Investing Mistakes with Joy & Kadri
This month, I've got a mixed bag of topics, and I'm tagging in my amazing training team at Financial Gym to help me Gymsplain some of these topics and also give perspective on what they see on a daily basis from clients. I covered investing for an entire month back in November, but that was before we officially launched Financial Gym's investment offering. Since then, my team and I have seen and reviewed hundreds of people's investment portfolios, and we are seeing many common mistakes. I want to make sure that you're not making those yourselves.
Joining me today are Joy Liu and Kadri Augustin, two Financial Gym Trainer Advisers to share some of what they've seen in their client account reviews and some best practices for you to manage your investments in the best way possible so that your investment decisions are bringing you closer to your big goals like financial independence rather than derailing you from reaching those goals.
What are we drinking?
Kadri – Homemade cappuccino
Joy – Iced water
Shannon – Sparking Water
Podcast Notes
Common Investment Mistakes
Investing through Insurance Companies: There are many challenges when people invest through insurance companies. Getting information can be difficult, and transferring accounts is usually a logistical headache by design. Insurance products have lower return rates than other investments.
Assets Not Invested: Many clients mistakenly believe their assets are invested when they are actually just sitting in cash, which leads to missed growth opportunities. This happens with various accounts but is especially common with rollovers.
Lack of Knowledge: Clients often feel ashamed for not being more financially literate, especially when it comes to their investments. A portfolio review is a great opportunity to examine the whole picture and have a professional explain the details.
Fear of wrong decisions: Investing can feel risky, and people are often worried that they will make a wrong or bad decision. That fear keeps people from making choices that would benefit them.
Individual Stock Picking: Picking individual stocks is not the best strategy for most investors. This is because research and monitoring are required to be effective, and most people don't have the time for that work.
Leading with Clarity
Importance of clear goals: Without clear investment goals, it's hard to design a portfolio that supports you. Many people aren't sure what they're investing for outside of retirement.
Investment Strategy: FGAS has noticed that people aged 20-45 are not investing aggressively enough. They are more naturally conservative, often due to a lack of clarity or knowledge about investing.
Fear of Risk: People often feel that investing is risky or that they will lose their money. While the market fluctuates, investing is the only way to beat inflation. If you keep all your money in cash, inflation will beat interest rates.
Emotional Decision-Making: Emotional reactions, like those influenced by political events, can lead to poor investment choices. It's important to have a plan for your investments so you can stay the course through emotionally challenging times.
Timing the market: Investing is a long-term strategy. It is impossible to predict the market, which is why you should not try to time your investments. Only take money out when you have a clear goal for it, not because of outside factors.
The Power of Optimization
Robo-Advisors and Target Date Funds: While these options get the job done, they are limited. There are definitely better ways to optimize, which can make a big difference in returns.
Platform-Agnostic Approach: Financial Gym Advisory Service's approach includes a variety of funds, avoiding the limitations of a single fund family. No one firm is great at everything, which is why diversity is key to FGAS's strategy.
Investment Optimization: Even if you're already investing, there's always room for improvement. A portfolio review can help you assess your current situation and create a plan for the future.
Final Thoughts: Everything in finance is fixable, and the most important thing is to keep investing. However, optimization can make a significant difference in long-term outcomes. A portfolio review with FGAS can ensure you're on the right path.
Takeaway: My biggest takeaway is that we all work hard for our money and it’s challenging for many of us to even save money on a regular basis so given this, we should make our money work hard for us when we do have it and a proper investment allocation is the best way to do that.
Resources Mentioned in the Episode:
Email: advisory@fingyms.com
Random Three Questions
If you were given $20k to travel, where would you go?
What is a show you recommend someone binge?
You have people coming over, what are you making for dinner?
Connect with Kadri and Joy
Meet Kadri Augustin, Certified Trainer Advisor
Meet Joy Liu, Certified Trainer Advisor
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at Shannon@fingyms.com or join the private Martinis and Your Money Facebook Page, and let me know what you want to hear.
As many of you know, other than running this podcast, I’m the founder and CEO of The Financial Gym, and we are celebrating 10 years of this journey. Now more than ever, I see the importance of the work we do every single day. Rising inflation, the return on student loan debt, high-interest rates on loans and mortgages, and volatile stock markets make it a time where, now more than ever, you need a best financial friend to help you make the best choices along the way.
At Financial Gym, you get paired with a Certified Financial Trainer, who we call your BFF. Our team has coached clients through every financial season, whether they were living paycheck to paycheck or headed into Financial Independence and Retirement. As a reminder, we work with individuals, couples, or business owners.
The exciting news of 2024 is that Financial Gym now has a sister company, FG Advisory Services, available for people looking for more traditional financial advisory services like asset management delivered by a team that looks and behaves nothing like a traditional financial advisory services company. We literally have a solution for you, no matter where you’re starting from. So what are you waiting for? Head over to or send friends to financialgym.com to get started today. Our warm-up calls are free of cost and judgment, so you have nothing to lose.