You may feel you need more money, more knowledge or more time. Or perhaps you’re simply wary of taking risks with money you’ve worked hard to build.
These are understandable concerns, but some of the beliefs that hold people back from investing – or reviewing their existing investments – are based on outdated ideas.
While doing nothing can feel like the safest option, there is a risk in leaving too much money sitting in cash for too long. Inflation reduces what your money can buy over time, so keeping everything in cash could mean your wealth gradually loses spending power.
Your Finli Planner can help you review whether your existing investments and cash savings are still working towards your goals, and whether there are opportunities to put more of your money to work.
So, what are the common investment myths worth challenging?
Investing is only for wealthy people
You don’t need a large lump sum to invest, and you don’t need to have everything figured out before reviewing your options. Regular contributions, even relatively modest ones, can build up over time.
If you already invest, it may be worth considering whether your current contributions and investment arrangements still reflect your circumstances and priorities. The important thing is to have an approach that fits comfortably alongside your other financial commitments, including maintaining an appropriate emergency fund.
Your Finli Planner can help you understand how your existing investments, savings and wider financial plan fit together, and whether your current arrangements remain appropriate for your goals.
Investing is too risky
Investing does involve risk. Your investments can fall as well as rise, and you could get back less than you put in, but keeping all your money in cash isn’t completely risk-free either.
The longer your investment timeframe, the more opportunity there is to ride out short-term ups and downs and benefit from potential long-term growth.
The key is understanding how much risk you’re comfortable taking and selecting investments which reflect your goals and circumstances. If you already have investments, it’s worth checking that this remains the case as your life and priorities change.
Your Finli Planner can help you assess this and make sure your investment arrangements remain appropriate as your circumstances change. You don’t need to make those decisions on your own.
I need to know a lot about investing
You don’t need to become an expert before you start investing, and you don’t need to manage every decision yourself.
Investing can seem full of jargon, but the principles are often simpler than they first appear. Diversification, investing regularly and taking a long-term view can all help you build a more
Whether you’re reviewing your existing investments or considering what to do with money currently held in cash, you don’t have to make any decisions alone.
That’s where your Finli Planner can help. Their expertise is there to guide you through the investment process, helping you understand your options and make informed decisions without needing to become an investment expert yourself.
I’ll wait until the right time
This can be one of the hardest myths to overcome. Markets move constantly, so it’s tempting to wait for the ‘perfect’ moment to invest, but nobody knows exactly what markets will do next.
Waiting can become a form of inertia. If you already have money set aside to invest, or you’ve been meaning to review your investment arrangements, putting it off could mean missing opportunities while your money remains on the sidelines.
The answer isn’t to rush into investments. It’s to have a plan, understand your goals and take action when you’re ready.
If you’ve been meaning to review your investments or have cash that could potentially be put to work, your Finli Planner can help you consider your options and decide what, if anything, may be appropriate.
I can trust what I see online
There’s never been more investment information at our fingertips, but that doesn’t mean it’s reliable. Social media, online communities and AI can make investing appear quick and easy, but they can also expose you to misleading information and scams. Any information provided is generic and not tailored to individual circumstances and requirements. The Financial Conduct Authority (FCA) has warned that younger investors in particular can be vulnerable to illegal financial promotions and misleading investment content online.
Be especially cautious of anyone promising high or guaranteed returns, creating a sense of urgency or asking you to invest through an unfamiliar platform.
Your Finli Planner has the expertise to help you navigate investment decisions, assess the risks and select investments that are appropriate for you.
So, could you be holding back unnecessarily?
Investing is about giving your money the potential to grow over the longer term, while making choices that fit your goals, circumstances and attitude to risk. And remember, your financial circumstances, priorities and attitude to risk can change over time.
If you’ve been putting off investing, reviewing your arrangements or exploring your options because of something you’ve always believed about it, perhaps it’s time to question whether that belief still holds true.
Your money has a job to do. Understanding what that job is – and having the right expertise to help you manage it – can help you put it to work with greater confidence. If you’d like to explore whether your investments or wider financial plan could benefit from a review, talk to your Finli Planner.
The value of investments can go down as well as up, and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
