August 24, 2017

4 Reasons You Are Afraid of Investing

Kittenomics #30

 ”I don’t want to watch my account value regularly change.” Then ignore it. The long-term trend is upward. If you rebalance your account once a year or a quarter, you’ll see your accounts go up, not up, down, up, and up.

“I might lose money.” When you keep your money in a savings account, you are guaranteed to lose your money to inflation.

“No, I might lose all my money.” If you diversify, this is very unlikely to happen. Have a global portfolio spanning the asset classes and you’ll have hedged yourself against one sector under-performing. Furthermore, you could begin by weighting stability a little more and growth a little less than traditional.

“What if I pick the wrong investments?” So long as you are picking investments that are publicly priced and traded, you can’t make too much of a mistake. Furthermore, David John Marotta has already provided a recommended portfolio for new investors he calls his “Gone Fishing Portfolio.”

This kitten is not afraid. She lives boldly while her portfolio grows over the long term. Way to go, kitten!


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Photo taken by Nick Jewell and used here under Flickr Creative Commons.

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About Megan Russell

Megan Russell+ is the Chief Operating Officer for Marotta Wealth Management. She studied Cognitive Science at the University of Virginia and now specializes in explaining the complexities of economics and finance. Megan loves formal logic, creative writing, and kittens.

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