Libsyn Directory

107: The Key to Consistency in Investing

Release Date: 05/05/2020

MINISODE: Hurricane Hiatus - An Update on the Wealth by Design Podcast

Wealth by Design

Hello, loyal listeners! We wanted to let you know that we have a quick update on the podcast and a few things that are happening over at Toujours Planning right now. As you may know, we are a Lake Charles-based business and family, and our community, homes, and offices were devastated by Hurricane Laura in August.

MINISODE: Do You Need a Financial Advisor or a Certified Financial Planner™?

Wealth by Design

Do you need a financial planner? A financial advisor? An investment professional? A money coach? And what are those initials after their names?!

MINISODE: Are You Falling into This Stock Market Trap?

Wealth by Design

In this minisode, Dustin breaks down the Sir Templeton’s quote: “Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.”. He also discusses timing the stock market, why it’s a bad idea, and what you should do instead.

MINISODE: Should You Have a Joint Account with Your Partner?

Wealth by Design

We’ll keep the intrigue to a minimum. In our opinion, the answer to this question is a resounding yes. Sharing your finances with your partner builds trust. Keeping them separate can breed suspicion and worry.

MINISODE: When Stock Markets Dip and Bounce Back

Wealth by Design

In this minisode, Dustin recaps what a stock actually is and how stocks are bought and sold. He discusses how people’s emotions cause those peaks and valleys in the stock market, and how you can avoid that dangerous herd mentality when it comes to your own investing.

112: Growing a Business & Wealth with Katell and Jon of Reverielane

Wealth by Design

Katell and Jon, a husband and wife design team, are founders of Reverielane, a purpose-driven brand and web design firm.

[Summer Remix] 102: Net Worth is King

Wealth by Design

We talk about fear a lot on our podcast. Fear is natural and, TBH, necessary. But fear can also make you focus on the wrong thing when it comes to your net worth. Paying down debt rather than building up your assets, to be specific. And that’s what we discuss in this week’s episode: where our fear of the “debt boogeyman” comes from, our three-step strategy on how to overcome it, and what part of your finances you should be focusing on instead.

[Summer Remix] 101: Robo-advisors: Your New Best Friend or Your Worst Enemy?

Wealth by Design

The robots have taken over. Just kidding. But, they have taken over a major chunk of the financial industry in the form of robo-advisors. But the truth is, we think robo-advisors are actually pretty useful. Of course, there’s a time and a place to use them, which is exactly what we cover in this episode of Wealth by Design.

[Summer Remix] 100: High Yield Savings vs. Stocks: Who Wins?

Wealth by Design

There are a lot of misconceptions about investing in the stock market, thanks to fear-mongering in the news, horror stories from family and friends, and a lack of education about the stock market in general. Your fears may also be why high yield savings seems like the better option for your money. In this episode, we talked about the differences between high yield savings and stocks. We know you’re probably a big fan of saving because it’s “safe,” right? Well, we’re about to rock your world.

[Summer Remix] 98: Leaving Behind the “Punch Clock” Mindset

Wealth by Design

The concept of a punch clock — punching in to start a shift and punching out when it ends — is ingrained in many of us, even as business owners who write our own checks and make our own schedules. But it doesn’t have to stay that way! On this episode of Wealth By Design, we talk about how you can start changing your mindset and your life right now.

More Episodes

Dollar-cost averaging. It’s probably the most boring financial term ever. (We’re working on coming up with a new term. Anyone have any ideas? Anyone?)

Snooze-inducing as it sounds, dollar-cost averaging is a super important technique that everyone should be using to invest. Why? Read on.

WHAT YOU’LL LEARN

[01:55] What dollar-cost averaging means
[03:30] Why timing the market doesn’t work
[04:24] The key to investing: don’t think about it
[05:20] Some musings on stock market fear
[08:14] Bring on the volatility!
[09:34] Start low and stick to it

Timing the market doesn’t work

Brace yourself: we get topical in this episode. How could we not? Unless you’ve been living under a rock, you’ve probably been bombarded with minute-by-minute updates on COVID-19, aka coronavirus. Warnings against travel. The number of cases in the United States and worldwide. The number of deaths from coronavirus. And its impact on the stock market.

There’s nothing wrong with staying up-to-date on important news — and we’re huge believers in washing your hands to prevent germs from spreading — but the point is, staying glued to the media 24/7 is not healthy, especially for your financial strategy. This kind of media consumption can trick you into thinking that the perfect time to invest is always just around the corner. “Well, if the stock market is down right now thanks to the coronavirus, it’ll go much lower soon! Then I’ll jump in and invest!”

Trying to time the market doesn’t work, folks. As Danielle said in this episode, you can always come up with a reason to wait to invest, whether the market is high or low. Rather than overthinking your investment strategy, or trying to find the “perfect” time to start investing, you need a consistent strategy that will weather the ups and downs of the market. That’s what dollar-cost averaging does for you.

Why dollar-cost averaging works

If you need a refresher on what dollar-cost averaging is, here you go: you invest the same amount of money each month, no matter what the market is doing. That’s really all there is to it! Essentially, dollar-cost averaging makes you buy less when the market is higher, and buy more when the market is lower, as Dustin put it. That’s the best way to invest. And it works best when the market does fluctuate a lot.

Ready to get started? Then stick with a low dollar amount. Figure out what your budget will allow and automate it with your bank so you don’t have to worry about it. From there, increase your monthly purchase amount when you can afford to. This kind of commitment to investing will pay off for you now, and especially for your future self.

Another note: don’t check your accounts daily. Especially when the markets are volatile. Just trust us on this one.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

RESOURCES & PEOPLE MENTIONED

NerdWallet’s definition of dollar-cost averaging
More on dollar-cost averaging in Episode 17
Stock market fear in Episode 104
The bucket strategy in Episode 4
Schedule a free call with us — Are we a good fit for your financial planning needs?
The Toujours Planning Blueprint to Wealth + Security

WHAT YOU’LL LEARN

Timing the market doesn’t work

Why dollar-cost averaging works

RESOURCES & PEOPLE MENTIONED

Connect With Danielle and Dustin

TOPICS