Ep 27: Q&A Quickie: Investing at 40, Social Security and Money Mindset

Jess: You're listening to Market MakeHer, the self-directed investing education podcast that demystifies the stock market from her perspective.

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Jessie: Today's question comes from TikTok.

Jess: Spacey on our TikTok asked, tell me starting right before my 40th birthday is going to be fine.

Jessie: Insinuating that they have not started investing yet close to the age of 40.

Jess: So what should they do? All right.

Jessie: Love this question.

Jess: We don't tell people how old we are and we're not because that's rude.

Jessie: I'm 413 and we've been investing a long time ago.

Jess: Getting a real late start.

Jessie: So I understand, Spacey.

Jess: But I have a 13 year old and let you deduce that.

Jessie: Anyway, starting right before you're 40 is your cusp.

Jess: So there's some great news there.

Jessie: And you also might have already started and didn't even know it.

Jess: So I've got a lot of good news, but I also, of course, have some bad news because time in the market is so, so important and missing out on some time could hurt you.

Jessie: You may not have invested yet because you're scared of the risk that's there.

Jess: That's very common.

Jessie: I feel like especially with that age, what generation would that be? That's still millennial.

Jess: We're still millennial.

Jessie: Yeah.

Jess: Don't give it away, Jessie.

Jessie: That's where you come from, that generation where you parent, at least my parents were like investor real estate, investor real estate, stock market is risky, dah, dah, dah.

Jess: It's because they experienced the 2009 great financial crisis.

Jessie: And that is kind of scary.

Jess: We kind of experienced it with them.

Jessie: Like we had to like watch them talk about losing all their money and everything.

Jess: Yeah.

Jessie: Exactly.

Jess: Which would have, it would have came back and then some, but nonetheless, I digress.

Jessie: That means though there could have been this fear in investing, but if you're just on that cusp of 40, that's like your last starting point, but you will have to be a little more growth oriented and a little more aggressive and you may have to save more, which means if you didn't invest because you're afraid of risk, remember we say investing is like stepping on the rollercoaster, you're going to have to get on a little more tech heavy rollercoaster.

Jess: So yes, you got to strap in buttercup.

Jessie: I mean, I, yeah, I can definitely see how it can be a little more intimidating, but again, like time in the market, you still have got plenty of time, hopefully only 25 more working years.

Jess: I mean, some of us might have to work longer, hopefully not, but yeah, like you, you still got a good amount of time left to have that money.

Jessie: Keep investing.

Jess: So.

Jessie: Absolutely.

Jess: Better start.

Jessie: It's like, yeah, you're still starting late, but better late than never.

Jess: Like.

Jessie: Exactly.

Jess: You got to do something.

Jessie: You got to start somewhere.

Jess: But right before your 40th birthday, you've got 25 years you're going to be.

Jessie: That's time.

Jess: And that's great news.

Jessie: And just focus on cutting down expenses and investing as much as possible.

Jess: Now, if you're over 40, this is where you have to really focus on reducing your expenses and maxing out as much as you can save, because you want to avoid having to work longer.

Jessie: And when you're over 40, you're getting to that place where you might have to work a little bit longer if you haven't started saving.

Jess: But you might have already saved and didn't even realize it.

Jessie: Because if you're in that over 40 range, you were in the era of invest in real estate.

Jess: And if you bought a house, guess what? That's an investment with a lot of equity.

Jessie: So at that point, you could downgrade.

Jess: And that is still a means of growing your wealth.

Jessie: So it may not be in a tax sheltered account, but it's still money you made.

Jess: Yeah.

Jessie: So don't fret there.

Jess: Number two, and I think the most overlooked, if you paid into Social Security and if you have a job, you did, that's inflation adjusted when you retire, and you'll still get money from that.

Jessie: And we'll have an episode on what's your number and how to figure that out.

Jess: But you might already have Social Security, which means you have been saving.

Jessie: The government had forced that upon you because you were working.

Jess: And you'd be surprised what that number is.

Jessie: It actually could be really, really, really good.

Jess: Yeah.

Jessie: There's a calculator we talked about for that.

Jess: That we'll have to go over at some point, because I haven't looked at that in a really long time.

Jessie: I remember seeing it a long, long time ago and not even sure right now what even my number would be for Social Security.

Jess: So there's a tool that you can look at.

Jessie: There's a tool.

Jess: It's a tool for everything.

Jessie: Socialsecurity.gov or SSA.gov or whatever.

Jess: But we'll go over that at some point, because yeah.

Jessie: That should give you a little bit, I don't know, of a better feeling.

Jess: You do have something there most likely.

Jessie: Yeah.

Jess: You most likely are not starting from zero, which is great.

Jessie: Which is great.

Jess: And don't forget about inheritance.

Jessie: Not everybody has the luxury of that.

Jess: But that also is a means for you to retire.

Jessie: Not everybody's here forever.

Jess: Yeah.

Jessie: It's morbid.

Jess: It is.

Jessie: It's morbid.

Jess: You know, death and taxes.

Jessie: Yes.

Jess: Yeah.

Jessie: When you need it.

Jess: You know, that brings up such another point, a really good point as well, is your personality and your relationship with money.

Jessie: We have to have an episode on that, because people are so different.

Jess: And that's what makes us so unique.

Jessie: We all grew up different.

Jess: Our parents or caretakers had their own issues or non-issues with money that they could have passed down onto us.

Jessie: People have money trauma.

Jess: People have that scarcity mindset, because you didn't grow up with a lot.

Jessie: So you're afraid to lose money, because you never really had a lot.

Jess: There's a lot of things that contribute into it.

Jessie: Or maybe you didn't have to worry about anything your whole life, and everything was provided for you.

Jess: Or maybe you're on your own, and you're having a hard time keeping yourself in check.

Jessie: You're just spending money on everything and not realizing that you're racking up a bunch of debt.

Jess: So it can go either way.

Jessie: I mean, there's a lot to think about.

Jess: Definitely worth a whole episode.

Jessie: I know for me, I start getting stressed or overwhelmed with money, and I put on those money manifestation or money mindset meditations to help me get out of that rut and be able to focus logically instead of emotionally.

Jess: We don't want to be emotional with our money.

Jessie: We want to try to be as logical as possible, and it's hard to get yourself there sometimes.

Jess: It is.

Jessie: It is.

Jess: Yes.

Jessie: I think that's a good...

Jess: Yeah.

Jessie: We'll do it.

Jess: We'll do it.

Jessie: Let's do it.

Jess: Okay.

Jessie: Should we go ahead and end it? Yeah.

Jess: Okay.

Jessie: Okay.

Jess: Well, there you have it.

Jessie: And if you have questions, let us know in the comments.

Jess: That's right.

Jessie: And remember, keep building knowledge.

Jess: Keep breaking those barriers.

Jessie: Market MakeHer investing involves risk.

Jess: There is always potential to lose money when investing in securities.

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Jess: We are not registered financial advisors and do not provide personalized investment advice.

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