Michael-Yardney_Louise-Bedford_2022

SUMMARY KEYWORDS

people, property, michael, money, trading, traders, life, years, market, share, louise, important, buy, talking, plan, inflation, investors, world, wealth, clients

00:01

Hey, it's Louise Bedford here, the host of TalkingTrading.com.au. I am so excited to bring you every week, the latest about the share market about what, when and where to trade. And this week, I have got a very special guest, Michael Yardney. Now Michael and I have been friends for years and years. Michael has his own podcast. And we're doing a bit of a simulcast. With this, this recording will be available not only on Michael's podcast on my podcast, but also on my YouTube channel youtube.com/tradinggame as a video. So we're very excited about this. Now, the world has been going crazy. We've got huge inflation, we've got interest rates growing, there's a war, there's doom and gloom around the share market and around property. And Michael and I are here to tell you that tough times don't last but tough people do. So I really want you to pay attention to every single word that we have to say to you, there is so many gems that we're going to be able to tweak. And we'll be able to reveal some absolutely fantastic things that you can use in your trading and in your property investing right now. So Michael, welcome to the show. I'm so excited to have you on. For everybody who's not as familiar with you, perhaps you could tell us a little bit about your background, and a little bit about your history.

01:38

Well, I've been investing for close to five decades. Now, Louise, I'm a little bit older than you. And I thought I was really smart. I bought my first investment property in the 1970s. And interestingly, a new Labour government came in just after I bought, the Gough Whitlam government, and inflation rose and in interest rates rose, inflation equity got to around 15% In those days, and no one told me that it wasn't, I didn't have any economic knowledge about it. I just bought close to where I lived and close to where I went to school. But interestingly, inflation made the value of my property go up. At that time I paid my half year we'd have to my parents $18,000, I paid a $2,000 deposit. And from then I've grown a multimillion dollar property portfolio. For the last 20 years or so I've been assisting people from around Australia and my team has now grow, protect and pass on their wealth through strategic property and wealth advice. I've authored nine books to them, translated into a number of foreign languages and become international bestsellers. And I'm still having fun in property helping clients. And like you I enjoyed the podcasts and the videos Louise are fantastic.

02:56

Look, I think that's one of the reasons why we get along so well. A lot of the principles that your people need to apply in property investing need to actually also be applied in the share market in order for us to succeed. Some of my believes

03:11

that least successful business people, entrepreneurs, traders, all share similar traits. They just express them in different forms of business, don't they?

03:20

They do. Yeah, some of my best share traders are actually superb property investors. So Michael, let's cut to the chase here, I want to hear your views. As I mentioned, we have got a pretty much a perfect storm for people to feel fear. And all hell has broken loose in the world. I want to hear your views. What can people do to not only soothe themselves, but how can they handle this in terms of strategies and tactics?

03:50

Well, if you're talking about the current economic circumstances, most people have never experienced inflation, we've had many years of low inflation. So people are getting spooked. And the media is doing a great job at it. But so is the Reserve Bank. Because what's happened is we have now in a period where the Reserve Bank is wanting to dampen demand. So let's go back a step. Inflation is when the value of prices go up. But it's actually more than that. It's actually related to the devaluing of your money so you can't buy as much and we know that when we go to the supermarket or the petrol stations, and it also has to do with the extra money and that's flowing into the economy or has flowed into the economy. So only a couple of years and there was worries about Coronavirus, killing the hundreds of 1000s of people. There was talk about 11, 12, 15% unemployment. There was talk about a property market crash in the stock market crash and so our government went into a system of quantity phasing, which is actually, in essence, putting more money into the system. And they paid it forward. And they gave us money. And they gave us grant. And they stopped all those terrible things happening. But now in some ways, we've got to pay it back. So what's happened is, that period of time when we're stuck in our homes and our COVID cocoons, many of us couldn't spend others have a stash their cash paid for their mortgages, pay down our credit cards. And so we had huge put money in our offset accounts. So we had huge ability now that the world's becoming normal again, to start spending. And we are, some of us think, hey, we deserve it. We've been locked up for a long time. So that's pushing up prices, because there's more demand. But it's a perfect storm in some ways, because unfortunately, there were those terrible things happening overseas, where the war with Ukraine and the lock downs in China creating supply chain issues, food issues, fuel issues, so lack of supply extra demand, prices go up. And now people are saying to the Reserve Bank, how do you get it wrong? How can you get it right? But they did all that they could two years ago, they lowered interest rates to stimulate the economy, they I think, got to stop the stimulation, and in fact, do the opposite, dampened demand. But that's where the issue comes loose. Because if they dampen demand too much, we may go into recession. And that's what a lot of the talk is about. So how, why would they raise that value, the price of your mortgage, my mortgage interest rates, when they're trying to lower inflation. And I guess the thought is that you've got to pay your mortgage, you've got to pay the interest rates. And for that reason, people have a little bit less money in their pocket, it's like taking a pay cut. And so therefore, you spend less. At the same time, there's a lot of media slowing down demand, because consumer confidence drops, you don't spend as much. The problem is, if business confidence drops, Louise, they don't employ as many people, they find it hard to put up prices. So we're getting a perfect storm for a period of quite some months, this is not going to go away for a while yet. And it's not just to do with the war in Ukraine. But the petrol prices, the food shortages, the other shortages haven't flown through into the system yet. So we're going to have a period of high inflation. And unfortunately, for some advice, they prepared high interest rates, and this affecting the stock market, because they're worried about how businesses, the big companies of the world are going to work. And they're worried about the value of the home. So no doubt at the moment, people always are very worried, aren't they?

07:41

They really are in wherever there is fear and volatility in our own emotions, that does translate into the vehicle that we're trading or investing in. You know, I've certainly seen with my traders, they've had to really big careful with their mindsets, so that they can get through this and realize that they do have protective measures in place. So let's talk about some of those protective measures. For my traders, one of the things that I'm suggesting is that they limit their access to the news, the difficulty with hearing all of this important, and getting that onslaught of emotion, sometimes the what that can do is hair trigger you out of positions that were just fine, and that you really should have stayed in. We have our stop losses in share trading to protect us. And we also have the support of our communities, our trading communities, our property investing communities. So rely on that support, rather than getting spooked out of situations where you really should be holding the course. The other aspect, I think that we should consider is calling our own stop loss. So if in the share market, if you've dropped 25% or more, in your total equity, one of the things I would suggest is that you stop entering new positions. Now we know for the traders that are listening to this, that we only want to try it when the markets are going up. So that's my macro filter that I apply. And when we don't have that situation, we sit back. So listen to your rules, you should have a written trading plan. It should be completely mechanical and methodical. And you should be following that to the letter. Michael, what about for your property investors? What should they be doing?

09:37

Well, let's go back a step. We know that fear and greed, drive markets and a couple of weeks years ago, in the booming times of the stock market and the property market, greed drove those markets Fear Of Missing Out particularly the property market today and property is the opposite phobia rather than FOMO. For fear of buying early, maybe in a falling market. In the fear of looking silly, but just like your traders have a trading plan, I always recommend property investors have a strategic property plan so that they don't make their decisions based on emotions. It's just the same in property. And you shouldn't change your long term strategic wealth creation plan because of short term influences. Clearly the stock market is more volatile, more liquid. And so the rules are slightly different there. But I think like you, the first thing is turn off the media and be very, very careful who you listen to, because just look at how all those predictions came out only two years ago, wasn't much more than two years ago, we were told that we were going to have 15% unemployment and the world was going to fall apart. Now sure, they were unusual circumstances, but forecasters tend to get it wrong. But the media loves negative headlines. It's can't get much more headlines on Coronavirus. And unfortunately, the Ukraine war doesn't get the job headlines anymore. So they love doomsayers, because they sound sensible the people that say just stick to a plan and take a long term view and don't get caught up. They don't sound sensible at times like this, do they?

11:19

Absolutely. Today I do feel as well, that when we are caught in that vortex of information and that Onslaught is that we're more likely to say yes to a lot of things because it takes energy to say no. So another thing to consider is to watch where you're spending your energy and your time. If you're getting caught up in all of this. And that you're finding that you're dwelling too much on this negativity, be careful, because there are many different things that are saying in the psychological studies, that the more overwhelmed we become, the more we say yes. So just realize the importance of spending some time alone, being able to have time to meditate, gather your thoughts, write in a journal, all of these are soft skills that we need to recover from situations like this. And even droughts, I'm calling a drought, a time where the money doesn't flow as easily. Let's just define it as that. So if money isn't coming into your household as easily as it was, Michael, what are some of the things that you usually suggest to your investors that want you to do?

12:31

Since the media is likely to keep feeding us headlines of fear for much of this year, I think part of the focus is on educating yourself, because the economy is affected by a whole lot of factors. And most of them are out of your control. So rather than worrying about all these things, you can't control step back, as we've said before, take a long term view and then focus on things you can control, whether it's property shares, Bitcoin, booze don't last forever, and neither do downturns. So think long term don't necessarily look for the quick wins. And don't listen to those negative messages in the media. I agree with you. And as we've said, don't allow the emotional decisions to drive you. But I think it's also worth taking comfort in what happened in 2020. What happened in 2018, I started 2008, during the global financial crisis during those other times as well, this is just part of the cycle. So if you take a loss in the still stock market, on the property market, that's just a fee for entry. That's part of a fee of being there in the long term, not a fine for doing something that you shouldn't have been doing. downturns are just part of the cycle. And they will end at some point. So learn from history and get the right people around you. I think that's one of the things that you said smartly, that if you listen to the wrong people, it just keeps feeding the negativity. So listen to people who've actually had some experience. The challenge at the moment, of course, Louise is that most of the journalists in those therefore who putting the messages out in the media haven't ever lived through these times. And interestingly, most of the commentators ones with all these terrible crack records, they haven't been around long enough either.

14:19

It's true. I mean, it even goes back to way back when the Tulip Boom, Posidon, this is how people go, we was that mania, we love that manic behavior. And then of course, the flip side of that is depression, isn't it? So that's swinging from one to another like a pendulum. That's what we have to guard ourselves against. Not only looking at it from the outside, but coming from within also,

14:50

with property though, Louise if I could just explain because it's a bit different to trading because it's a long term investment. You've got to recognize that these times create tremendous opportunities, the window of opportunity is opening up for smart investors who can take advantage of it. So now's the time if you're in property to buy quality assets, remembering that there are markets within markets. Two years ago, every property went up that Australian residential property market went up $2 trillion in 2021. Alone. So secondary properties, main road properties, and as well as a great properties now there's a flight to quality. So my suggestion is get your finances right. First, I think we're, for everyone, that's important. If you're a homeowner of a variable mortgage, it's actually not a bad idea to speak to your mortgage broker and see if you can refinance, because I know that people are refinancing discounted mortgage rates. And if you can build up a healthy financial buffer, put some money in your offset accounts, just to prepare yourself for a rainy day. If you're for certainty, unfortunately, people have missed the boat in the fixed rate interest loans, which I got it right, I very rarely do early this year. It's not a recommendation to others, it locked in a large portion of my loans on very low fixed interest rates, before it all went up. But I've usually I get it wrong. But maybe if you need certainty, if you've got a home loan, you can actually ask your banker, your broker, you can fix a portion of it if you're wanting that certainty. But fixed rates are now much higher than variable rates and probably too high, in my opinion, to lock in a large portion of your loans. If you're a sell if you're wanting to sell, don't be spooked by the current market. If you've got to sell most sellers or buyers, if you're looking to upgrade to that, right, you buying and selling your property in the same market, it can be different to the trading market of sheer traders. And so therefore, it doesn't matter, especially if you're upgrading if you think you're in a good position, you may get a bit less for your home now, but but you're gonna pay a bit less for the other property. And for investors as I started to say, have a plan, have a strategy, if the time is right for you. If your finances are right, if you've got a secure job, it's a good time to take advantage when you could buy a property without the FOMO without the fear of missing out without the rushed decisions. You can do your due diligence and buy the best asset you can. Louie's offense strategic investors don't get fast with the stages of the cycle. Instead, they just concentrate on doing their own thing growing their portfolio, investing in the right properties, the right shares, when it suits them when it fits in their strategy.

17:44

Yeah, I love that. Actually, from a share trading perspective, one of the aspects that Chris Tatum, my business partner and I continually reinforce, is using an archetype. So an archetype is the perfect trade, the one that you wish every trade looks like. And what you aim to do is you aim to match your new positions to the chart of that archetype. So what it does, it gives you a guideline, a very specific guideline about what you're looking for. So the way I think about it is when I was dating all that time ago, I had a checklist. Yes, I actually did written down on paper about the partner that I wanted to be with. So, you know, that surprised me? Look, honestly, it was a good strategy. It really was. So I knew what I was aiming for. And luckily, I got that. Not not everybody has that checklist in the first place. And then we wonder why we're not happy later. So I'm not saying a checklist will cover you for every situation. But certainly in the share market, and in the property market. If you know what good looks like, you've got a chance of being able to fulfill it in your very next investment. So for me, for example, for those of you that are shares oriented, I'm looking for the overall market to be going up and I call that my macro. And with my archetype, I'm looking for the actual share to be above its 30 week moving average. And I'm looking for a breakout above a line of resistance on heavy relative volume above its own volume moving average. Now, I know I've said a lot of jargon for your property people, they're probably going what, but I want you to know that there is a way to learn this. This is not beyond your capabilities. You have the ability to do property so you can generalize that to another vehicle. And then you've got the best of both worlds. I know with Michael your services, I use your services professionally. We use you to help identify properties, but also to use the property management aspect. So Turning to people who know what they're doing, who had seen those peaks and troughs, those booms and busts, I think is essential.

20:06

I think that's important also, because I know you and Chris Tatum got an amazing track record. We've been friends and professional colleagues for a long, long time. And you've been there for a long time, at the moment, what last year, in the year before, during the booming times, a whole swag of new, let's call them enthusiastic amateurs came out giving people advice on the stock market, on the share market, on trading, and even on property as well. So it'll be interesting to see where they're going to be now in these more challenging times, I think you've got to go with someone who's got a proven track record.

20:42

Yeah, I truly do. And I think it also comes down to some of your own principles and some of your own values. I think knowing what money means to you, knowing how it applies to your life is very, very important. And to pre consider that, regardless of market conditions is absolutely essential. Now, Michael, you and I have spent a long time talking with each other behind the scenes behind closed doors, about money, getting our principles really crystal clear, and being each other's unreasonable friends challenging each other on different aspects of our own psyches. So Michael, perhaps you could define what does money mean to you?

21:26

Well, we I think it means something different to me. I know it means something different to me. When I was young, when I was young, I chased money, I wanted more money. Because I came from a poor background, I saw other people went on holidays, other people had lunch money at school, and I didn't, I had to bring my lunch. And so I chased money for the wrong reasons. For the first a third half of my life, I guess I've learned that money, any problem that money can solve isn't really a problem at all. So money's actually currently give me options. This gives me the lifestyle choices to help my family, my children, my grandchildren, give me the ability to help charities today. And I believe it's important when you get to a particular level of wealth, you should help other people up as well. And I know you do that with your education, and we do we do it through charities. But Luis, it actually took me a long time to realize the true wealth isn't anything about money is what you live with, when they take all your money away. So to meet to be wealthy, different from rich, you need money plus, well, health, we know that gene look over the last couple of years with COVID how important that is no use, being in hospital, if you've got all the money is money. And also, you need somebody to love and somebody to love you. I think to be truly wealthy, you need money in time to be able to enjoy it not the time precious, I also believe it's important to have the ability to grow to learn, you need money plus spirituality. So wealth, different to money comes from all those other things. And money just works in those areas where it's useful.

23:03

I love that. And I think we can lose sight of that, you know, when we do have this time, such as now where things do seem a little bit doomsday ish and the sky is falling in, we forget that we have multiple resources in other areas. So to remind yourself of that, to be grad grateful to have gratitude, even to suggest that for your children. So around the dinner table, my kids know that I'm going to say what was your high for the day? What was your low for the day? And what actually are you grateful for, and we try to name three things, and we choose a different person each night. So it doesn't get boring. But they start to think of that throughout the day just in case I challenge them at night. So I think that there is a hell of a lot of research around that, to know that you are more than just your income. And to realize that, hey, you've probably got friends there that you haven't spoken to for a while you've got your partner there that might be going through some thing, you can actually reach out to others. Because if you extend that hand where you're initiating, that can go very well for you as well because you feel like okay, now I'm getting myself together because I'm helping other people. Take your eyes off yourself, put them on others. Very, very important.

24:25

Louise, I think that you can't be I'm sure you can't be wealthy unless you're grateful. So our kids are no longer at home. But every night before I close my eyes or when I close my eyes and go to sleep, I think of what I'm grateful for for the day and it actually has to be something different to what I thought of the day before. It's something I've learned also. So I'm grateful for my wife, my family, my health, the wealth I've got, but you can't keep saying that every night. You've got to find something new as well going do

24:54

you really do. Actually I'm doing private yoga lessons with my daughter Ha, Ash. And it's fantastic because we really do bond in that session. And at the very end, often the instructor who we've had for the last, you know, couple of years with yoga, she'll say, think of something that you want to thank yourself for a while and think of something that you want to thank somebody else for. And I like that. I like that a lot. You might know that I did a Carter day challenge for myself a few years ago, Michael, where I wrote one card per day, every day for one year. So after the first three months, I ran out of people, because you know, how many people do you actually know. And I started writing cards to random people, people in restaurants who have served me well, people from my past that I hadn't been in touch with teachers from my school that I managed to track down. And that was a wonderful way to be able to make me feel like I was expansive instead of contracting. I think so much of our life, when we're under pressure, we contract and we shrink. Whereas if we can work out ways to grow, that can be part of the solution.

26:15

Well, it also helped other people, I bet you those cards, I know when I received mine, made the other person happy made the other person smile. And when you are generous, and when you do help somebody, it makes you happy. So it's a great way of remaining happy sometimes you're happy for 10 to 15 minutes, sometimes for now, when you get that phone call from somebody saying thank you for the card. But generosity has great benefits for you, as well as for the other person.

26:45

They've even shown with dementia patients that even if that dementia patient doesn't actually even remember you or even remember that you came to visit, their happiness levels are increased by having a visitor. So if you've got somebody in your life that is experiencing that I think a lot of us do these days that don't think that your efforts are wasted, just know within your heart that that is making a difference at some level to that person. Yeah. So Michael, what advice are you giving people right now about trying to maintain their mindset and have resilience?

27:27

Well, resilience is that quality of just continuing on during the challenging times during the difficult times. You've got to some people call it mental toughness. I think that's a term that came from the sports arena. But how are people going to get through all this? I think there's a combination of things, you've got to be self confident, you've got to be comfortable in yourself, you've got to understand what's happening by educating yourself. You got to learn just to control the bits of your life that you can control, be relaxed and comfortable. And turn off, as you said, including whether it's the yoga, the meditation, the exercise for a lot of people doing things that you enjoy. And I believe it's important to hang around the right people. So people who are got mental toughness, people who can get through these challenging times, I found also that the emotionally intelligent they got EQ, as well as I guess, IQ. You can't be mentally tough without the ability to fully understand, tolerate all the negative emotions that are going on, and how to cope with them. I think the other thing is, get rid of toxic people with the moment. Be careful who you hang around, and don't waste your time with people who are bringing you down. Yeah, Louise, just be comfortable with change. Most of us don't like change. But I know mentally tough people. They are flexible, they constantly adapting, they know that the fear of change is going to paralyze them. And it's going to be a major threat to their success or their happiness. So if you see change lurking around the corner, just accept it. Maybe one other thing Learn to say no. Sometimes you don't have to do things if people come to you, if opportunities they I guess with the opportunities. I've actually made more money by things I've said no to the potential opportunities. And then I've said yes to what if you've got the own self confidence, commit to your own way of doing things? Yeah,

29:39

I love it. You know, the other aspects that I've been researching. It was actually written up in the New York Times by Adam Grant, it was an article that totally went viral. It's a concept called languishing when you were saying about paralyzed you know that word is an interesting word, isn't it? I think a lot of us because we've endured a lot of lockdown In a lot of uncertainty that some of us have actually had some genuinely psychological shake ups that we haven't had to experience in the past. Now, this term languishing, when I first read this article, it really made a difference to me because I thought, what I'm going through, and what a lot of us are going through, because I'm speaking from the heart here, it's not burnout. It's not depression, I'm, I'm not really in the point where I'm doing anything that's going to harm myself. I'm not manic, like, What is this feeling? This feeling of blah, that mercy, you know, I don't think I can get out of bed because it's too much effort. Or if I do get out of bed, I'll just do the necessary chores, and then just wait for the night time. Now asking around with my traders, this is quite common at the moment, whenever we have things that we can't control, we do have this potential to language. So I'd like to talk about some of the specifics that the research has really revealed about what we can do to get ourselves out of this languishing state. Michael, have you seen this in any of your property investors?

31:15

Yes, I have. Fortunately, I've been so busy that it hasn't affected me. But I definitely know people who the blight is actually a really good word. It's not depression. But it's just easy not to go out. It's cold, it's wet, it's miserable. Maybe I'll catch Coronavirus. I don't have to do things, it's actually taken away some of the fun in life.

31:38

Yeah, they'd has. That's exactly it, it's taken away some of the fun in life. So we want you to get back to that fun, because it is fun to be had. So I'm going to give you some specifics about how you can do that some of these things sound fairly minor, but I can tell you the impact is huge. So one of these situations that you need to chase is trying to find something that provides that feeling of flow. Now that book by my Haley, I can't pronounce his surname. It's a brilliant book. And it's talking about flow, which is the state that you're in, when everything comes naturally, you're totally absorbed in a project. And time just dissolves. Now, whatever it takes, whether it's pottery, whether it's cleaning your car, if it's something high level, and you enjoy it and you're passionate, passionate about it, you have a chance to be able to enter that flow state. So think back through your life, think about the things that provide that flow state for you. Is it computer programming, I don't know, I don't know, whatever it is, you know what I'm talking about, it's when things just get so absorbing that there could be somebody talking in your left ear, and you're not even going to hear them because you're so involved. So think about what creates flow and chase that flow. Number two, find uninterrupted time. Now there is a lot of green research, if we get out in nature, if we have fresh air around us, not only is it good because of the virus, blah, blah, but from our eyes and everything about our well being by chasing that green outstretched horizon, that look where we can see forever, particularly by the beach, Michael, you're really lucky there, you've got a chance there, because there's a lot of research into blue spaces as well. That is what we need to do find some level of nature with uninterrupted time, somewhere where we can be alone and be alone with our thoughts. Now, if you're getting too much of that, of course, it's a balance. But so many of us are dealing with interruptions from the kids from life. So we need to chase some time where it's just hours. Number three is finding joy in the little things. So that can get back to the gratitude that Michael and I were talking about, but also sharing that joy with somebody special. So we call those in relationships, bids, like come over here and have a look at this. Or did you see that just to be able to spread that joy to your loved one as well. And also, the next one is focusing on a small goal. This is really important because having that achievement that endorphin rush, that will lead you on to larger goals, that next step and then the next step that is really going to help get you out of that languishing state. So that is from the research. That's not just Michael and I pulling these ideas out. This is an extended area for research right now. Michael, what are your thoughts about that?

34:48

I think you've given us some great ideas, but you've got to actually get up in get going and start doing things and push yourself because it's actually too easy to stay that little bit of extra time in bed, or not go out i It's a bit of a nuisance, it's cold, or it's dark early in the morning, I'm not going to go for my walk. So you've got to start with internal motivation, you've got to have a reason for doing it as well. Life is good, the means and millions of people who would trade places with you, and where you are right now. So again, appreciate what you've gotten. This is just one stage, there'll be interesting to look back how history sees these couple of years, the challenges of COVID, the challenges of inflation, but we're still living in the best country in the world. And I would suggest still, in the best time in history, we would have had COVID, 50 years ago, they wouldn't have had the vaccines, many more of us would have died.

35:50

Yeah, it's true. And we wouldn't be able to zoom and keep in contact as easily. I read quite a lot from the 1918 Spanish flu diaries. And I have to say it was just horrendous. So they sent home one month's worth of schoolwork to each of the school children in that time. And of course, by the time they corrected it, because they had to get it back and correct it. I mean times past and there's little kids, right. So we were so lucky in so many ways. And I think that's easy to lose sight of. Yeah. Now, I wanted to also chat with you, Michael, about people moving through different life phases, and potentially considering giving up their key line of employment. We've heard about the great resignation, it's affecting so many people, we've heard about the levels of dissatisfaction, we're currently 63% of people are looking for a new position. My goodness, that's almost record numbers. We've got hospitality and travel where they can't get good people, because the international students aren't here. But also people are becoming very picky about what they're prepared to do, and who they're prepared to hang out with. So this is the area that I want to raise for discussion. I'm curious about your views, when it comes to share trading. I know there are some very specific things I say before people should leave their role. So maybe I'll run through those first, Michael, how about that, and then we can get your views. So one of the things when you're looking Should I quit my job or not, is I always suggest that people bank their primary source of income for at least one year, and share trade on the side of that just to see whether they can provide for their family, whether they can support themselves. In that particular scenario. I think when I first left my job, I had a health issue. My arms didn't move for three years, and I had my back to the wall. It really wasn't a great time for me at all. Luckily, I've regained full use of my arms. But I still have to have a lot of physio, and it has a few other impacts in my life. But at least by having that situation I had hunger. What it didn't do is it didn't make me trade effectively. I would rather you provide for yourself the best possible method to be able to plan and exit, have the money so that you're not undercapitalized and gracefully wind back on your hours and then make an eventual move out. Instead of storming into your boss's office and telling that person to shove it. So. So be careful about what you need here to be able to do this effectively. Think about whether you have sufficient capital, and that one year, we'll be able to give you a clue. But also think about how long you've got to go to school, you're going to have potential health issues, because we know the majority of our money comes into play towards the last 1/3 of our life. So we need that money for health for moving into retirement villages for care. And that is something that's very easy to underestimate when you're in your 30s and 40s and even 50s. So also consider if you're a share trader, do you know how to make money regardless of market conditions? I mean, the market shenanigans right now if you don't know how to make money, if you are only available to make money in a bull market, you are going to suffer you're going to find things there that are going to play with your mind because scared money never wins. And I don't want to see you in that situation. And the other component is Have you spoken to your loved ones have you if you've got a spouse? Have you discussed this with your spouse so that they know what you're thinking of doing? And do you have their blessing because you're going to need their support? Emotionally, if not financially, you give away a lot of things by giving up your role. I always think they snap decisions people make a usually the wrong decisions. Michael, I'd be curious to hear your views and hear how property fits in with that mix when people want to be a full time investor.

40:15

Well, I believe the property investment journey has a number of phases. The first one is educating yourself learning about what to do, then there's an asset accumulation phase, which requires taking on debt as your property portfolio grows. So therefore, you need serviceability, the banks want you to have an income. And unfortunately, share trading or other side hustles aren't seen by the bank is permanent income, consistent income, so you need a real job. And then over the next stage, you slowly lower your loan to value ratios. And eventually you can live off your property portfolio, but it's usually a 20, sometimes 30 year journey. And just to make things clear, if anyone says to you property property only, or share shares only, I'd be also very cautious, not run away. Because I think, to build a level of wealth, you need a combination of assets. So eventually, you should get to the point where you have your own home with no debt so that you can live comfortably, then you need a portfolio that's going to give you income to replace your personal exertion income. And until you're at that point, you shouldn't be leaving the workforce in my opinion. Now, having said that, that income will come from a number of areas, we all have superannuation, there's also your property portfolio, share portfolio, and share trading to supplement that incomes, a great way of doing things. So leaving your job too early doesn't make sense for me is in your if you're in the asset accumulation stage of your life. And Louise, I found a lot of people actually don't want to leave their job, they actually just want to have a choice of working when they want to how they want to and with who they want to. Because otherwise, the days can get pretty boring.

42:07

Yeah, take care can actually that's probably why you and I hang out together a little bit, isn't it, Michael? Because we go Oh, my gosh, it's a long day here. And I think that can be a lovely thing too. But to plan for it is the key here. Now, as you're listening to this interview, have a think about the similarities between Michael and between me, don't think about, okay, you have to be one or the other. As Michael said, I think there are so many more similarities and differences. And think about how you can apply this to your particular investing and your life. Now, Michael, I know we've covered a lot of ground here. We have talked about where we're at in the world right now, some methods that we've been able to use to overcome some of the psychological effects so that we're not buffeted by the world. Is there anything here that you wish that we had have covered that we haven't covered yet?

43:08

I think you've got to be prepared for things to go wrong, things will go wrong. But resilient people mentally tough people that we spoke about a short while ago, they just embrace failure, because they know it's just part of the road to success. No one's ever experienced true success in whatever it is whether it's share trading in business, in property without embracing failure. In fact, I often jokingly say I'm a real success of failure. But I don't dwell on my mistakes. I actually get up one more time. So if you have had challenges, setbacks, whether they're health, whether the business, whether they share trading with a property, don't fixate on your problems that you're facing, that just gets you into a negative spiral negative emotions, and it hinders your performance. Definitely in trading doesn't, Louise, but but also in all areas of your life. So just accept the fact that even if you've got a plan, plan for your plan not to go to plan, and you won't be too disappointed.

44:07

I love it. Now, Michael, could you give us some ideas about your business, how you can help people and how people can stay in touch. And I'll do this same straight after because a lot of our listeners may not have been exposed to your methods before even though you've been a very regular guest on my show, talking and trading.com.au. So I would like to know how that part of it can come together. So the people interested in contacting you. Thank you.

44:39

Well, first of all, we don't sell property. So therefore, we are independent and we give holistic advice. So we have a wealth advisory business, we've got a financial planning business. We start always by putting a plan together for clients, and we bring the future into the present and help them plan to become the person they plan to become. And as In a minute ago, it's not just property. Having said that, then we help them implement that plan through strategic property advice buyer's agency, our property management division that you kindly said that you look after your properties as well, is in a manager's over $2 billion worth of assets for clients. We've been involved in four and a half billion dollars worth of transactions. And my team advise using the the frameworks or strategies I've built up over five decades, we've been helping clients with for over 20 years. So it gives safety in touch challenging times like this. So we give people direction, certainty and outperforming results. Louise, I'm not sure if I told you just recently, our clients results were audited. And they found that our clients are 7.3 times more likely to own six or more investment properties than the average investor. In other words, our clients are 7.3 times more likely than average Australian to be the top 1% of property investors. And that's because of the strategic plan. So just go to metropole.com.au. And if you listen to podcasts, which obviously you do, because you like Louise's podcast, then go to look for the Michael Yardley podcast where twice a week I give some of my thoughts.

46:17

And we'll put all of these links into the show notes as well. And if you're one of Michael's clients, and you have a curiosity of that the share market, come over to my podcast. So talking trading.com.au. And I would love to see you subscribe to that podcast. Each week I interview market leaders I talk and my business partner Chris Tate talks as well, about how you can get the best out of the markets, and what you should trade where you should try to win. And we also aim to have that longevity view, which is something that definitely Michael and I share this long term outlook so that we put money into your pocket and we make it stick. This is not a flash in the pan type of share market program. This is something that is a life journey. And we believe it's the start of a movement. I'm so glad that you're a part of this, Michael, I've so enjoyed spending the time and the years together that we have. If you're a listener right now, have a think about the things that you can implement. Don't let this just slip by, you need to take these action steps and put them into action over the next 48 to 72 hours. Otherwise, it'll just slip back into the ether. And it won't be a value. Any parting words, Michael?

47:40

I just wanted to say thank you very much and there's still great times ahead for us. So the short term challenge is up just part of the cycle.

47:51

Love it. We will see you next week on talking trading and the Michael Yardley podcast chat with you there