Podcast Summary: Investment Anxiety Entering 2025 Jill on Money with Jill Schlesinger | Hosted by Audacy | Released on January 17, 2025

Introduction

In the episode titled "Investment Anxiety Entering 2025," Jill Schlesinger, CFP®, along with her co-host Mark Telercio, delves into the prevailing concerns surrounding market volatility and investment strategies as we step into the new year. Addressing listener anxieties and providing expert insights, Jill aims to equip her audience with the knowledge to navigate the uncertain financial landscape of 2025.

Market Performance and Current Sentiment

At the outset, Jill acknowledges the remarkable performance of the stock market over the past two years. “The S&P 500 totally was just killing it up 53% over those two years,” Jill remarks at [03:20], highlighting that this marks the best two-year performance since 1997-1998 ([03:48]). This impressive growth, however, sets the stage for the current wave of volatility and investor unease.

Jill Schlesinger [03:20]:

"The S&P 500 totally was just killing it up 53% over those two years."

Jill Schlesinger [03:48]:

"Oh, and by the way, that's the best two-year performance since 1997 and 1998."

As the market experiences a downturn, Jill notes an uptick in anxiety among investors. She observes that the recent sell-off has prompted many to reach out with concerns, reflecting a common emotional response to market fluctuations.

Listener Concerns and Emotional Responses

Jill emphasizes the importance of recognizing personal emotions in investment decisions. “Regardless of who you are, you are not devoid of emotions when markets go up and down,” she states at [04:01]. This acknowledgment serves as a foundation for addressing specific listener questions about maintaining investment strategies amidst volatility.

Jill Schlesinger [04:01]:

"Regardless of who you are, you are not devoid of emotions when markets go up and down."

Q&A Session: Navigating High Stock Allocations

One of the prominent questions comes from Tyler, who inquires about maintaining a high allocation in S&P 500-tracking funds despite experiencing significant market drops and recoveries.

Tyler's Question [05:24]:

"Are we okay to continue to invest this way considering we do have a high risk tolerance, or should we look to diversify more?"

Jill responds by assessing Tyler's risk tolerance and time horizon. She advises that a high stock allocation is appropriate if Tyler can withstand potential future downturns and does not require the invested funds in the near term.

Jill Schlesinger [06:27]:

"If you were willing to take on the risk and you saw markets drop and then come back up... you might be willing to just be fine with a 90-10 portfolio."

Mark Telercio [06:54]:

"So presuming you don't need any of this money in the next 10, you can handle it."

Jill further underscores the importance of alignment between investment strategies and personal financial goals, emphasizing that emotional resilience is key to maintaining one's portfolio during turbulent times.

Q&A Session: Managing Anxiety Over Employment Stability

Another listener, Keith, expresses anxiety about potential privatization efforts affecting his federal government employment and benefits.

Keith's Question [07:20]:

"I am so scared that I'm going to lose my job, my pension, my health care, my thrift savings plan and all the other amazing benefits that come with working for the federal government."

Jill and Mark address Keith's fears by recommending practical steps to mitigate anxiety through financial preparedness. They advise eliminating consumer debt, building an emergency fund, and optimizing retirement plans to create a buffer against potential job instability.

Jill Schlesinger [08:55]:

"No outstanding consumer loan debt, no credit cards, auto loans, you start paying them down fast, that you have an emergency reserve fund that can actually float you for 6 to 12 months if something were to change."

Mark Telercio [08:53]:

"That would include making sure you've got..."

These strategies aim to empower listeners like Keith to feel more in control of their financial situations, thereby reducing anxiety related to employment uncertainties.

Q&A Session: Balancing Emergency Funds and Investment Opportunities

Victoria, a 31-year-old homeowner, seeks guidance on whether to withdraw funds from her investment account to bolster her emergency savings amidst market uncertainty.

Victoria's Question [09:30]:

"I’m debating pulling out a substantial amount of the $35,000 that's invested and putting it back into a high yield savings account for safety. But I can just as easily see myself regretting that move if I wind up not needing to have made that choice."

Jill advises against market timing and emphasizes maintaining a sufficient emergency fund as a priority. She suggests reallocating a portion of the investment account back into savings to ensure financial security without drastically altering the investment strategy.

Jill Schlesinger [12:32]:

"Don't violate that. Stop trying to outguess what you think is going to happen... So, no, I don't think you should be doing this."

Mark Telercio [12:31]:

"That's what you should do."

Jill reinforces the importance of a disciplined approach, encouraging Victoria to avoid impulsive decisions based on short-term market movements and instead focus on long-term financial stability.

Concluding Insights

As the episode wraps up, Jill and Mark reiterate the significance of aligning investment strategies with personal financial goals and emotional comfort levels. They urge listeners to seek professional advice tailored to their unique circumstances and to remain steadfast in their financial plans despite market volatility.

Jill Schlesinger [13:27]:

"That is our program for today."

Mark Telercio [13:26]:

"It is a Friday, so I just..."

The episode concludes with reminders about subscribing to the newsletter and encouraging listeners to engage with the show for ongoing financial guidance.

Key Takeaways:

1. Emotional Resilience: Recognize and manage emotions to make informed investment decisions.
2. Risk Alignment: Ensure your investment portfolio aligns with your risk tolerance and financial goals.
3. Financial Preparedness: Maintain an emergency fund and minimize debt to reduce financial anxiety.
4. Avoid Market Timing: Focus on long-term strategies rather than reacting to short-term market fluctuations.
5. Seek Professional Advice: Tailor financial strategies to individual circumstances with expert guidance.

Notable Quotes:

• Jill Schlesinger [03:20]:

  "The S&P 500 totally was just killing it up 53% over those two years."

• Jill Schlesinger [04:01]:

  "Regardless of who you are, you are not devoid of emotions when markets go up and down."

• Jill Schlesinger [06:27]:

  "If you were willing to take on the risk and you saw markets drop and then come back up... you might be willing to just be fine with a 90-10 portfolio."

• Jill Schlesinger [08:55]:

  "No outstanding consumer loan debt, no credit cards, auto loans, you start paying them down fast..."

• Jill Schlesinger [12:32]:

  "Don't violate that. Stop trying to outguess what you think is going to happen."

Conclusion

In "Investment Anxiety Entering 2025," Jill Schlesinger successfully addresses the common fears and uncertainties faced by investors in a shifting market landscape. By providing actionable advice and emphasizing the importance of emotional and financial preparedness, Jill empowers her listeners to make confident and informed financial decisions as they navigate the complexities of 2025's investment environment.