Fact or Fiction? Don't let investment myths cost you
The article debunks common investing myths and encourages readers to make informed decisions rather than let misconceptions hold them back. It explains that investing is not the same as gambling because risk can be managed through a personalized strategy based on someone’s goals, timeline, income, age, and comfort level. It also emphasizes that people are never too young to start investing, since time and compounding can help money grow over the long term.
The article reinforces that investing is not only for high-income earners—small, regular contributions can still make a meaningful difference over time. Finally, it notes that while investments do not need to be held with one institution, keeping more of a financial portfolio in one place can make it easier to manage and review with an advisor. Overall, the article positions investing as an accessible, personalized way to work toward future financial goals.
At one time or another, we’ve all fallen for an urban myth that turned out to be factually false. Think humans only use 10 per cent of their brains, swallowed gum stays in your stomach for seven years, shaving makes your hair grow back coarser, and blood is blue inside the body.
Most myths are harmless, but when it comes to your finances, believing fiction instead of fact can cost you.
Join our experts as they separate fact from fiction and debunk some of the most common myths about investing, because when it comes to putting your hard-earned cash to work, knowing the facts can help build that nest egg
Fact or Fiction: Investing is the same as gambling. It's too risky
Investing may involve some risk, but no, that doesn’t make it the financial equivalent to putting it all on red and hoping for the best.
Investments come with different levels of risk, from relatively conservative to more aggressive. The trick is finding the right balance for you and that’s where a wealth advisor can help.
Everyone’s financial circumstances are different, so what works for you may not work for your best buddy. Your income, age, goals, timeline, and comfort with risk can all play a part in determining an investment strategy.
For instance, someone who’s 22 and investing for retirement decades down the road may be comfortable with more ups and downs in pursuit of long-term growth. Someone who’s 62 and hoping to retire in five years may have a very different approach. Age isn't the only consideration, though. Your goals, finances, and appetite for risk matter, too.
After your advisor comes up with a plan that’s right for you, they will also meet with you regularly—often annually—to review your portfolio and make sure you’re still content with its performance and level of risk. They’ll also consider your time horizon, whether your goals are one to five years away, five to 10 years away or more than 10 years down the road.
Investing isn’t about taking a wild bet. It’s about taking calculated risks that make sense for you.
Now that’s a fact worth investing in.
Fact or Fiction: I'm too young to worry about investing now
When it comes to investing, time can be your one of your new best friends
You’re never too young to invest nor, for that matter, are you ever too old. But the earlier you start, the more time your money has the potential to grow. And you don’t necessarily need a lot of money to get going.
That’s thanks, in part, to the power of compounding. When your investment earns a return, those earnings can remain invested and potentially earn returns of their own. Over the years, that snowball effect can make a big difference.
Of course, investments don’t travel in a straight line. Their value can rise and fall along the way, and returns aren’t guaranteed, but when you’re investing for a long-term goal, it’s the bigger picture, not every daily bump in the road, that matters.
Whether you’re saving for retirement, your first home, or another big financial goal, starting earlier gives your money something you can’t buy later: time.
Now that’s a fact that grows on you.
Fact or Fiction: Investing is only for people with high incomes
No, you don’t need a six-figure salary—or a winning lottery ticket—to become an investor.
You can start with an amount that easily fits your budget and build from there. The key is finding the balance between enjoying your money today and putting some aside for the things you’ll want or need tomorrow.
Maybe that’s a first home. Maybe it's retiring at 60 and travelling the world. Or perhaps it’s simply building a bigger financial cushion for whatever comes next.
Even relatively small, regular contributions have the potential to add up over time. As your circumstances change, you can adjust how much you invest and where that money goes.
The important part isn’t necessarily how much you start with. It’s starting.
Now that’s a fact that adds up.
Fact or Fiction: I need to keep all my investments with one bank or credit union
Your investments don’t all have to live under the same roof but keeping them together can make life a little easier.
When you meet with a wealth advisor, they’ll want to understand your entire financial picture before making recommendations. That means looking at what you have in savings and deposits, where you’re already invested if you are invested, your short- and long-term goals, your timeline and how content you are with risk.
If your investments are scattered among several financial institutions, getting that complete picture can take a little more legwork. Keeping more of your financial portfolio in one place can make it easier for both you and your advisor to see exactly where you stand.
It can also make managing your money more convenient if you want to move funds between investments and your chequing or savings accounts.
So, while your investments don’t have to live under one roof, sometimes having the whole financial family together just makes sense.
Now that’s a fact that brings it all home.
Fact or Fiction: Separating Financial Truth from Tall Tales is an ongoing series that debunks common financial myths.
