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.*

4 tips for a relaxing vacation

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It’s that time of year again. Canadians from all provinces and territories are packing their suitcases, escaping the cold grip of winter and heading to sunny destinations in paradise.

Tourists can maximize vacation relaxation by turning off technology, protecting yourself with a little planning and following your natural rhythm when it comes to rest.

 

Here are four ways to maximize relaxation on your next vacation:  

Step away from technology

Technology reminds us of the harsh realities of our day-to-day lives. While on vacation, take a tech-detox and let yourself drift away.

Turning off electronics can help you disassociate from reality and forget about all the pressing to-dos at home.

 

This Reader’s Digest article explains all the benefits of unplugging on vacation.

Plan your trip in advance

Unless you’re the type of person who enjoys making plans on the spot, planning your activities ahead of time can help have a stress-free vacation. In tourist areas, scammers and thieves can take advantage of travelers by overinflating prices. Checking ratings, reading reviews and comparing prices will help save money on activities and excursions.

Follow your body clock

Your vacation is an opportunity to fall in tune with your body’s natural rhythm. There’s nothing more relaxing than dozing in and out of sleep as you please, especially if you’re doing it on the beach.

 

According to Sleep.org, following your body clock promotes better sleep and reduces anxiety. When you go back to work you’ll feel rested and alert.

Stay within a budget

Minimize your stress when returning to the real world by setting a spending budget and sticking to it. The relaxed atmosphere while on vacation can let travelers be a little bit too worry free about your money.

 

The last thing you want to do is ruin the memories of a great vacation with an empty bank account and maxed out credit card when you get back home.

 

If you’re migrating away from winter towards a sunnier destination, these tips can help increase relaxation while on vacation. If you’re dreaming of a trip this winter, contact me to find out how I can help set a realistic travel budget and help you stay debt free long after the vacation is over.

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