Common Investment Myths – And How to Break Them

 

 

Let’s talk about investment myths. Have you started investing yet? If the answer is yes, think about the last time you sat down with a financial advisor and reviewed your portfolio to ensure your investment strategy is still aligned with your goals. If the answer is no, ask yourself why not? Maybe it’s because you don’t think you can afford it,  maybe it’s because you’re afraid of the risk versus reward or maybe it’s because you don’t see the value in paying fees.

 

Here’s the good news, today I’m debunking common investment myths. Actually, I’m going to shatter them. Whatever the reason may be that’s holding you back from reaching your full investment potential, it all ends now. If you’re hesitant about seeking financial advice, investing in the market and exploring different investment options, don’t worry because other people are too – that’s why there are so many common investment myths.

 

The key is to tell the truth about the current state of investing and help Canadians implement an investment strategy that you’re comfortable with.

Here are the real answers to three common investment myths:

 

I can’t afford to invest

 

Yes, you can. Everyone, whether you’re 16 or 56 can afford to put a portion of your after-tax income towards investing. The percentage varies depending on your monthly household expenses and individual disposable income, but yes everyone can afford to invest. So often people feel that saving investing are just for the wealthy – and that’s just not true.

 

I don’t need professional advice

 

Oh yes you do, everyone does. Why? Because there is so much more to creating an investment strategy than choosing the right stock at the right time – and I don’t do that because that’s not what smart investing is about.

 

The truth is investing is about finding solutions that align with your short term and long-term goals as well as your risk tolerance and time horizon. The Manulife investment philosophy is “There’s a difference between access to investments and investing successfully. Managing money wisely is a full-time job which takes experts with significant experience and skill.”

 

On a side note, timing the market to buy in on the absolute lowest day of the year and selling on the absolute highest day of the year to gain the maximum profit is another common investment myth. That doesn’t happen.

 

I shouldn’t have to pay fees

 

Well yes you should. In life we all have to pay for a professional service. I can’t think of a scenario where you get a service for free – except for the library. If you want the best dentist then you have to pay for it. The exact same principal is true when it comes to investing.

 

Of course, you can open a self-directed online brokerage account and manage your own money, but do you have the years of experience and professional expertise of a financial advisor? This is the real reason why paying for a professional service is worth the cost. It’s about access to investments (because you could do that yourself online) it’s about the experience and the expertise.

 

I hope this helps overcome some of your hesitations when it comes to building a relationship with a financial advisor and creating an investment strategy that fits your individual needs. If you want to discuss other common investment myths then let’s chat.

 

*This content was originally created by Manulife Securities for information purposes only. It has been distributed for advisor publication.*

Thinking of selling your house? Spring is just around the corner!

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As the calendar turns to March and we emerge from a long winter, there’s quite a bit to get excited about. The weather starts to warm up. St. Patrick pays a visit, we go mad for college basketball, spring training begins, and the clocks “spring forward” by an hour.

 

There’s also something to look forward to for people thinking of buying or selling a home. March is when people typically start thinking of making touch-ups or looking for an agent to work with, so they can be ready to go in May and June when the market heats up.

 

If you’re thinking of selling your home this spring – or at any time, for that matter – I’ve put together a list of things to make sure you’ve covered:

 

  1. If you’re planning to sell your home through a realtor, check out how effective his/her online marketing is. These days, almost everybody looking for a house starts their search on the internet, and probably won’t make an effort to see a house if they don’t like how it looks in the online listing. Take a look at the listings on your agent’s website and make sure he/she knows how to make a house look appealing to prospective home buyers.
  2. Don’t underestimate the value of ‘curb appeal.’ As the saying goes, you only get one chance to make a first impression. In this case that first impression is how your house looks from the street. Spend some time and money on little things that can spruce up your place quickly –colourful flowers, a coat of paint on the garage and front doors, washing the front windows or resurfacing the driveway. It’ll help buyers picture themselves living there before they’re even inside.
  3. Free up as much space as you can. Storage is high on the list for most buyers, and showing off how much space you have to offer will only make your home look more attractive. Spend some time cleaning out closets, cupboards and basements, and rent a unit off-site for your belongings if needed. It’s worth the trouble.

 

So if you’re jumping into the market with both feet, good luck! Hopefully these tips can make the experience easier and ultimately more profitable for you.

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