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.*

Why Mental Health Matters for Your Money

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Did you know that 1 in 5 people face mental health issues during their lifetime? That means the odds of you, a family member or someone you know being affected by mental health are high. Issues related to mental health can come in a variety of forms such as anxiety and depression and they don’t only affect a person’s sleep, daily functionality and relationship – they also affect your money.

 

The cost of struggling with mental illness

 

According to Manulife, 44% of long-term disability claims made by employees are mental health related. But while getting help can come with a steep price tag, providing vital care for those who need it is worth its cost in spades.

 

Untreated depression can cause a variety of long-term health complications from chronic illnesses such as heart disease and pain perception to trouble sleeping. The cost to treat long-term illnesses, without health insurance, can quickly add up – and become another source of stress and depression.

 

Symptoms of anxiety include unease and a change in personality traits such as compulsive behavior or panic attacks. Compulsive behavior can lead to impulse purchases and binge-spending. When someone feels out of control internally, it can easily crossover to external actions.

 

How can you help someone affected by mental health?

 

The best way to help someone who is suffering is to be open to the conversation. Unfortunately, even though mental health affects a lot of Canadians, there is still a stigma relating to the condition.  For that reason, some people are reluctant to talk their feelings and express what they’re going through. However, if you’re unable to talk about the causes of stress, anxiety and depression, how will you get the professional help you need to get better?

 

The first step is to encourage your friend or family member to seek professional treatment. According to Depression Hurts “the goal of any treatment is to help you feel more like yourself again so that you are able to enjoy the things you used to. To do so means finding the right treatment to address and alleviate all of your symptoms. Also, the goal of treatment goes beyond just getting better it is about staying better.”

 

Your employer can help too

 

Offering extended mental health benefits is one way that employers can encourage employees to seek help. Employers can also partner with leading mental health organizations to keep employees informed about the causes, effects and symptoms of mental health issues. This will help spot the signs from onset and detection can enhance treatment options.

 

If you believe in positive mental health, review your health insurance policy to see if you and your loved ones are covered. This is the first step in improving your quality of life – physically, mentally and financially. If you have questions about health, critical illness or long-term disability insurance, please contact me anytime anytime at my direct line at (416) 571-0369, I’m happy to help.

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