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.*

Saving for your kids’ education – it’s not too early. It’s never too early.

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It’s no secret that the cost of sending your kids to college or university is rising – and has been for quite some time. So let me ask you a question, are you saving for your kids’ education and do you know how much it truly costs to send your children to college or university?


The cost of university tuition in Canada


During the 2015/16 school year, undergraduate students in Canada paid an average of $6,000 in tuition alone says Top Universities. That was up more than 3% from the same figure in the previous year, which in turn was 3% higher than the year before it.


The shocking fact is that this statistic only representations the cost of tuition. It doesn’t include the cost of resource materials, books, living costs and personal supplies. According to The University of Albert students (and their parents) can expect annual living costs for the school year to be around $16,800. That adds up to a total yearly post-secondary school cost of over $22,000.


Ways to save for your kids’ education


With current forecasts predicting that the trend of rising tuition costs in Canada will continue, it’s important for everybody with school-aged children to put saving for your kids’ education at the top of your financial goals priority list.


The best way to start saving is to talk to a financial advisor and set up a Registered Education Savings Plan (RESP). On top of a number of tax-sheltering advantages an RESP offers, there’s the instant benefit of collecting the Canada Education Savings Grant (CESG) from the federal government. In most cases, this grant equals 20% of the amount you contribute into the RESP - and can sometimes be even more. If you make your maximum contribution to the plan, you can eventually end up with $7,200 in grant contributions from the government.


There’s lots more to know about RESPs and how they can help save for your kids’ education. If you’d like to have a discussion about this plan and how education savings can fit into your overall financial goals, please get in touch with me anytime at my direct line at (416) 571-0369. 

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