Investing is not magic. With so many moving parts and unpredictable possibilities, it’s not surprising that many investing myths are common. Individuals still pass down these misconceptions and knowledge to family, colleagues, friends, etc., thereby discouraging them from investing.
However, things are not always as they seem. Learn the truth about some of the most common investment myths, and challenge your existing investment education. Here are some myths you need to debunk
- It’s Hard to Get Started: Investing will be as complicated as you choose to make it. Investing, perhaps surprisingly, can also be as simple as you want to make it. For example, FundBae helps you start investing with as little as you can afford. With FundBae, you can save for anything, making your hard work turn into an easy win a little at a time.
- You Need a Lot of Money to Make a Lot of Money: Truth be told, you don’t need millions to start investing. All you need is to have a plan, a well thorough study about where you want to invest, or the company, and just a little money in the bank is enough to start investing. On FundBae, you can begin investing with as low as N2000. Remember this adage that says, ‘Little drops of water makes a mighty ocean’. Start from where you are today and grow your money. Even the most significant investor of all time, Warren Buffett, started his first investment with only a few dollars at eleven. He didn’t need a million dollars to make him a billionaire.
- It’s Overly Risky: There is no investment without risk. However, you can fully control how much risk you want to assume. If you’re the skittish type, there are plenty of investments, such as bonds and dividend stocks, that will allow you to make money without much risk. In all, know what you can absorb as risk to you when investing.
- It takes too much time to invest: This is also not true in today’s world. Technology has completely changed the way information is transmitted now. FundBae gives access to your capital and interest anytime you want it coupled with free withdrawals. In other words, you can save or invest on your terms. The decision is yours. All these opportunities have allowed an average investor to quickly and efficiently access information to make smarter and faster decisions.
- You Shouldn’t Invest After You Retire: Retirement is often a myth to investing. This myth undoubtedly originated from the fact that retirees can’t afford to take huge risks with their nest eggs, as they have no regular income to offset any investment losses. However, the truth is that most retirees are looking at 20 or 30 years of retirement, if not longer. Over that long time frame, owning some equities is a prudent idea, even if you’re already retired. While your overall portfolio shouldn’t be as aggressive as when you were in your 20s, eliminating equities denies you the potential for additional long-term growth. It doesn’t significantly increase your risk, as the market has never lost money over any 20-year rolling period.