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 Financial Resolutions for 2018

Published by SUNIL HEDA on Apr 18, 2018

The new year is a time to reflect and improve on ourselves. Many Canadians choose to make new year resolutions and financial goals are usually at the top of the list.    These tips will help you set (and... Continue reading

Which type of life insurance do you need?

Published by SUNIL HEDA on Jul 31, 2017

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... Continue reading

How to live happily ever after with your money

Published by SUNIL HEDA on Jul 28, 2017

According to a recent study by Ameriprise, nearly 70 per cent of couples say they’re living happily ever after because of good communication with their spouse when it comes to money. However, many couples... Continue reading

Why Mental Health Matters for Your Money

Published by SUNIL HEDA on Jun 27, 2017

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... Continue reading

6 Additional Costs That Come with Home Ownership

Published by SUNIL HEDA on Jun 23, 2017

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 ... Continue reading

Here comes the sun it’s time to plan your summer vacation

Published by SUNIL HEDA on May 27, 2017

Now that we’ve hit the month of May, summer vacation season is just around the corner. For those of you who want to do some traveling this summer but haven’t quite decided where you want to go, I’ve found... Continue reading

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

Published by SUNIL HEDA on May 15, 2017

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... Continue reading

Helping your kids increase their financial literacy

Published by SUNIL HEDA on Apr 11, 2017

“Since I graduated from high school, not one person has asked me to find the value of X.”   We hear this comment all the time, and it’s generally meant as a joke, but it echoes what many think about our... Continue reading

Baseball’s back!

Published by SUNIL HEDA on Mar 30, 2017

Major League Baseball’s Opening Day. There’s something about the first pitch of the season that makes it feel like spring is finally here, even if the weather suggests otherwise.   If you’re a Blue Jays... Continue reading

Budget 2017 - Less is more... more or less

Published by SUNIL HEDA on Mar 27, 2017

Finance Minister, Bill Morneau, delivered the majority Liberal government's second Federal Budget on March 22, 2017. There were no increases in either personal or corporate tax rates. Like last year, ... Continue reading

Sign-up for our newsletter

Sign-up

*Required fields