Many of us are interested in investing but have some concerns. Here are 3 popular myths that could be holding you back from investment success.
Myth #1 You can time the market
Timing the market is close to impossible. And studies actually show that a majority of the investment return that you are going to make over time doesn’t come from buying at the right time or selling at the right time.
But rather, it comes from proper asset allocation and diversification. So stop wasting your time trying to figure out when is the right time to buy and sell, day in and day out. Instead, choose a solid investment strategy, diversify your money and hold for the long term.
Myth #2 You need a lot of money to get started
This is one myth that holds a lot of people back. They think, “I’ll wait till next year when I have more money, then I’ll be able to dump a whole lump sum into the stock market at that time.”
No, it’s very difficult to do this. Instead, start with what you have even if it’s only $50 a month or $100 a month. Figure out how you are going to invest this amount automatically into an investment portfolio. Just set it up, so that it’s happening without you even thinking about it.
Myth #3 You can start next year
Time is absolutely critical when it comes to investing. The more time you have, the less amount of money you need if you are trying to achieve a certain nest egg amount at the end (e.g. retirement).
So if you have this myth holding you back, say “No, I’m not going to start next year. I’m going to start right now.” There’s no better time than now to start and catching up can be very difficult, if at all possible.
Hope you’ll understand now how to avoid these 3 investing myths, and be able to put into place prudent investment strategies and principles that over time, will maximise your income and assets so you could achieve long-term goals such as retirement with ease.