When it comes to our financial life, excuses often show up as investing myths—the beliefs that hold us back from taking action in the stock market.

You know what they say about excuses… 

Keep it clean, folks!

But it’s true what they say — everyone has one. A justification for why we are, or aren’t, doing that particular thing. When it comes to our financial life, this often relates to the actions we are or aren’t taking to invest in the stock market.  

After over a decade working with clients, I’ve heard it all. The throughline is that these people are clinging to fear of the unknown, and as a result, they’re missing out big-time on an equally big opportunity to invest in themselves and their future. 

Fear-based thinking about the stock market is ingrained in our societal conditioning, so I don’t blame my clients! Instead, I seek to educate and empower them by debunking common investment myths and setting my clients up for long-term financial success. 

And now, I’m here to do the same for you!

Myth #1: You need a lot of money to invest in the stock market

There is no specific dollar amount you need to have in your bank account as a prerequisite for investing. What’s most important is that you start as early as you can and invest as often as you can. Building the habit of investing — even if it means starting with small and incremental amounts — will be a gamechanger. Start where you are. 

A quick note about high-interest debt: If you currently have high-interest debt, paying this down needs to be your top priority, before investing. If I’ve said it once, I’ve said it a thousand times — you simply cannot compete with a 15%+ interest rate. Do what you can to streamline and accelerate your debt payoff process, then shift these funds toward a more lucrative venture — investing in your future.  

Myth #2: Investing is too complicated for the average person to understand.

This is one of the most common excuses clients give for why they aren’t currently investing more in the stock market. There’s too much to know! It’s over my head! They lack the self-confidence necessary to take the first step, and so they stay right where they are, on the periphery of the dream financial life that they want so badly to be their reality.

I’d argue that the process of investing, at its core, is actually the simplest way in which to build wealth. Investing in the stock market has never been as accessible as it is today. It may be new or unfamiliar to you, but that doesn’t mean it’s too difficult. You’re just not an expert, YET. Do the work today to educate yourself about investing in the stock market. You’ll thank me (and yourself!) later. 

Myth #3: Only wealthy people can be successful at investing. 

I’m going to get straight to the point with this one. Investing is an option for anyone and everyone who is willing to show up and commit to the process. Building wealth doesn’t happen overnight, regardless of your current income level or net worth. Proactively educate yourself, stay engaged, make informed (versus reactive) decisions, and embrace the long game.

In my opinion, the underlying current at play here has more to do with scarcity and comparison mindset than anything else. Don’t let these kinds of unhelpful thought patterns hold you back in your financial life! Shift your money mindset and watch your wealth multiply.

Myth #4: I need to hire a financial advisor to invest in the stock market. 

A financial advisor can be a wonderful resource for extremely high net worth individuals (often involving additional financial planning services) and those who prefer a very hands-off approach to investing. That said, it is not necessary to hire a financial advisor to start, or continue, investing in the stock market. 

There are many incredible platforms for retail investors like yourself to access independently like Fidelity, Vanguard, Charles Schwab In fact, your approach will most likely mirror the exact money moves a potential financial advisor would make, without the fee! For most people beginning their investment journey, all it takes is a little education, and you’ll be setting yourself up for financial success in no time. 

Myth #5: If I invest in the stock market, I risk losing my life savings! 

First off, history has shown us that the longer you stay invested, the less likely you are to lose money.

Long-term investing, with a time horizon of greater than 10 years, is the perfect recipe for financial growth, appreciation, and security. You have the time to wait out the short-term volatility, and because of that, you will likely benefit from significant long-term compounding growth.

Warren Buffett said it best: “The stock market is a device for transferring money from the impatient to the patient.”

When it comes to day trading and constantly buying and selling individual stocks, I have no interest in chasing market trends—it’s a high-risk gamble that rarely pays off long-term. 

Friendly reminder: You do not “lose” any money until you sell. You may have an investment account that fluctuates continuously with the market, but it is neither a gain nor a loss until you sell those investments.

Myth #6: Investing is too time-consuming

Investing does not require a lot of time. In fact, you could easily open an investment account at a brokerage firm, set up a monthly automatic transfer, and select your investment allocation, all within 20 minutes.

Long-term investing does NOT require you to frequently buy and sell stocks, spend hours each week researching your investments, or stare at your account performance metrics for hours on end. In fact, I strongly advise against any and all of these behaviors! 

Time in the market > Timing the market. Investment success does not equate to how much time you actively spend on the process, but instead with how much time your investment dollars are sitting in your account(s). 

Myth #7: I need to be good at picking individual stocks to be successful

You don’t have to choose individual stocks or make a bet on any one particular investment. Index funds were created in the 1970s, and they still are one of the best ways to invest — for both beginners and more experienced investors — today.  

Investing in Index Funds is one of the cheapest and easiest ways to get exposure to the market as a whole. They have low fees, provide diversification, are low-maintenance, are tax-efficient, and can be a meaningful part of any investor’s allocation (regardless of their level of wealth).

Index funds do all the work for us as an investor. They provide diversification and broad exposure to the market at a fraction of the time and expense it would take for you to do it yourself or hire someone to do it for you. A win-win! 

Myth #8: Investing in the stock market is too risky!

Yes, as with all things in life, there is a certain amount of risk associated with investing in the stock market. It is an unchangeable reality that there will be periods of time when the market is volatile. That said, there is also risk in keeping all your assets in cash as you may lose purchasing power over time due to inflation.

The key is to look at what you CAN control — harnessing a healthy investing mindset and making informed decisions about the amount of risk you take on. You don’t have to build an allocation of investments that is 100% stocks with more inherent risk associated with it. You can bring in other asset classes — like fixed income — that will reduce your earning potential but also reduce your risk. If you want less risk, that doesn’t need to mean ALL cash — it could simply mean fewer equity/stocks and higher-risk alternatives.

Myth #9: I’m too old to invest in a meaningful way

If you have a time horizon of greater than five to seven years, you’re still right on time to start your investment journey! 

I could even make a compelling argument that if you are in your 70’s or 80’s — with some additional cash and wealth on the side that you will not need or want — there are some strategic options for investing that money or gifting those assets and enriching the next generation. 

Bottom line — it’s never too late.

Myth #10: Small investment amounts won’t make a big enough impact.

This one always gets to me!

Consider this: Let’s assume you invested into an S&P 500 index fund during the time frames noted below and received an average annual rate of return of 8%. 

• $20/month from age 20 to 60 = An investment of $9,840 over 40 years that grows to $73,000 at age 60
• $100/month from age 20-60 = An investment of $49,200 over 40 years that grows to $364,000

Sure, an individual investing $1,000 per month will likely end up with more in their investment account over a 40-year period than someone who invests $20 per month. But comparison is the thief of joy and a poor measuring stick for fulfillment. True success is found in the path that you choose with the money you have available now to grow and expand into the future you want, beyond the boundaries of where you would have found yourself had you done nothing. 

Let’s Debunk These 10 Common Investing Myths

Don’t let these investing myths hold you back!

Start where you are, with the means that you have, and make small, incremental changes over time. The momentum will take you places you never thought possible.

Looking to invest in yourself AND the market? My tailored programs for ambitious wealth creators might just be your perfect fit! Knowledge is power, and I’m here to equip you with the know-how, skillset, and tools to step toward lasting financial change.