Summary

In this conversation, the hosts discuss the impact of hoarding cash and the reasons why people tend to do so. They highlight the fear of loss, lack of financial literacy, and the illusion of safety as common factors. They emphasize the importance of understanding the psychology behind hoarding cash and the need for education and professional advice to make informed financial decisions. The hosts also discuss the difference between saving and investing, and the impact of keeping money in savings accounts or GICs compared to long-term inflation rates. They caution against falling for temporary offers and highlight the need for proper education and research when it comes to financial decisions. The conversation focused on debunking common misconceptions and providing education around financial topics. One key theme was the importance of understanding retail banking and the potential risks associated with joint ownership of assets. The speakers emphasized the need for personalized financial advice and the dangers of following generic advice from banks. They also discussed the benefits of dollar cost averaging and the role of cash in a portfolio. The conversation highlighted the importance of having a well-diversified and well-managed investment portfolio to minimize risk. Lastly, the speakers emphasized the value of working with a trusted advisor and regularly reviewing and adjusting financial goals.

Takeaways

Hoarding cash can have a negative impact on long-term financial planning and retirement goals.

Fear of loss, lack of financial literacy, and the illusion of safety are common reasons why people tend to hoard cash.

It is important to understand the psychology behind hoarding cash and seek education and professional advice to make informed financial decisions.

Saving is for short-term needs, while investing is for long-term needs. It is important to strike a balance between the two and set clear financial goals.

Temporary offers and high-interest rates may not always be beneficial in the long run, and it is important to consider the fine print and potential hidden fees. Beware of generic advice from banks and retail banking. Seek personalized financial advice that considers your specific needs and goals.

Joint ownership of assets can have potential risks and may not always be the best solution. Consider the implications and consult with a financial advisor before making any decisions.

Dollar cost averaging is a strategy that allows for gradual investment over time, reducing the impact of market fluctuations.

Cash has a place in a portfolio and can provide stability and liquidity. It is important to consider the role of cash in your overall investment strategy.

Chapters

00:00 Introduction and Irritation with Hoarding Cash

02:25 Psychology Behind Hoarding Cash

04:19 Impact of Hoarding Cash during Market Volatility

07:13 Impact of COVID on Hoarding Cash

10:22 Difference Between Saving and Investing

11:30 Impact of Cash and GICs on Inflation

24:18 Importance of Education and Seeking Professional Advice

28:08 Challenges with Banking Employees' Knowledge and Advice

28:37 Misinformation from Banks

29:35 The Risks of Joint Ownership

30:14 The Importance of Proper Estate Planning

32:03 Dollar Cost Averaging and the Benefits of Cash

33:28 Overcoming Fear and Misconceptions about Investing

36:31 The Role of Cash in a Portfolio

37:03 The Risks of GICs and Estate Settlement

38:00 The Importance of Liquidity and Access to Capital

40:21 The Complexity and Education of Investing

42:13 Understanding Risk and Loss in a Well-Diversified Portfolio

45:35 The Value of Slow and Steady Investing

47:09 The Importance of Coaching and Behavior in Investing

49:01 The Role of Cash in a Portfolio (Final Thoughts)

49:12 Setting Goals and Educating Yourself

50:02 Monitoring and Adjusting Your Financial Plan

50:32 Contact Information and Conclusion

50:43 Money Minsdet Mastery Intro.mp4