Let’s talk about investment myths.
Have you started investing yet?
Yes? Then think about the last time you sat down with a financial advisor and reviewed your portfolio. Best practice is no meet at least once a year in order to ensure that your investment strategy is still aligned with your goals.
No? Then 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 those 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. It can be as little as a couple dollars a week which can help you in the future. So often people feel that saving investing are just for the wealthy – and that is not true, everyone must start somewhere so why not start now?
I don’t need professional advice
Yes, you do, everyone does. This is because there 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. We do not have a crystal ball that tells us what the future will hold, no one does, but we will help explain what is happening now and how to help guide you make to your investment goals a reality.
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. 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 time to put into the research of the funds or the professional expertise of a financial advisor? Probably not. This is the real reason why paying for a professional service is worth the cost. In the end would you prefer to pay less fees or have more money in your pocket at the end of the day?
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. Give us a call or send us a quick email and we will gladly help you out.
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Wyngaert Wealth Essential
*This content was originally created by Manulife Securities for information purposes only. It has been distributed for advisor publication.*