For many people, the concept of “investment portfolio” is something only available to certain types of people. And often they don’t include themselves in that group. Nevertheless, having a healthy investment portfolio is within reach of anyone who sets their mind to it.
“Investment myths abound, and people need to see past them,” said Richard Cayne of Meyer International in Bangkok Thailand. “Almost anyone can do more than contribute to a 401k, provident fund, or pension plan.”
“A lot” is a relative term. You may have to start with saving up small amounts, but with discipline and proper planning, you will see your portfolio bloom. There are many programmes for individual investors that allow you to sow the seeds for growth. Working with a financial advisor, you can evaluate your budget and you may be surprised to find you have more to work with than you think.
If you think that only the riskiest investments will payout, you may need to re-evaluate your strategy. Of course, every investment has some level of risk, but you shouldn’t treat your investments like you’re at the roulette wheel or craps table. Look for long-term, steady growth as well. We’ve often discussed diversification – some risk is good, but you don’t want to bet the bank on it.
It is absolutely importance to analyse investments before committing your money. But you should be thorough. Just because a stock or other instrument has seen its value rise in the past, this does not mean that it will continue in the future. There are many other indicators as well as internal and external factors that contribute to an investment’s success or failure.
This is especially relevant today. As the global health crisis as sent shockwaves throughout the world’s economies, people have been watching their investments lose value. And you may want to join in on the sell-off. But much of this loss may stem from people panicking. As discussed in other articles, when markets are in turmoil, the automatic response should not be to sell. It is time to look for opportunities.
These are just a few myths we hear people use as an excuse for why they aren’t investing. It is okay to be nervous, but that should not hold you back from creating a nest egg for your future. And there is no need to do it alone. Find a trusted financial expert, like Richard Cayne, who can help you work through your doubts and create a plan that suits you.