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.*

Which type of life insurance do you need?

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Choosing the right type of life insurance isn’t always easy and it’s not always something people want to talk about. However, having an estate planning conversation with your family about what happens after you’re gone can help them be financially prepared for what’s next.

 

Why is life insurance so important?

 

Finding the right type of life insurance is important for a number of reasons. If you want to make sure final expenses are covered, your last tax bill is paid and alleviate any debt burden from your family upon your passing then purchasing life insurance may be a smart financial decision. The proceeds from a life insurance policy pass on to your beneficiaries tax free and can help relieve financial stress during their time of grief that comes with losing a loved one. 

 

Could you imagine losing a loved one, being consumed in grief and having to deal with trying to pay funeral costs, executing a Will, visiting a notary, trying to carry out last wishes and getting into debt because of it. I certainly couldn’t. That’s why talking about life insurance with your family is so important.

 

Have the talk with your loved ones

 

Some people don’t like to talk about finding the right type of life insurance because they feel it’s a bad omen and some people don’t buy life insurance because they don’t feel they can afford the annual premiums. Based on all the information above, my question to you is, can you honestly afford not to?

 

What type of life insurance do you need?

 

Regardless of your financial situation, most people need life insurance. However not everyone needs the same amount or the same type of coverage. That’s where the assistance of a professional comes in. Talking to a financial advisor can help find the right type of life insurance that’s best for your (and your family’s) needs.

 

Getting established
Whether you’re single, have a young family, trying to build your career, or managing your first mortgage, critical illness insurance or disability insurance can help protect your income.

 
Building a business

If you’re an entrepreneur responsible for protecting your business and your family, consider protecting your company with term life insurance (for small businesses and start-ups) or permanent life insurance (for more established companies).


Approaching retirement

Getting ready to transition out of the workforce in the next few years? You may want to prepare to leave a legacy with permanent life insurance, and protect your retirement lifestyle with long-term care insurance.

 

If you want to learn more about the different types of life insurance contact me today at my direct line at (416) 571 - 0369 to find the coverage that fits your needs.

 

 

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