffet, "If you don't find a way to make money in your sleep, you'll work until you die."

Come and join Investing Bootcamp so you can start making money in your sleep.

xo
Simone

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If you want to keep on, earn more and make more money you're in the right place. I've spent over 10 years learning from the most brilliant minds in money, wealth, and investing to take myself from 20 K in debt to a seven figure investment portfolio. Join in. As I share the secrets towards more growth, money investing and ultimately freedom. My name is Simone Masa, Huggins, and welcome to ms. Wealthy's kiss. My money podcast.

Are you scared to invest on the stock market? Are you stopping yourself from actually creating a portfolio? Now you stopping yourself from creating wealth now because you're scared of the risk involved. I am dedicating this episode, took talk specifically about risk and the illusion and the misconceptions around so much of why and what stops women from investing, which is around us. And I know that there are many other things. I know that the stock market can seem intimidating. I know that you don't know who to trust, and I know that it can seem unwelcoming and patronizing and complicated, but what if all of those things went away when you actually start learning? And what if I were to explain to you the reality of the risk of the stock market to actually enable you to see just how lucrative it can be and to see what you're missing out on.

And to help you understand that all of this misconception around risk of the stock market is actually comes down to just not knowing, not having the actual knowledge. So let's talk first about actual risk. There's this idea that if you invest $10,000, you're going to lose it all. I feel like some women think that that is what is going to happen. It almost dramatizes the reality of what is real, like what could actually happen now, could that happen if you invest that 10 grand into one company and that one company went to zero? Well, yes, there is a small percentage chance that that might happen. However, if you actually learn to invest properly, you won't do that. You won't put all of your assets into one cause that's not diversified. So what is the answer? The answer is to create a diversified portfolio, a basket, a collection of different stocks that you have a range so that some perform better than others over time.

And if there are some companies that don't perform, you pull them out, get rid of them and buy something else. Now I know that that's really topline really simple, but what I want to explain to you is this idea that risk and losing everything and not the same thing, just because you put $10,000 into the stock market and into a portfolio, doesn't mean that you'll losing that look, stocks don't plummet over night to zero, there is a graduation, right? It happens over time. So if you've heard these horror stories of how one company went to zero, which I'm going to tell you is really rare. It happened over years, a period of years, in some cases, some, some stocks can drop a significant amount overnight, but they tend to be the riskier ones. And again, this comes down to just learning about them first. Now the, the idea is so much of the focus around risk on the stock market is about the fear around it.

The uncertainty around it, the lack of control around it when actually the focus should be on how the stock market has performed over the last 30 to 40 years. And so I'm going to tell you, the stock market is actually on average returned about nine to 10%, depending on the year and the country that you look at it's in that kind of range. So if you're looking at historical averages of proof of what's happened, that is the return that you can, you know, roughly expect. Cause you're investing in companies that are here for the long term, they're built on infrastructure and products and services that serve the global community. They're not going to disappear overnight. So when you think about historically how we've grown, we need to remember that the focus needs to be on how it's performed rather than focusing on this idea of something that may not even happen.

Because if your focus is on the risk, and if you have this deep fear around the possibility of some of your stock portfolio, reducing in value for a short period of time, you're focusing on the wrong thing. Because if that is what your focus is, you are not focusing on building wealth long term. This is not getting rich quick tomorrow. You're not going to make a million dollars tomorrow, okay? But if you actually focus and properly, invest over time, continue to put money in, continue to use dollar cost averaging, which is literally, let me simply explain that is simply you continuously putting money in means that you get an average of the stock market as it performs over time. So if you put money in whilst the stock market is going down, then that value might drop slightly. But then if you put money in again in the next quarter, and that's when the stock market is down, then you profit from when the stock market starts going up again with the money you just put in.

Then when you put money again in the next quarter and the stock market keeps going up, then you've put in money three times for three quarters. And all of that money combined is going up together. So you're making an interest on that money that you continuously put in. So investing is not a onetime thing. And this is part of what I see. So many were women particularly stressing about this risk of, Oh my God, I'm going to lose some money. A it's a short term view because you are not investing for one year or two years. Okay? If you are, if you think that this is that's the idea and that's what you'll be doing then in investing in the stock market has not for you. Investing in property is not for you. If it's a one to two year thing, then you need to be focusing on things like a savings account, which you might get one to 2% interest if you're lucky.

So, so one, it's the focus around timing too. I need to be real with you. You don't know what is going to happen to the dust, to the stock market, nor do I, nor does anyone else. And if anyone else tells you what they think is going to happen, run a mile away from them, please, honestly, you need to let go of this idea of control and this idea of certainty, no one has control over anything. Literally anything in life control is truly an illusion. So I need you to get this idea out of your head that you know, what is going to happen tomorrow, because if you're spending your time worrying about the risk, you're under the illusion of thinking that you know, what's going to happen. So focus, certainty. And then the other one I want to talk to you about is your long term vision, your long term goal.

Like I said, investing is not for the short term. So if you're worried about the risk for the next one to two years, then investing is not for you. But if you focus on the next five to 10 to 20 to 30, then you can focusing on, you can focus on, okay, what has happened in the past? The reality is my money will double to triple, to quadruple over a period of time, over 20, 30, whatever years, if you're 30, now you have 30 to 40 years before you even need to worry about that money. And if you want to take it out sooner than fine, if you're 40, you still have 20 to 30 years before you need to even worry about touching it. If you want to retire earlier, say you're 30 and you want to retire at 50 instead of 70 then, okay, let's put in a plan for you to hit that in 20 years, but it's still 20 years away.

Even if you're 40 and you're wanting to retire in 10 years time when you're 50, that's still 10 years away. Guys, stop worrying about a temporary market dip and start focusing on your long term future your longterm goals. And I'm just going to touch on that for a minute, because if you're not clear on what your goals are and your big why, and you're not connected to what that means for you, the reality is there was no reason for you to focus on taking control of your money or focus on working towards those goals that ain't gonna get you there or focus on, on building, building wealth, to create that vision for yourself that you have in your mind. So you need to get clear on what the goal is because investing just for the sake of investing is, is, is pointless. If you're doing it for FOMO or if you're doing it because your uncle told you, it's a good idea.

That's not a reason. Focus on what you're creating in the next five, 10, 20 years, and put in a plan to continuously put money into that so that you can grow it over time. So here's the thing. Most people overestimate what they can achieve in one year and underestimate what they can achieve in 10. Let me say that again, most people overestimate what you can achieve in one year and underestimate what you can achieve in 10. So if you're thinking, Hey, I, I would barely even be able to pull together, you know, a few thousand dollars and that's really not going to grow much over 10 years. What if I were to tell you that if you just continuously put money in over 10 years, you can grow that to hundreds of thousands of dollars for real you guys. I am not kidding here based on history.

If you were to put in a thousand dollars now and you continuously invest, let's just say $500 a month, that's a little over a hundred dollars a week and you continuously put that into your portfolio. And let's just say, we take the percentage that we've got in the past of 9%. In 10 years time, you've got a hundred grand, literally like you can put yourself on the path now to creating that. And in 20 years time, if you continue to do that, you have over $330,000 starting with a thousand and putting in a hundred a week. Like you guys, honestly, what I hate seeing is risk fear, stopping women from taking action, stopping women from building wealth and creating financial abundance and creating financial freedom. It drives me absolutely crazy. I want to tell you a really quick story. This week alone. I had a conversation with one of my investing bootcamp members.

And before I got on the call, I was kind of thinking about the portfolio would be doing for her based on her age. I was just guessing that her risk tolerance would be lower. So she has just hit the 60, 60 Mark, right? We got on the call and she just blew my mind away. She was talking about how she's creating this vision for herself. She's like really focused on her goals and she saw and understood that she is creating something for the next 10 to 15 years. You guys, she's 60. Like, and most of the women that are 30 or 40 calming to me, I still scared and worried about then that's the next like two to three years. You're not even at the 50 Mark, you know, and even at the 60 Mark, and even if you're at 60, you still have 10 to 15 years before you even need to worry about touching that.

I need you to understand that this is a long term game. And I learned so much from that conversation from my investing boot camp member of like me not assuming that just because it's, you know, someone is in the older part of her life, the second or third quarter part of her life that she is somehow, you know, needing to reduce her risk. And she's totally right. 15 years is an amazing time frame for you to look at and get serious about building an incredible portfolio. Like if you're 30 or 40, you have to realize you have like 20 to 30 years on her. Like stop keeping yourself stuck, where you are right now and start creating it. Now, honestly, the best time to invest was yesterday. If you're not doing that already, then the best time is today. Do not let the fear of risk and the illusion of control and the illusion that you're going to lose everything.

And this idea of focusing on the wrong thing and focusing on short term to stop you from actually getting ahead, because I'm telling you in five years time, or in 10 years time, you're going to wish you started in 10 years time. You wish you started the hundred grand portfolio that you could have had by then. So I want you to put these fears aside, come and join investing bootcamp and common learn from me and the other women come and get the proper knowledge and start taking action. Now get the accountability that you need, like get the proper insights and start doing it. Now you guys like you have all of these years ahead of you. And I hope that I have shown you that you are literally missing out on hundreds of thousands of dollars by waiting years to do it. Okay. Now that I've got that venting rant off of my chest, any questions hit me up, you know what to find me on Instagram, DMA, and I'm on Facebook. I hope to get your questions. And I hope that this has actually inspired you. And given you the kick up the butt that I know you need to actually do something today. All right, girls, until next time see you then.