4 Reasons You Are Afraid of Investing

with No Comments

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!


Read all the Kittenomics here!

To read more about this topic check out Essential Financial Advice for College Graduates

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

← Previous

View All

Follow Megan Russell:

Chief Operating Officer

Megan Russell has worked with Marotta Wealth Management since 2005. She loves to find ways to make the complexities of financial planning accessible to everyone. Her most popular post: The Complete Guide to Your Washing Machine