3 investment myths that are getting in the way of your financial goals
Age is just a number. And no matter what the number is when you start your investment journey, there are smart decisions that can benefit what is happening in our lives at this moment.
“If you’re in your 20s or just retired, maybe people have discouraged you from investing because ‘you’re too young’ or ‘you’re too old.’ However, age has nothing to do with investing. The earlier you start, the better your chances of getting a bigger return on your investment over time. Therefore, opting out of investing based on age can hinder your financial goals. Don’t let age dictate your investment decisions,” says Tom Kesternen, Chartered Financial Analyst at The Guaranteed Loans.
If you set up an automatic contribution of $50 when you’re in your 20s, that could add up to more than $240,000 in 50 years (assuming you earn a 7% return during that time), says Chloe Elise, a certified financial coach and founder of Deeper Than. money
You don’t want to buy into the myth that if you’re close to retirement, you should drastically reallocate your portfolio to safety.
“From an actuarial perspective, most of us will live at least another 10 to 15 years after retirement. If investors care too much about safety, they miss out on the growth needed to support their purchasing power. A realistic view of future needs generally requires maintaining a significant percentage of portfolio growth even as we age,” says Ilen Slatko, founder of DSS Consulting, a financial coaching firm.