Exploring Real Estate and Financial Planning with Michelle Hung | addy Podcast Recap
In our latest addy podcast episode, co-founder Steve Jagger sits down with Michelle Hung, a seasoned financial planner and author, to discuss her journey, investment philosophies, and key insights on real estate, financial planning, and setting up a strong foundation for financial independence. Here’s a recap of the highlights from the conversation, and don’t forget to check out the full video below for the complete interview!
From Student Investment to Real Estate Ventures
Michelle’s investment journey began as a student at the University of Waterloo. Inspired by an article about a father who purchased a rental property for his child, Michelle convinced her parents to do the same for her. This experience taught her invaluable lessons about real estate and the responsibilities of being a landlord.
Reflecting on her first property purchase, she shares how real estate investments can be rewarding yet challenging, especially when balancing other commitments. Eventually, Michelle decided to sell the property, gaining insights that have shaped her approach to financial planning and investing today.
Moving into Capital Markets and Stock Investment
After university, Michelle entered the world of capital markets, diving into investment banking, IPOs, and M&A. This experience equipped her with a deep understanding of stocks and capital markets, laying the groundwork for her future as a financial educator.
Her first stock investment was Air Canada, a penny stock at the time. Although it didn’t yield high returns, it motivated her to dive deeper into stock market principles. She credits her growth in this field to the influence of financial luminaries like Warren Buffett and Peter Lynch, whose philosophies helped her develop a solid, long-term approach to investing.
Becoming a Financial Educator and Author
Recognizing the gap in accessible financial education, Michelle decided to share her knowledge with others. Her first book, **The Sassy Investor**, targeted women with a fun, approachable guide to investing. Published in 2019, the book simplifies complex financial topics and is designed as a workbook that readers can actively engage with.
Michelle’s second book, **Investing for Teens: How to Save, Invest, and Grow Your Money**, is aimed at helping young readers understand the basics of financial planning and investing. Published in 2022, it empowers teens with knowledge that can set them up for financial success from an early age.
What Is Fee-Only Financial Planning?
Michelle explains the value of being a **fee-only financial planner**, which means her services are solely based on advice without any product sales or commissions. This approach allows her to provide unbiased financial guidance, particularly valuable in a landscape where financial products are often marketed with sales-driven motives. Her work covers comprehensive planning, including estate planning, risk management, and retirement.
Insights into Real Estate Investing in 2024 and Beyond
Discussing the real estate market, Michelle shares her thoughts on direct property investment and the risks associated with being a landlord. With rising property prices and high mortgage rates, she highlights the challenges of achieving positive cash flow, especially in markets like Ontario. For those interested in real estate but hesitant about property management, Michelle advocates for platforms like addyAddy, which offer hands-off real estate investment opportunities.
Financial Advice for Young People and Parents
For younger individuals, Michelle emphasizes the importance of learning to invest early. She encourages parents to support their children’s financial journeys by exploring informal trusts or custodial accounts where minors can begin investing with parental guidance.
Michelle suggests young people start by investing in companies they know and understand, like Apple or McDonald’s. This strategy not only builds familiarity with the stock market but also makes the learning process enjoyable and engaging.
Managing Risks and Preparing for the Future
As the conversation winds down, Steve and Michelle discuss the importance of long-term financial planning, especially considering inflation, market fluctuations, and the unpredictability of political landscapes. Michelle highlights that retirement planning should be tailored to each person’s desired lifestyle and that protecting investments against inflation is critical.
For retirees and those approaching retirement, Michelle cautions against being overly conservative with investments, such as relying solely on GICs, which may not keep up with inflation in the long run.
Key Takeaways
Michelle’s practical and accessible approach to financial planning and investing offers valuable insights for anyone on the journey toward financial independence. Here are some takeaways from this episode:
- Invest in What You Know: Start with companies or investments you understand, especially if you’re new to the stock market.
- Consider Real Estate Carefully: Real estate investing can be lucrative, but it’s essential to consider cash flow, location, and market conditions before diving in.
- Fee-Only Planning Is Unbiased: Fee-only financial planning provides impartial advice without any sales pressure, making it a valuable resource.
- Long-Term Planning Is Essential: Building wealth is a marathon, not a sprint. Consistent investment, risk management, and inflation-beating strategies are key to lasting financial security.
Connect with Michelle Hung
Visit these websites if you’d like to learn more from Michelle or explore her books, you can find The Sassy Investor and Investing for Teens on Amazon.
https://thesassyinvestor.ca/
https://thesassyinvestor.ca/sassy-investor-book/
https://www.amazon.ca/Investing-Teens-Save-Invest-Money-ebook/dp/B0B3QYM7CT/
Watch the Full Interview
For full insights and an in-depth conversation with Michelle Hung, watch the entire interview on our YouTube channel or listen on Spotify or Apple Podcasts:
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