MSG Presents : "Eric on Money" - How To Own Your First Company, Stock Market Investing Pt. 2

In Part 2 of this powerful Eric on Money series, Eric McLoyd breaks down the essentials of stock market investing for everyday people ready to build wealth on their own terms. Whether you're a beginner or still sitting on the sidelines, this is your practical guide to becoming a shareholder — aka owning your first company.

Eric shares real talk about risk tolerance, investment styles (passive vs. active), and how to set your goals so they actually align with your life. He demystifies value vs. growth stocks, shows you how to diversify like the pros, and introduces you to ETFs, index funds, and the industries that fuel the market.

With his signature blend of streetwise wisdom and financial expertise, Eric helps you overcome fear, ditch financial imposter syndrome, and take your first real step toward ownership.

This episode is especially for:

• First-gen investors
• Those recovering from financial guilt or self-doubt
• Professionals looking to turn insight into income

💰 You don't need to be rich to invest — you need to be ready. Let's get you there.

•   Need support: https://www.controlyourfinances.co/
•   Want to hear Pt. I? Check it out here
•   Financial Questions: emcloyd@hubriswealth.us

Transcript

How To Invest In Stocks_ Quick Start Guide For Beginners_ Pt_ II

[00:00:00] My name is Eric McLoyd, and I have been waiting to do this all week long. I'm super excited. Um, today we are going to I'm going to share some valuable insights with you.

So my platform is all about helping people gain control of their finance. Today we're talking about stocks, but I cover a lot of other subjects, budgeting, real estate, anything that has to do with money, but from the perspective of gaining control. So if you're not following me, I'm on Instagram, I'm on Facebook, and you know, definitely on LinkedIn, I share financial tips and insights on a daily basis.

Alright, let's jump in. I'm gonna get directly into this so let's go. So a little bit more about me. Some of my credentials are MBA in corporate finance, Northwestern University, Kellogg School of Management, alum, decade in the financial industry, financial coach fractional CFO, and [00:01:00] my favorite one.

I am a former financial imposter. Former financial imposter. What is that? So I had this belief for many years that I, I did not deserve to do well with money. Anytime I, I received money, I already had these thoughts going through my head about what would end up happening, which wasn't, was never good. And so I felt like I was an imposter.

I was good at making money, but just didn't deserve to have it, is what I was thinking. So maybe you're feeling the same thing out there. If you are, you're in the right place.

Now we did do a part one and I definitely want you to get a copy of that. We went over some really good information in that and if you want a copy of part one, send me a DM or um, let me know in the comments. But in part one, we went over how to understand how the stock market works. We went over setting up an [00:02:00] emergency fund.

We went over, which this is one of my favorites, we went over how to learn what your risk tolerance is. And I use the example of if you put some money in the market and you say your stock comes in as you bought the stock at $60 and the next day it goes down to 55, how are you going to feel? Are you going to get anxious and upset?

Will you not let it bother you? You know, your response to that lets you know what your risk tolerance is, meaning how do you deal with the fluctuations in the market and the fact that you could lose your total investment. And then the fourth thing that we went over was setting up a brokerage account.

Setting up a brokerage account. So taking that next step. So this is a quick start guys. So it's not just meant to be informational. I want you to take this information and actually use it. So after you determine your risk tolerance, your emergency fund set up and how understand how the stock market works, I want you to set up a brokerage account and I gave [00:03:00] you some insights, uh, on that in part one.

So just go to part one and you'll be able to see the information on how to get started with setting up your brokerage account. All right, so today what we're going to cover is we have four steps that we're going to cover today. We're going to cover complimenting your risk tolerance. So once you find out what your risk tolerance is, how do you compliment that with the overall goal of getting into the market?

We're going to cover how to determine your investment style, which is super important, right? Everybody has their own style. Uh, when it comes to fashion, when it comes to how they address playing sports or their career, and it's no different with stocks. Everybody has their own investment style, and we're gonna help you determine today what is yours.

And then I like number seven, we're getting going to get into how to learn some new investors strategy. So if you're coming in and you're [00:04:00] new to this. You are gonna need some strategies to help you get started and we're going to go over that. And then the last one is super important. We, we need to figure out how to decide on what your investment goals are going to be.

And I don't really hear this talked about a lot in the media. I'd like to hear this conversation a lot more, but it's like. So, yeah, you can get in the stock market, you can buy real estate, you can do all of these things, but what are you doing it for? What is the real reason? Because that reason, as we're going to get into, will determine a lot of your decision making.

So let's get into it. Step number five, compliment your risk tolerance. Now the thing with this is, is that based on your risk tolerance, it's going to determine what types of stocks you feel most comfortable with. And I want you to start thinking about that now. So [00:05:00] it's inevitable that you'll likely get in the market, but when we start, when you set up your account and you're thinking, okay, I've got a thousand dollars in my account, I'm ready to actually invest.

I have a low risk tolerance. What types of stocks should I be thinking about? So I'm the type of person that if I, if I see any changes in my account that are not positive, I may start freaking out what types of stocks will I feel most comfortable with? Or you could be in the middle, you could be moderate.

You could have a moderate risk tolerance, meaning you're kind of on both sides. You can kind of deal with the fluctuations in the market, but you don't wanna see too much fluctuation for too long. Or you could have a high risk tolerance, meaning, you know what? I see my stock is down. I'm not really going to worry about it because I'm into long-term growth, so I'm not gonna get too caught up in that.

I'm okay with it. But whatever yours is, and there's no right or [00:06:00] wrong answer, you really have to be very honest with yourself and it will take a little bit of experience maybe, or you could use experiences that you've already had. So maybe you're a card player. You know, maybe you're a poker player. How do you deal with risk there, uh, in your career?

How do you deal with taking risks in your normal everyday life? Are you conservative with risks? Are you, you know, do you like taking a lot of risks? Just really think about it and make sure you understand there's a connection between that and how you're going to interact with stocks.

Now, let's look at this. So. There are two main types of stocks that we want to think about when we think about your risk tolerance. One large category is called value stocks. And value stocks are very important because they're better many times for people with a low risk tolerance. [00:07:00] And the reason why is because, as you can see here, they typically hold their value over time.

The price does change because the prices change on stocks no matter what, but they usually change gradually. You don't see a lot of volatility, meaning you don't see a lot of, you know, widespread movements in the stock prices. And the other good thing about value stocks is they typically pay dividends.

So that's basically the stock is doing is, uh, running its course and then they pay back income to the investors. Based on that performance or based on their commitment to pay dividends on a regular schedule. So some stocks, value stocks will pay dividends quarterly, some pay monthly annually. It just depends on what, what stock you're dealing with, and that's something that you can research ahead of time to see.

When you're thinking about what stock you want, you can look and find out and see, okay, [00:08:00] this is a value stock. How often do they pay dividend? Because you might decide, Hey, I want a stock that pays dividends on a monthly basis. Now we got, we have to talk about some examples. So one, and this is one of my favorite stocks.

I mentioned this on part one. So I'm a Coca-Cola guy. I don't drink as much Coca-Cola as I used to, but I really like Coca-Cola. Um, I know it's not necessarily good for you, but when I first came in the market, I was looking for stocks that. Of, um, companies that I actually consumed, and I would encourage you to do the same.

It doesn't mean you have to buy those stocks, but it gives you some, you already have some familiarity because remember in part one, we talked about how when you're purchasing a stock, all you're doing is purchasing a piece, a small piece of ownership, a small piece of ownership, and so you're evaluating it the same way you would if your cousin.[00:09:00] 

Or your uncle came to you and said, Hey, you know, I'm starting a business. Do you want a piece of it? Or maybe they already have a business. Say your uncle has a lawn care business, for example. Or your uncle could be a lawyer. They might have their own law firm, and they come to you and say, Hey, you know, do you, I'm, I'm opening this up to investors.

Would you like a piece of this company? Same thing here. So you have, and, and using the scenario of your uncle. There would be many different ways you could evaluate whether you felt comfortable or not. Right? And so when we're talking about value stocks and growth stocks here, we're thinking about consistency and conservative, um, movements and price paying dividends and holding value over time.

So we got Coca-Cola here. We have Target and we have FedEx. These are three examples of value stocks. Now, what I want you to [00:10:00] do, and you may wanna watch this video a couple of times, this less than a couple of times, but if you haven't done this already, because this is for beginners, so if you're a beginner, I want you to start getting familiar with Yahoo Finance.

Or Google Finance because we're, and we'll do a part three and probably a part four 'cause I don't want to do too much information on any, on any one lesson. 'cause it'll take time to, to process and, and use what we're talking about. But get familiar what's going on. Yahoo Finance for example, and typing in, typing in Coca-Cola.

When you type in Coca-Cola, you'll be able to see the statistics. Related or the metrics related to Coca-Cola, and you'll be able to see the fact that they pay dividends, how often and how much target. Same thing with value stock. FedEx. We see FedEx on a daily basis. I probably go to Target on a daily basis and, and maybe you do too, but, um, FedEx is, uh, definitely a [00:11:00] value stock as well.

And Walmart, so I know a lot of you out there probably go to Walmart to get items. It's a value stock, so. There's the consistency, the conservativeness. Now going back to your risk tolerance. Now say you are, you have the moderate to high risk tolerance you have, you're gonna probably be more attracted to what they call growth stocks, growth stocks.

What is a growth stock? So a growth stock is something that is a stock that it may fluctuate more. It is not as conservative as a value stock. It fluctuates more. So you might go into your account, so say you're monitoring your stocks from your phone, right? Say you have Robinhood and you go into your Robinhood account with the growth stocks, you, you're going to see more fluctuation on a daily basis.

You just are, uh, most growth stock. [00:12:00] A lot of growth stocks are tech companies, and we're gonna get into the different industries in a minute. You can actually invest in, but you're gonna see more fluctuation. But here's the reason why some people are attracted to growth stocks. Here's the reason why.

Because you might be thinking, well, why not just get all value stocks? But here's the thing, and it goes back to what we're going to talk about later, which is. What is your goal? So you might have a person whose goal is they have $10,000 and they need, they want to turn that $10,000 into $50,000 within three years.

If that's what this person's goal is. They're not, probably not going to want to deal with a lot of value stocks 'cause their goal needs to be accomplished in a very short timeframe. So they might gravitate more towards growth stocks. Here's an example of a growth stock here, Google. Another one. [00:13:00] Most of us have Netflix.

Most of us have Netflix, myself included. I actually own shares of Netflix, but I watch Netflix probably on a daily basis, probably watching it too much. But I definitely, when I, you know, as I thinking about companies that I consume, it made sense to me to get Netflix once I did my research. But I was like, okay, I want to add Netflix to my portfolio, but I understand.

That, that price is gonna fluctuate, uh, quite often on a daily basis and just overall through time. And I have to be okay with it, thinking that even though it's fluctuating up and down over time, I'm gonna get a higher return on that stock than maybe I would with a value stock. And then another one is apple.

Apple is one of those that some people consider a value, stock, others growth. But you do send, tend to see more fluctuations with Apple. You know, it is a tech company, it has a consistent, um, [00:14:00] performance and history. But yes, if you go into your account, you probably will see more fluctuations with that stock.

So let's tie this back. So we're going back to what is your risk tolerance? And the way to compliment your risk seller. So all we're trying to do is get you comfortable with getting into the market, because I've been there, I know what you're thinking. It's like, I don't wanna go in here and lose all my money.

I don't have money to just throw away. And so this comfortability process, part of it is understanding what is my risk tolerance? Is it, um, high, low, moderate? And then tying that to. Either value stocks or growth stocks, right? Any, if you have any questions, please drop them in the chat. I'll definitely answer them, um, at the end, or I'll send you a, a DM later or a message or email, but let me know if you have any questions about any of this.

Okay. So we're, we're trying to get comfortable here, [00:15:00] right? So we're boosting our literacy so that we can get comfortable with going into the market. So with that in mind, we have to start thinking about, okay, if I'm going into the market and ultimately I'm buying pieces of a company, what is my menu of options here?

What is my menu of options? Like what types of companies can I actually. Invest in, you know, what's the menu? It, it is almost kind of like, I'll use another analogy. It's like going into a grocery store. It's like, you know, you want to get food, but there are different types of food that you have available to you, right?

So you go into the grocery store, you can get produce, you can get snacks, you can get poultry, you can get alcohol. This is the same thing here. And so what they refer to these options are as, [00:16:00] um, they call 'em market sectors or industries. Market sectors or industries. So here are some of our options. Um, energy materials, industrials, utilities, healthcare, finance, financials, consumer discretionary, consumer staples.

Information, technology, communication services, and real estate. So most of the stocks that you're going to see in the market are going to be in one of those categories. Most of the stocks that you see in the market are going to be in one of those categories. Yes, Eva. Small piece of ownership is a great way to look at stocks.

Yes, it is, because that's exactly what it is. I really wish, you know, advisors and coaches and people of that nature, we would do a better job of just saying that that's what it is. Because if, when we look at it with that simple perspective, it makes our job [00:17:00] even easier. It's like, okay, do I want to take my $500 and get a piece of ownership in this company?

What is my evaluation process going to be for me to feel comfortable? And the same thing applies to what we're talking about here, because you might say, you know what? I'm not trying to mess with any energy companies. I don't know anything about 'em. I don't really, or I don't like them, or I'm not trying to, or on the flip side, you might be like, I've worked in healthcare companies my entire career, so I feel comfortable, comfortable with those.

You know, I can, I even am already aware of some of the healthcare companies that are in the market because I was working there and they were giving us opportunities to purchase shares. So you may start there, but it's hard. Like for me, when I first started, I wasn't aware of all of the different sectors and industries that I had access to.

And so I was purchasing in one or two industries and it was really uncomfortable because I just didn't feel like I had [00:18:00] a lot of options. And then once I found out, wow, there's 11 major sectors that I can invest in, I was able to get more comfortable and make better decisions. So think about this. Which ones do you think you would be more drawn to?

And if, and if you feel like, you know what, I just need to know more about what's in these different sectors. You can go into Yahoo Finance, you can do a quick Google search. Your search would be something like, what are some good energy stocks? What are some good materials, stocks? What are some. I need some examples of consumer discretionary stocks.

And then you'll have all of these options come up and then you'll be able to do that research. But also when you're in your phone app, when you're doing your research, they typically, if you pull up a stock, they'll be able to categorize it for you so you can see, oh, okay, this is a real estate stock. And so you kind of know what industry you're dealing [00:19:00] with.

So 11 major sectors. You are trying to get comfortable. You've already determined value or growth. Now you have value and growth stocks within all of these different sectors, right? So you got your, you determine your risk tolerance. You're thinking value or growth or both. And then you're thinking now, okay, now I need to get comfortable with the various sectors in industries that are within the market.

Now, here's one of my favorite ones. And that is determine your style, right? Determine your style. We do it in our everyday life, right? So I rock, I like to rock these certain types of hats or I might like specific types of artwork or specific type of car. You're going to have your own style in a stock, uh, market as well.

But we have to know how to what. Same thing as before. We have to know what options are available to us. For our style, right? Just like [00:20:00] if I, if you go out and you are looking for a specific type of, say you are a lady and you want a purse. You have, you may have a specific style, but you need to know what your options are so that you can find the, the purses that match your style, right?

So let's get into that. There's two main. Styles that you can have when you're dealing with stock investing and really investing overall. And that is passive, right? So you see the beautiful woman here, she's just chilling, right? She's she and passive, not meaning this in a negative term, in a terminology, is just, she's relaxed, right?

She's drinking her coffee, but she has automated options on the back end to help her with. Making stock deci, or probably usually when automation will come in, it's like, you know how you can set amounts to come out of your account on a period on a [00:21:00] timetable? You can do that. There are automated options, or you might say, I wanna buy shares of Coca-Cola every Friday.

You can set that up. The other thing though is you might want help. You might want help building and managing your portfolio. There's nothing wrong with that. So you see her, she's sitting here chilling. She might have an advisor or a robo-advisor as they call 'em, which is another, you know, it's a tech option where somebody's making these decisions on your behalf.

You've already kind of told 'em, look, I got, I have $50,000. My style is more conservative. And I want you to find me a bunch of stocks in the energy sector. You set that up and then they go find it for you. You're not really doing the research. You're not running around looking at the different charts and all of the metrics or anything like that.

They're taking care of it for you. Nothing wrong with that. It just [00:22:00] depends on what your style is. Now you have the second style, and this is my style. You got the active you want to be directly involved in the process, directly involved in the process. And what does that look like? That means that you are going to do your own research.

You're going to be the one looking at the metrics. You're going to be the one actually making the trades. Like you're in it, you're in it by yourself and you're not that you don't get information and resources from different places, but you're actually the one carrying it out. So I want you to ask yourself right now, what is my style?

What do I think my investment style will be? And again, there's no right or wrong answer. Your style is your style. There's no right or wrong answer. You have the ability to determine what your style is. It's like you do in your everyday life. But knowing that you have the option to have a style is very important.

So think about that. Are you, you [00:23:00] passive? Do you believe or do you think that you want to have an active investing style and hey, you might have to actually get in the market to figure that out. You might have to get in the market to figure that out. And hey, many of you already have a 401k or an annuity that's more of an example of a passive option, meaning.

And I don't feel like employers do a great job at this when, you know, they have these relationships with these, um, brokerage account folks, and then they'll have you putting your money in, but you don't necessarily know what they're doing on a daily basis. All you're saying is, I want a conservative option.

I want, you know, but I've been there. You don't know really what you're telling these people to do, but that's an example of passive because they're managing everything. You're providing the money, but they're doing all of the day-to-day work. So I always encourage people that even if you have a 401k, [00:24:00] it's good to learn how to trade on your own because it will help you understand your 401k that much better.

Because then you can go to these people and ask them better questions about what are you actually doing? What are you actually doing? And why haven't you asked me what my goals are? My investment goals are so that we can structure my portfolio accordingly. Right now, I'm using this word portfolio quite a bit.

I want to talk about that a little bit, a portfolio, you know, because these words, I feel like is, are what get us thrown off many times. A portfolio is just the container that you're holding all of your stocks in. It's just a container. It could be, you know, your portfolio could exist in many different places.

Like you could have something on your phone where you like have Robinhood part of, but then you also have a 401k. Many of you own your own property. All of these things are part of your [00:25:00] portfolio portfolio, but it's this container, right, quote unquote container that holds everything. So we start thinking about, okay, what's my net worth?

And we start adding up all these assets. It's going to be taken from all of these different pieces, but it's part of this one big container that we refer to as your portfolio. Now, some people may have everything very efficient and they have everything in one container, and they don't have to pull it together.

That's fine. But just think when you hear the word portfolio, it's just a container. That's all. It's. Fancy word for container. Fancy word for container. All right. Now this is a big deal. Step number seven. We gotta learn the strategies and there's millions of them all. What I'm attempting to do in this short course is to give you enough to get started.

I don't wanna overwhelm you with a million different strategies and a million different pieces [00:26:00] of information. I'm giving you a basic foundation that you can take. And use it to get in the market with, you can definitely, uh, replay this video. I'm gonna set the video up later where it has chapters where you can go to the specific part that you want to go to, and I'll have to watch the entire video.

I really like when, uh, creators do that. Like you might know, I, I wanna go back to step seven. I don't wanna like have to find it. I'm gonna always make sure that I have that option for you. But yes, the strategies are, and let's, let's get into the word strategy. I know many of you from corporate, and we heard the word strategy all the time.

I realized later on that I didn't really understand what that meant as it related to my money. So let's just talk about it really quickly. You're an investor, meaning you are taking your money and taking a risk on somebody else's efforts. And so what I'm proposing is that in your [00:27:00] time of doing that, you have, um.

Ways to be successful. So we have the goal, whatever your goal is, and we're gonna talk about that more in a second. But once you have the goal, so say the bigger goal is, I just want to get into market. How are we going to do that strategies? Answer the question how learn new investor strategies. How? How do we do it?

Two of the biggest strategies that have been helpful for me, and I think are helpful for anyone are. And this, especially for new people, especially for new people, you gotta, you want to think about diversifying, diversify by purchasing across multiple industries. So we talked about the industries, the 11 major industries.

So you want to try to get to a point where you're investing across multiple industries. You're mixing value and growth stocks. So you, you might know, Hey, I have a [00:28:00] high risk tolerance. But even though you have a high risk tolerance, you don't wanna buy purchase all growth stocks. The majority of the stocks that you purchase might be growth, but you do wanna have some value stocks in there and vice versa.

You want to have a mixture. We're talking about how strategies, right, strategies for success, and then. You know, you wanna get assets other than stocks. So we're talking about stocks today. But as an investor, I would want you to consider real estate. I would want you to consider bonds. I would want you to consider investing in startups.

You know, there's a lot of other stuff that you can get into, but all of that is a strategy to protect you because you're not putting all of your money in any one type of investment. So I want you to really think about that. So you might get into the stocks, but then I want you to be thinking about, okay.

What other asset do I need to be thinking about? And then considering purchasing pooled securities such as ETFs, [00:29:00] index funds, and mutual funds. And we're gonna get into those in a second. Um, I see Yvonne's in the chat. I love it. She said, um, wow. Stock style. I never heard it put that way. Thanks for breaking this down.

Yes. Yvonne, it took me many years to figure out that I had the ability to have my own style and investing, and I, I would love to hear what you believe yours is, and then, yeah, me, you, you and I, you know, we both know about the 401k situation. You know, they'll, they'll get your money, but you don't necessarily know what's going on.

But it's a passive form of investing. But back using the 401k as an example, it's also an example of this word pooling. So when you have a 401k, what happens is they pull all of the people at your job together and use that as a, as a, their method of investing. So you're doing it with other people. It's the same thing with these ETFs and [00:30:00] index funds and mutual funds.

So pool, when you hear the word pool or pooling as it as it relates to securities, so when we talk, hear the word securities, we're talking about investments, things that you can get, that you can lose your money, right? You're taking your money and you have a risk and they've created a package or a product for you to take the risk in.

That's a security ETFs, index funds, and mutual funds. When you hear the word pool, it just means that it is more than just. Individual, it's multiple, it's multiple people or multiple, um, stocks that are being invested in. Now, when you see the words ET, F or fund, so when you start doing your research in the app, you're gonna start seeing these words a lot because a lot of these fall under the category of ETFs or funds.

You're gonna see those words a lot, and I would encourage you, there's a website that will be your best friend called Invest. Edia [00:31:00] the word Investopedia, P-E-D-I-A. Do com. Use this video as a foundation. On terms that you want to know more about, you can hit me up, but also go to Investopedia. It is a very easy to understand website where you can put in ETF.

They'll give you an explanation in writing. They probably have a video and it's just easy to understand. Investopedia was my best friend when I first started, started investing. I, I definitely want you to use that, but when you see ETF or fund, all it means is that your money is pooled, right? There's a collective with other investors to buy stocks.

So it's not just you. It's pooled with other people to purchase, pooled with other people. And you see these, all these people here at the bottom to kind of bring home the example, pooled with other investors to buy stocks. Okay? [00:32:00] These fancy words, but they have very simple meaning. Now we do have to define what the, what they are though, right?

So an ETF is an investment vehicle that is composed of a mix of assets such as stocks. Remember we just talked about bonds. I'm gonna do some kind of a, a masterclass on that as well down the road. Today we're talking about stocks. Which is constructed to track the performance of a market segment or index.

Okay, we're gonna talk about that more in a second. Then you have an index fund, which is just a type of mutual fund that only tracks a benchmark index like the s and p 500 or Dow Jones. So here's the thing about the funds. Let's simplify this. ETF index fund, so we know that there's some similarities here, right?

You're doing this with other people. It is different than you [00:33:00] purchasing an individual stock, but it is also this collective also in their, the fund itself is investing in multiple stocks or multiple assets at one time versus just one. So that's the, that's the opposite of you investing in Coca-Cola by itself.

That's an individual stock. It's not an ETF, it's not an index fund, but you could also get into an ETF that has Coca-Cola within it. You could also get into an E-T-F-E-T-F that has Coca-Cola within its mix of investments. Now tying this back to what we talked to before, we're getting, we're trying to get comfortable.

So this is the strategy to get comfortable because yeah, I can invest in Coca-Cola by itself, but as we've talked about, that's risky. I'm only investing in one sector at that point. [00:34:00] You know, it's only one stock. So all of my, if I got $10,000 on Coca-Cola, super risky because. Whatever happens with Coca-Cola is going to determine my fate versus you getting into a fund where they're investing in a variety of different things.

Then when you look at an index fund, it is like you're not in both of these. You're not doing it alone. You're in here with other investors and. A lot of these funds use some type of index to determine what they're actually going to purchase. 'cause you might be like, okay, that's cool with the funds, but like what are they?

How do I know what they're going to be investing in? Or how do I know what my performance is going to be based on? And so like the s and p 500 is one of those indicators that we use to determine the overall health of the economy. You have certain stock, uh, funds or etf, ETF ETFs that mirror what's happening in the s and p 500, for example, or it [00:35:00] might mirror what's happening in the Dow Jones, which is another, um, index indicator that we use to determine the health of the economy.

So all of these are things that you can use to get more comfortable. You might be like, look, I wanna, I'm, I did my research. I see the s and p 500 has a really strong track record. I wanna invest in ETFs or funds that are following the s and p 500. That would be a strategy for success versus you just saying, oh, I'll just pick, you know, anyone, it doesn't really matter.

Or you might say, you know what? I want to get an ETF That's trading based on the healthcare industry specifically. You can do that. So these are just strategies for success. So remember these E-T-A-E-T-F, you're gonna hear it again and you're gonna hear Index Fund. And remember a mutual fund, and we'll get into this deeper in another training, but it is just uh, and Index Fund is a type of mutual fund and it tracks a benchmark [00:36:00] index like s and p 500 Dow Jones.

Now I'm gonna give you all another tip that I want you to use. Start watching the financial news. Even if you do it for 10 or 15 minutes per day, and I want you, as you're watching it, I want you to write down the terms that they say that you don't understand. Write down the terms that they say that you don't understand.

So when they say Dow Jones, I want you to write it down and then I want you to go to Investopedia and look it up. I want you to do this for a period of 30 days or more till you get to the point where no matter what it is, whatever term they say, you know something about it. And you've developed an understanding enough to where you can follow the financial news.

Because one thing I'm gonna tell you, and I wanna make sure I highlight this, no one knows what the stock market is going to do. I'm [00:37:00] gonna tell you that right now. I don't care how many years they've been in the market, I don't care what their background is, how much money they have. That's why you see people go to jail for insider trading because if they do do something where they're manipulating and they're, they're getting information that everybody else doesn't have, they go to jail.

They're supposed to go to jail. So nobody in theory is supposed to know, is going to know what's going to happen with the market. So we have to get as much information as we can. So that we can make our own decisions. Even if you're listening to a person like myself or Dave Ramsey, Suzy Orman, we might even make a recommendation or give you some, some, you know, some information or a strategy, but you still wanna have enough information to second guess that and go back to, does this align with my goals, my style, my risk tolerance?

Because the biggest thing I see as an issue in the financial industry is this one size fits all mentality. It doesn't work like that. There's, I can't sit here and tell you, you need to [00:38:00] get Coca-Cola stock, or you need to get Apple stock or Walmart. It depends on a lot of different factors as we've discussed today.

What's your style? What's your risk tolerance? What is your goal? And you factor all these things into that so that you can determine what's the best move. For you, and you might say, well, I, I still feel like I need some help. You can still work with a person to help you, but at least you're coming in knowing what your goals are versus them telling you.

So it puts you in a power seat, and I want you to be in a power seat. All right, here's number eight, and we're rounding home base here. Again, if you're out there, if you like this, if you think this was good or helpful, hit the reaction button. I want you to share it with your network so more people can see it.

You know, the algorithm is a real thing, so the more people react and, you know, drop comments and things of that nature, it, it literally does make sure that more people see. This content. Also, if [00:39:00] you're out there, if you did not get part one, I know I gotta get, um, part one to Yvonne and a few other people.

But if you did not get part one, definitely get that The chapters are already in there so you kind of skip around to what you think is most important for you at the time. It's not a long video, just like this one. Um, but it's super powerful, so I definitely want you to get that. Alright, so round at Home base, decide on your.

Investment goals. So this is just about being clear, right? So, you know, we have to be clear about why we're doing this. And you gotta keep it real. You gotta really keep it real. So being clear about why you want to invest in stocks makes it easier to select the stocks, it makes it easier. Uh, here's some examples.

I want stocks that my children will own one day. I want stocks that my children will own. Now, think about that statement. If you want stocks that your children will own one day [00:40:00] you might be more geared towards value stocks because they may have been around for hundreds of years already. You know, they're dependable and all of that.

You might mix in some growth stocks, but you're trying to make sure that your kids get those stocks. So that makes a big, it's a big factor in how you choose. Or you might say, Hey, I wanna buy stock so I can better understand. I used this example earlier. I wanna under better understand how my 401k works.

Nothing wrong with that. Take a hundred dollars, consider getting into the market, set up an account and just make some, make some moves. So, and start to enhance that literacy. You see something in the app you don't understand, go to Investopedia. Look it up, look at the financial news, and then over time you'll be able to better understand how your 4 0 1 KK works.

But that's a different goal than I'm investing because I want my children to own my stocks one day. Right? Or you might be like, I'm in retirement right [00:41:00] now. I want to generate an additional stream of income. And you know, you want to be thinking about value stocks that pay dividends, right? It's, it is really just that simple.

You want income, then you want to be thinking about value stocks that pay dividends. That would be where your mind would be going and where you're at when you're researching. Or if you hire somebody and you want to take the passive role, you're telling them that, look, I'm doing this because I want to create another income stream.

I want to pay you to figure out what the, what that looks like for me and what options I should make. I would love. Okay, definitely. I will definitely make sure you get part one. Let me know where you're, I can't see the full chat, but let me know where you're chiming in from. I'd love to know that, and I'm glad you found this useful.

That is definitely my goal here. So yeah, why are you doing it? Keep it real. So here's my keep it real, um, moment for, for what I want to say to you about stocks. You know, when I first started off as an [00:42:00] investor. I had, I put up a post about this the other day. I was taking part of my rent money to do it. I didn't, you know, I already didn't have all the rent money, so I was just like, you know what?

I might as well take some of this money and get in the market. But I was looking for a status. That's just where I was at in my life. I, you know, I was in a role, corporate role where I didn't have a big, fancy title and all that stuff. I want, I just wanted to feel like I had some type of a status. So I was like, you know what?

I'm gonna be an investor, and so it, even though I was under the threat of being evicted, I took a piece of my rent money and got in the market, but that I'm just being real. That's why I wanted to get in the market. Now I got older and more mature and got myself together, but that was the reason at the time.

What's yours? What's your reason for being on this live today? What's your reason for really wanting to get into the stock market? I would love to know, and you might have to think about it. You know, [00:43:00] you might have to journal about it, you might have to talk to people around you, but really try to figure that out.

Now I wanna do a quick recap of what we talked about today. Just really quickly. So we talked about, and I'll go to that slide, but we talked about complimenting, and this was part two. The goal of this is to get in the market how to compliment your risk, risk tolerance. We talked about, um, the different options available, growth, pa uh, growth value stocks.

We talked about determining your investment style, right? We spent some time on that and we talked about learning new investor strategies. We just finished that and then we talked about deciding your investment goals. Okay? All of this is tied to part one, so definitely get that. But if you are watching this and you're thinking, you know what?

I love all of this information, but I just don't know. So [00:44:00] if Yvonne is saying she's looking for other streams of income to create residuals, so you wanna be thinking about, you know, your considerations, one, are towards, uh, value stocks and dividends. So if you're out there and you're like, you know what?

This is great. I love it, but I feel like I don't even know if I'm ready to take the thousand dollars or whatever it is and get in the market. I know I want to, but I don't really know where I stand. Like, is this the right time? I've created a solution just for you. I call it a financial clarity audit.

This is my favorite thing that I believe I do in the financial industry other than like doing these types of masterclasses. But I love to help people figure out where do I stand? So I created this Financial Clarity audit, and all it is is a tool to help a committed person gain control of their [00:45:00] finances faster.

'cause let's think about it. You can't gain control of something that you don't understand. You can't gain control of something that you don't understand. I'll use health, for example. Say you have hypertension or diabetes and you find that out, you can't get control of it if you don't understand it. You can't.

You would have to have some level of understanding to get control to know, you know, do I need to take medication? Can I cure this naturally? Why is this even happening to me? You know, all these different things. You gotta get the. The information, the knowledge to get controlled. No different in your finances.

So here, here's what this Financial Clarity audit will do. Complete audit of your financial situation, completely everything. And that also includes for those of you who are still in corporate, that includes your corporate benefits, we'll take a look at those as well. Streamline process to collect the information.

So this one's a big deal. [00:46:00] I know you all are busy. You don't have time to be trading back and forth a million emails. I totally understand that. I've been there Birmingham, uk All right, Birmingham in the house. Thank you for joining. Um, I know you don't have time to be trading back a million emails. So I, we've created, at my company, we've created a streamline process to collect that financial information in a secure manner.

We're not going to be asking you or your account numbers and all that. We don't need that, but we would note, need to know information like, well, how much is in certain accounts? How much do you have saved for retirement? You know, just how much insurance do you have? These different questions that we're going, different pieces of information that we'll need to be able to pull together and do a complete audit.

Number three is cool because you get unlimited email access through the session date. So the, the, we're gonna talk about the 90 minute session in a second, but it's like, I like to have people be able to have that access more leading up to the actual session. You'll get a draft of the, the audit [00:47:00] before we actually meet, but in the meantime, things might come up.

It might be open enrollment at your job. You might be trying to figure out, you know, what, what order I told you all my debt, which one should I pay first? You know, um, you might be trying to determine like, how do I get my credit score to 700 and above? Use that unlimited access to ask those questions. You have it, and then all of that culminates into an actual 90 minute session.

So you'll have gotten a draft. I would've already got all your information. We would prepare an audit, which basically it'll be in presentation form, and we'll take 90 minutes to walk through it, 90 minutes so you have time to ask additional questions. You have time to go into detail about things that were recommended in there.

You know, you just, it's not a rush. You have a lot of time to explore and make sure that when you are done with this session, you know exactly what needs to happen next. You know, part of the recommendations might [00:48:00] be you need a CPA. We would've been discussed that in detail, and you'll know why, and you will know.

You probably have some referrals from us on people to go talk to, but you're clear, right? And then the cost is $1,998 for this solution, $1,998. That's the Financial Clarity Audit, and it's designed to get you clear. It. So think about the word audit. This is another one of those words, but like even if you get audited by the IRS, they're trying to get clear on what's going on.

Like something's not adding up, they're trying to get clear. It's the same thing here. So you're going to get clarity on where you stand. If you see over here, number one. Number two is a big deal. You're gonna learn your key financial metrics. Now we're all, a lot of us are from corporate, so you always had these conversations about metrics in corporate, but what about the ones in your financial life metrics, such as what is your net worth?

And I deal with this a lot, especially with people who have higher [00:49:00] incomes. You might make $250,000 a year, that's fantastic. But what is your net worth? What is your net worth? When we subtract your liabilities from your assets, what is your economic value? It could be negative, it could not, but you want to know those metrics.

You wanna know, how much do I need for retirement? You wanna know what is my discretionary income? Discretionary income is another big one because it determines what all, what else can you do? So if we, here's how you calculate your discretionary income. You add up all the money that's coming in, you subtract it from your expenses, that's your discretionary income because that's the money that you have left over once you've taken care of all of your responsibilities.

Big deal. This audit expands your financial literacy because we're going to break this down and use these specific terms and go into more detail about them in the audit and in our 90 minute conversation. Again, you get to answer those burning questions. Number [00:50:00] five is my favorite one. Number five is my favorite one because we're gonna take whatever we find in the audit as a challenge, and let's use this as an example.

You might have $50,000 in credit card debt. We're gonna flip that into a goal. I'm going to take my $5,000 in discretionary income and use it to pay down this $50,000 in credit card debt within the next 36 months. We're going to flip it because why? Because we don't have time to keep talking about this stuff in a negative manner.

We know what the deal is. You've got clear now it's time to flip those or reframe those into financial goals and challenges. That is the financial clarity audit. You might be watching this and you're like, this is not for me. But if it's for someone else, let them know about it. It is tax time. This is a great time to get clear on what your next steps need to be.

Hey, this has [00:51:00] been a pleasure. Let's gain control of your finances. That's what my platform is all about. You can hit me up on LinkedIn. I post daily content on LinkedIn. Also on Facebook, I have a Facebook page called Eric McElroy. You can uh, go there, get daily insights. You can email me, iMac Lloyd at Hubris Wealth us.

Name of my company is Hubris Global Wealth Management (https://www.controlyourfinances.co/), and you can go to my website, hubris Wealth, US Works Work website is ever evolving, but there's some definitely some good information on there. I want to get to a point where when you go on my website, you feel like your financial literacy has been boosted.

Just from being on my website. So go on there, see how you feel. But hey, it's been a pleasure. Thank you for joining me for this presentation. I have enjoyed it. Thank you, Yvonne. Uh, thank you. Um, Birmingham, uk. I don't wanna butcher your name, but thank you for coming on and you know, remember [00:52:00] you have a right to become an investor.

Don't let not understanding terms and words and things of that nature or what people around you might be saying to deter you. It's your right. It's your right. Just like anybody else, you deserve to become an investor and guess what? I know you'll do it. So hit me up and let me know your progress. Set up those brokerage accounts.

Hit me up with any questions until the next piece.