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.*

6 Additional Costs That Come with Home Ownership

Published by on

When it comes to home ownership, there’s a lot to wrap your head around. But, understanding basic financial concepts can pay off big time in the long run in the form of savings.

 

When you’re looking at buying a home, there are a lot of expenses to consider in addition to the mortgage payment. To help better understand what to expect when buying real estate, here are some additional costs and factors to take into consideration.

 

CMHC mortgage insurance

If your down-payment is less than 20% of the price of your new home, you’ll need to have Canadian Mortgage Housing Company insurance on your mortgage. CMHC protects homeowners and their lenders against possible financial losses in the case of default and non-payment.

 

The cost of premiums range from 2.8% to 4% of the total value of your mortgage and you can find more details about CMHC insurance on their website.

 

Home insurance

Purchasing home insurance to protect your property, the home structure and your personal belongings is a good idea. Home insurance rates vary depending on where you live and a number of other factors such as the age and size of your home.

 

Home inspection

When making an offer to purchase a new home it’s custom to include a home inspection as a condition of acceptance. Before investing a big chunk of your personal savings into home ownership it’s a smart idea to have a professional look at the structure of the home to ensure there aren’t any big problems brewing below the surface.

 

Property survey

If you’re planning on building a fence or an extension to your new home, you’ll need to order a property survey. The cost can be up to $1,500 and it provides information on the size and boundaries of your property and land.

 

Legal costs

Home ownership isn’t as simple as: you find a house you love, make an offer, get a mortgage and move in. There are real estate agents, notaries and financial advisors involved. Plan to set aside up to $2,500 for legal and closing costs when buying your home.

 

This fee covers various expenses such as the cost of the land deed transfer from the previous owner to yourself and registration of the title.

 

Moving

If moving was easy than everyone would do it. When it comes to professional services, sometimes the cost is worth the expense. Moving expense are a variable cost depending on who you hire, but new homeowners should set aside at least $1,500 for moving expenses.

 

Most moving companies price their services based on weight, time and manpower. Shop around to get at least three quotes and ask the moving company to visit your current residence to take an inventory and provide an accurate quote.

 

Home ownership is a milestone in your life, it’s also a big financial commitment – that’s why it’s best to be prepared. A financial advisor can help you budget and save for your first (or next) home. Contact me today at my direct line 416 571 0369 and let’s create a plan to help you achieve home ownership.

 

Sign-up for our newsletter

Sign-up

*Required fields