Ep 97 | Understanding Behaviors for Investing and Financial Success

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Wealthy After 40: Retirement Planning and Budgeting for Gen X 28 min 2 speakers 8 chapters transcribed 1 month ago
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What is the main topic discussed in this episode?

Dalene (Dalene Higgins) 0:00
In today's episode, we're diving into the psychology of smart investing with independent financial advisor Rick Salmaran. We'll explore how mastering behavioral strategies can help you overcome fear, stay disciplined, and make better financial decisions for long-term success. Rick shares powerful insights on building a solid financial foundation, understanding tax strategies, and reassessing spending habits to unlock more savings. If you're ready to take control of your financial future and build a plan that aligns with your retirement goals, this episode is for you. Welcome to Wealthy After 40, where I help you turn retirement uncertainty into a clear, actionable plan. If you're thinking about retirement but feel unsure whether it's even possible, I understand.
Dalene (Dalene Higgins) 0:54
The gap between where you are now and where you want to be can feel overwhelming, but it doesn't have to. Hi, I'm Dailene Higgins, founder of Elevate Finances and your personal financial coach. Having retired at the age of 50 and have enjoyed over two years of retirement bliss, I'm here to help you create your retirement dream and make it a reality. No more wondering, no more guessing, just taking action and building a future for yourself. Join me each week as I guide you through essential topics such as budgeting, cash flow, lifestyle planning, debt and savings, insurance, Medicare, and social security. Together, we'll build a strategy to help you achieve the retirement you've always desired.

Who is Rick and why does behavioral investing matter for retirement planning?

Dalene (Dalene Higgins) 1:43
It's time to shift from uncertain to unstoppable and make your retirement dreams a reality. Rick, thank you for being here. I'm excited to have you on the podcast to help listeners become masters of behavioral investing. But before we dive into the subject, tell us a little bit about yourself and what sparks your passion.
Rick Salmaron 2:09
I am an independent financial advisor here in Dallas, Texas. I've been in the business for a very long time. I do not claim to know everything. However, I do know a lot and I'm happy and proud and really it turns me on. It kind of lights up a flips a switch inside me to help people shine lights in this black box of area called their money that they may not be able to see. And when people can see that, we're all living with blinders in our eyes.

What is behavioral investing and why is behavior more important than picking investments?

Rick Salmaron 2:39
I mean, me included and other aspects of our life. And when we're able to kind of open and expand the spectrum of what's possible, we can make better decisions. We can make better decisions with our money. And when we make better decisions with our money, our money is headed in a direction that's more towards our future and not somebody else's. So... I've been doing this for a long time, and I love helping and supporting people with this very, very important critical aspect of their lives.
Dalene (Dalene Higgins) 3:07
I love serving people as well and getting them excited about the little area I do. And then I do as well. I always look for other people to support me in the areas I don't know very well. So I think it's very important you said that. So we're talking about behavioral investing, right? And investing is foreign, as you've already alluded to, and scary to many individuals. And so they begin to form their beliefs centered around headlines, the stories they're shared from family, friends, co-workers. So what do individuals truly need to know about investing?
Rick Salmaron 3:44
When it comes to long-term investing, it may sound strange. However, the key to any successful long-term investment strategy or long-term results with a long-term investing path is not investment selection. That doesn't mean it's not important. It is important. We mustn't forget and ignore that part. However, I would argue that 90% of it happens after that, and that's our behavior. The actions that we take or we don't take, once we have a plan in place, is what will translate into the results in our life, how large our retirement pot of gold will look like, what our balance sheet would look like, what our debt looks like, what our retirement goals look like, et cetera, is all really down to our behavior.
Rick Salmaron 4:42
And when people realize this and recognize this, it should be so...

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