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.*

Baseball’s back!

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Major League Baseball’s Opening Day. There’s something about the first pitch of the season that makes it feel like spring is finally here, even if the weather suggests otherwise.

 

If you’re a Blue Jays fan, there’s plenty to be excited about this year. The team’s got most of its starting pitchers back, and most of last year’s solid lineup as well. Here’s hoping this season brings another trip to the playoffs and maybe – just maybe – a berth in the World Series.

 

If you’re a Yankee or Red Sox fan, which everybody seems to be if they don’t pull for the Blue Jays, you have a lot to be excited about too. 2017 is shaping up to be a good year in the American League, and will probably feature a tight pennant race right down to October.

 

When I was thinking about the return of baseball and doing some reading online, I found these pretty interesting facts about the game – in particular, from a finance/investing perspective.

 

In 2017, the sport’s highest paid player is Clayton Kershaw of the Los Angeles Dodgers. This year, he’ll earn a cool $33,000,000. That’s roughly one million dollars for each game he’ll pitch. For comparison’s sake, in 1930 baseball’s top-paid player was Babe Ruth. His salary? $80,000.

 

However, while that may look shabby compared to Kershaw’s 33 mil, keep in mind that the Babe was making more than then-U.S. President Herbert Hoover. When a reporter asked the Sultan of Swat (he was a man of many nicknames) what he thought of making more than the President, Babe replied, “I had a better year than he did.”

 

If you collected baseball cards as a kid – or even if you still do - you may be interested to know about the most valuable card in existence today. It’s a 1909 card of Honus Wagner, produced by the American Tobacco Company and distributed in cigarette packs. Perhaps you’ve heard of the card; it was famously purchased at auction by Wayne Gretzky in 1991…for a mere $451,000. Since then, that same card has changed hands a couple of times, most recently bought by Arizona Diamondbacks owner Ken Kendrick for almost $3 million.

 

The card is that valuable because of its rarity. Wagner demanded that production of the card be stopped – although his reasons for doing so are still being debated. At any rate, it’s made some collectors very, very wealthy, and made a lot of people comb through their attic looking for any hidden gems in their own collections!

 

So if you’re a baseball fan, enjoy the season and I hope it turns out the way you’d like. If not, just remember the classic slogan used by Brooklyn Dodger fans:

 

“Wait ‘til next year!”

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