Discard these 4 lousy excuses for not investing today

Discard these 4 lousy excuses for not investing today

(Kailey Hagen)

There are many reasons why people avoid investing – and not all of them are bad. For example, if you don’t have any cash left, it makes sense to omit billing investments. But there are other excuses that just don’t hold water. Here are four that hold too many people back.

1. Investing is too complicated

I used to think that only people with a financial education could invest successfully on their own, but as soon as I immersed myself in it, I realized that this was not the case. There is a lot of investment that anyone with any background can use to grow wealth.

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Index funds are one of the best options for investors of all levels. These are stock packages that mimic the performance of a common stock market index, such as S&P 500. When you invest in one of them, you immediately diversify your savings. In addition, index funds are among the cheapest investments.

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There are also plenty of robo-advisors if you are not feeling well in choosing an investment for yourself. Just answer a few questions about your finances and long-term goals. Then the robo-advisor will select your investment.

You will pay fees for this service and your portfolio will not be as customized as if you had designed it yourself. But it takes a lot of work off your shoulders. All you have to do is let your money grow and check once in a while.

2. You need a lot of money to invest

With the rise of fractional stocks, it is possible to buy a piece of any company for just a few dollars. Fractional stocks work exactly as they sound. Instead of buying the entire share of the company, you buy a fraction of the share for a fraction of the cost.

Not all brokers allow partial equity investments, and those who do can set minimums that determine how small a share you can buy. However, this type of investment is becoming more common and you may be able to start as low as $ 1.

3. You have to spend a lot of time researching stocks

If you plan to invest in individual stocks, you will want to stay in the picture about company news, earnings reports and stock metrics. But not everyone is interested or time to do it. And that’s perfectly fine.

Investing in index funds, as mentioned above, is a great way to expand your wealth with minimal effort. Index fund stocks are usually at the forefront of your industry, and when your money is so well diversified, the performance of any single stock will not earn or break you.

4. You do not have access to a retirement account at the workplace

A retirement account in the workplace can certainly make investing easier, but there are plenty of other accounts that you can open yourself. If you are investing in retirement, an IRA is probably your best bet outside of a working retirement account. You can choose how you want to invest your money and set up automatic contributions this year up to $ 6,000 ($ 7,000 if you are 50 or older) so you don’t have to transfer funds manually.

A taxable brokerage account is also an option if you don’t want to wait until retirement to have access to your money. You don’t get the same tax breaks, but you can invest as much as you want, in what you want. And if you hold your investment before the sale for more than one year, your earnings will be subject to long-term capital gains tax. This can save you money compared to paying short-term capital gains tax.

Investing is ultimately a long-term strategy for growing your wealth, so the sooner you start, the better off you will be. Start small if you are still nervous about investing, and over time add more money as your confidence increases.

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