Ep 348 - How News Can Wreck your Retirement

Foreign.

Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of our.

Podcast, which is called Freedom through passive Income.

That's right, and welcome to another episode. And this episode is, is entitled how news can wreck your retirement.

That's right. This is a good one. So it's a, it's a. There's a theme going on this week that it's like just a variation on a theme. We're talking a lot about a lot of the same things because we're planning for this new year. We know the types of funds that we're creating in order to help people diversify and put their money into certain buckets. And so this news thing came up because of the environment that we're in. Right. And the conversations that we're having with investors right now of, I don't, I don't know what's going on in this market. I don't know what should I should do. I don't know if I should sit on my money. We've actually talked as a team about for all the investors that are investing with us right now. We're going to do like, you know, get them on a call just like you are right now, and we're going to say, hey, Flip, so you just invested in this, you know, deal that we are doing and understanding the market conditions and what we're going into. Why did you feel strongly about investing during this time and letting them answer the question? Because there's a lot of investors without the fear of investing during this time. And it's because they've experienced the ups and downs of the cycles and they understand their investment is for the long term and they've done the research and they've done all the work to know the types of assets that they want to be investing in. So there's this group of people that are like, no problem, I'm investing. And then there's this other group of people that we're trying to educate that are like, ah, ah, the sky's falling and we want to help the people that. That's where the sky is falling. Right. And I think news is a big part of that. And so, Flip, I'm going to let you kind of talk about us and in our viewpoint of news and, you know, you're feeling about the emotions and, and the mindset that that creates when you hear things that, you know, is, is talked about on tv.

Yeah, it's. I mean, well, we don't watch news.

That's right.

Watching news Excuse me. We stopped watching news a long time.

Ago.

You know, because it's, It's. Oh, it's. It's. Well, it's negative and fear drives ratings.

Yep.

You know, and so everything could be going great in the world, but the news is going to be a half an hour of all the crap that's going wrong.

Yeah.

And you're going to be like, oh no, all that's going wrong. Well, I need to, I need to do this and I need to, I need to change everything because they're saying all this over here and meanwhile everything's going great.

Yeah.

You know, and I'm sorry, that's a very broad brush stroke. But it's, you know, this. I just, it, it got comical after a while of watching the news. You know, it just like it's not even, even I laugh about it because I'll go on Facebook on my phone and there's a little news button and I don't click on that news button to get the news. I actually click in the news button to actually to. For comedy because the, the titles, you know, or the headlines of these news articles are so misleading that it's comical.

Yeah. I.

More humor in that than actually Facebook thread. So. So. But I don't even use it for news. I mean, there was a couple times where I actually got actually some valuable information of it, but that stopped a long time ago. So it's horrible. It's just horrible that they will write whatever they need to write to get you to listen and to get you to read their articles.

Yes. And the interesting thing to me, the more and more I have, we have stopped watching the news and I personally have stopped consuming so much social media because there's two you can. On social media, you can be a creator or a consumer. And I have been both a lot between creator and consumer. I think you've been we creator and a we consumer. Like you're just not big on social media. But we, we will both find ourselves scrolling, you know, you know, at certain times of the day when we say we need a mind break. And it's just crazy how that's not really a mind break. But, but it, when, when you are consuming that type of information, if, if you go out in the world and you actually just pay attention, it is interesting to see the exact opposite, you know, of the doom and gloom of the fear, the everything that they are portraying. You go out, there's people with just the biggest hearts and they are trying to help others. They're giving money to you. Know, causes they're being, you know, polite and respectable in terms of, hey, you can go here. Hey, you know, they're not in this big rush and they're not big mean jerks. And like they, the world is a really great place to live in and there's really great people in the world doing good things. More so than probably people even realize if they're not getting out and paying attention. And you could be getting out and just not paying attention. But if you start paying attention, you start seeing way more good than you do bad. But if you're allowing the news to consume you. So that's one part of this topic, right? The other part of this topic is that news can drive investments down. If you're an investor in the stock market, you have probably experienced something happening within a company that drove the stock down, right? It just freaking crashed. And it's because you don't even have the inside details. You just heard the CEO got fired, you know, or let's just take Disney for example, right? The CEO just got replaced. And so when people heard that if there was fear, it might have, you know, driven stocks down, I think for the most part, people who know that CEO change was for the better. So it might, I didn't watch it, but it might have like, you know, it might have like actually let stocks rise. But my point is, stocks is one of those things that is very highly affected by news and news can totally wipe you out, right? 2008, when all of that happened, everybody got fearful and everybody started. And it was the market, right? Something happened in the market and they started pulling their money out of every liquid investment that they could possibly could, and things started, started crashing. Compare that to real estate, right? And when you have illiquidity, right? When you put your money in something for the long term and you know that that's the right thing to do and to leave it alone in times of crisis, no matter what's going on in the world, you just leave it and you let it grow and you let it ride through the down because you know that you put that money in because you didn't need it, right? It was an investment and it was for the long term. And even if things go crazy and suddenly you do need it, you can always find more money, right? You can always find another solution and it's always better to find that secondary solution. There is always another way to go. I can gain more money this way and I don't have to take it out of my long term bucket of that. I'm building for retirement because the last thing I want to do is be one of those people that doesn't have enough money to live through retirement and has to work at Walmart as a greeter because I've got nothing else to do and I need a paycheck to be able to feed myself or I have to move in with my family. We've had these discussions lots and lots of times. So really what this episode was about is the consumption of news and how bad it is for you. The reality that the world is a really good place, it's full of good people and full of great opportunity. And it's finding that your tribe that you want to be beside and you want to invest and grow with through your lifetime. And that if you invest in things like the stock market and things that are illiquid, just know that something completely and totally out of your control can, you know, make the stock market dive and completely ruin, you know, it could wipe out your savings. Right. For retirement as opposed to other investments who may be. Who may be safer and not be. Not fluctuate because a CEO is replaced. Right. Like property value is a standalone measure and it has the added value of providing shelter. It's not like we're going to not need shelter in the future. That's always going to be a thing. And as generations continue to change, the current generation doesn't find value in owning a home. What does that do for us who own properties that rented out to other people? It makes our properties more valuable. Right. Because there's more people seeking our shelter. So I just think it's really important that you think about that when it comes to investing about your portfolios, that you don't leave your retirement account left to emotion. And you just, you go to bed with that peace of mind that your investments are not exposed to these kinds of discussions. Right. And that you're not worried about a piece of news completely wiping you out. That's. Yeah, that's really what I wanted to kind of talk about today. Yeah. That. That's. That's all I got. Flippy.

Yeah. The other thing that one of the notes that I know that you have and you talked about it just briefly, but was, you know, the, the news can get. Make people nervous and stock prices down, but that never affects rents.

Yeah.

Because even, even during COVID you know, that was new to everybody. Nobody's gone through a pandemic, at least not that, you know. And so it was. But still, you know, and we were fearful that the 500 doors that IPM has would nobody would pay their rent, whereas it was a very small percentage that actually didn't pay their rent. Everybody still paid their rent, you know, and so talk about it, you know, here's the pandemic where everything just went Helena hand basket, you know, and, but still people are paying the rent, you know, and so talk about a, a great investment. That's why we always talk about that, because that was, that was the eye opener for me.

Yeah. Yeah, for sure. Love it.

Yeah. Well, we hope that you enjoyed this episode. Make sure you head on over to our website, freedomcapitalinvestments.com to join the investor club. We've got lots of stuff going on, so make sure you're talking to Ben and or CJ to find out more about the investor club and find out about all the stuff we've going on. But we like to end all of our episodes with invest Smart, Live happy. Bye, everybody. Nothing on the show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on the show are not guaranteed. All investment strategies have the potential for profit and loss.