5 Most Common Investing Myths, Debunked

Mic check mic check.. Soo hello again to our dear listeners. Let me start off by asking you,
have you ever thought about investing? Well, if yes, you should listen to us attentively for
this could help you in your investing journey.

Unsolicited advise can be difficult to come by, especially when it comes to personal finance.
Many floating theories may seem fantastic as part of a bank's marketing strategy, but they
are completely unrelated to your situation. So today, I’ll talk about five of the most frequent
investing myths, as well as the facts behind them.

Myth #1: Investing is complicated. Is it really?

This is arguably the most common myth, but it has to be adjusted slightly. Investing may be
as complicated as you want it to be but surprisingly, investing can also be as straightforward
as you want it to be.

There are plenty of individuals willing to do business with you if you want to spend time,
money, and energy researching stocks, stacking on complex derivatives, and paying for
obscure alternative investments.

In fact, it is just really simple: by merely holding low-cost index funds, you may even perform
better than most active investors.

Myth 2: Hiring someone to manage your money is a good idea. Nah uh. (HAHAHA nah uh
amp)

If you have a large sum of money and need legal assistance to figure out how to reduce your
estate tax, you might want to explore outsourcing the process. However, the vast majority of
people who simply wish to invest for the long term and pay no attention to anything else
may learn to invest on their own.

As we've previously discussed, a 1% or 2% fee on your invested assets can eat up a

considerable portion of your after-tax return and extend your working life by a decade or
two.

It's also important to note that getting guidance on a regular basis is entirely acceptable.
Make sure you've hired a seasoned CPA for tax problems, and a fee-only financial planner
who is a fiduciary at all times for financial planning. This means that the planner is bound to
function solely in your best interests, as dictated by ethical and legal rules.

Myth #3: The stock market is only for the wealthy. Ofcoure not!

Many people may believe that financial guidance is out of reach because most traditional
advisors may require significant asset levels or high commitment fees before they will even
consider doing business with you.

Most bargain brokers let you open a brokerage account over the phone with no human
intervention.
Anyone can create a brokerage account and invest in an index fund. While this advice may
appear basic, it can leave people significantly better off than they would have been if they
had never invested.

Myth #4: There isn't a good moment to buy. Then why are you still investing?

If you try to trade in and out of the market, you'll quickly realize that it's a futile exercise for
most people. If you're seeking to build a long-term financial strategy, however, investing
long-term money now is preferable to "waiting for a crash."

The truth is that you can't predict when or if the market will correct, and it could grind
higher for years before doing so. Uninvested money has missed out on growth and dividends
throughout that time period, as well as failing to qualify for long-term capital gains
treatment.

Create a proper asset allocation first. Following that, it's best to invest long-term funds as
quickly as feasible while keeping short-term funds in cash.

Myth #5: To build a diversified portfolio, you need more money. Eh.

Holding as many ETFs and mutual funds as possible will more than likely confuse you rather
than boost your returns. Total market funds, such as the Vanguard Total Stock Market Index
Fund, allow you to invest in all of the world's stock indexes with just two funds.

Having a lot of different mutual funds is inconvenient in terms of administration and

analysis. Rebalancing will be a problem if you have 100 distinct funds covering 100 different
micro-sectors.

Keep your holdings to a bare minimum so you can keep track of what's going on in your
portfolio. By limiting your interests to a modest quantity, you won't lose any diversification
benefits.

Always remember, don't let folktales ruin your life.

Financial education is the strongest defense against common investing fallacies. We can
more effectively dispel myths if we all have a common knowledge of the realities behind
prudent investing. Use the first quarter of this year to recommit to fundamental investment
principles that will hold up regardless of market conditions.

And yeah, that’s all for the 5 Most Common Investing Myths, Debunked. I hope this will
help you in your investing journey and success.