Investing in a recession, getting a car loan at 18 & the power of $5 (Investing Q&A)
Apr 29, 2024
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Kate Campbell, financial expert and author, discusses investing in a recession, the impact of getting a car loan at 18, and the power of starting to invest with just $5. The podcast also covers the importance of automated investing, making sound financial choices in youth, and strategies for incremental investing during market volatility.
Investing in recession requires understanding market cycles and company resilience.
Automated investing through regular contributions can lead to long-term wealth accumulation.
Prioritize building an emergency fund before focusing on savings and investments.
Deep dives
Diversified ETF Range by Beatrice
Beatrice offers nearly 100 exchange-traded funds covering sectors, themes, core, and satellite positions. Their range includes the hack ETF for cybersecurity, RBTZ ETF for robotics and AI, and URNM ETF for Uranium. Beatrice provides insights and diverse ETF options for investors to explore.
Investment Lessons from Apple Shares
Investing in Apple shares taught valuable lessons about market cycles, resilience of good companies, and dealing with negative sentiments. Despite market uncertainties, long-term vision and faith in strong companies like Apple can lead to profitable outcomes. Understanding market behaviors and company fundamentals is crucial for successful investing.
The Significance of Automated Investing
Automated investing, such as setting up regular contributions to managed funds or ETFs, can facilitate consistent wealth accumulation over time. The power of automated investing lies in its ability to steadily grow a nest egg without requiring constant decision-making. Dollar cost averaging through automated investing can help investors navigate market fluctuations and benefit from long-term compounding.
Financial Implications of Car Loans
Strategic financial planning and minimizing debts like car loans are essential to avoid financial setbacks. Investing in a reliable vehicle with minimal costs is recommended, especially for young individuals starting their financial journey. Car loans can lead to significant financial burdens, emphasizing the importance of making informed and practical choices in managing transportation expenses.
Prioritizing Emergency Funds, Savings, and Investments
Establishing an emergency fund should take precedence over savings and investments to handle unexpected financial challenges. Building a robust emergency fund ensures financial security and stability before venturing into other financial goals. Gradual allocation of surplus funds towards savings and investments after securing an emergency fund can optimize long-term financial well-being.
Should you pay off debt, build your emergency fund or invest first?
Kate Campbell and Owen Rask answer YOUR questions on this episode of The Australian Finance Podcast. We discuss investing in a recession, getting a car loan at 18, how to invest with just $5 and the investments that taught us the most.
DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser.