Break Through These Damaging Myths
Investment Myth 1
Cash is Always Safer than Stocks
Myth: The markets are volatile, and you lose in the long run. It's better and safer to keep cash and invest in savings, instead of buying stocks.
Fact: Markets do fluctuate. But, since 2009, the S&P 500 has seen average gains of about 15% annually (and it's risen more than 70% of the time over the last century).4 Keeping your savings in cash means growth won't necessarily keep up with inflation. Over the long term, that could reduce the value of savings, whereas stock investments have far more potential to grow, earn, and work harder for you.
Investment Myth 2
I Need $X Before Investing
Myth: I can't think about investing until I have a certain amount of money (only wealthy people can afford to invest).
Fact: If you want to invest or start building wealth for the future, you don't have to meet any financial threshold to make it happen. There are all sorts of opportunities and flexible options to fit different needs and goals.
Investment Myth 3
Investing in the Market is Like Gambling
Myth: The market is like a casino, and investing means I'm really just blindly "betting" on "winners" — and that I could lose it all at any second.
Fact: Although investing always involves some risk, you CAN manage risk and dial it in based on your own risk appetite. Gambling is a flashy, fast, zero-sum game — there's lots of action, and the house usually wins. Building an investment strategy based on your goals and personal circumstances is a lot more like farming.
Investment Myth 4
I Don't Have Time to Invest
Myth: Investing is time-consuming. I don't have time to study reports and stock screens. And I don't have time to be trading stocks hourly, daily, or weekly.
Fact: You don't need to carve out a bunch of time to invest and build your portfolio. Working with a professional means you're getting help, guidance, and the benefit of experience and professional tools.
Investment Myth 5
When the Market's in Trouble, It's Time to SELL
Myth: If stocks stumble, it's time to get out ASAP. Don't stick around and wait it out. Cut your losses and RUN.
Fact: This myth is one of the most costly because panic selling can be a BIG mistake. In fact, bailing on investments and selling as soon as the market takes a downturn may be the worst thing you can do if your long-term goals haven't changed. That's because you can lose out on the recovery — and you may wait too long to get back into the markets after you've pulled out.5
Investment Myth 6
If I Could Only Pick the "Right" Stock...
Myth: There are "winners" out there, and I just need to choose the "right" stock to do well in the markets.
Fact: Making millions on a single stock pick makes a great movie, but it doesn't have much to do with reality. You don't have to cherry-pick stocks and look for that dark horse or unicorns to build wealth. Instead, put the real unicorns to work for you: time, consistency, and a solid investing strategy.