Investing 101: Squashing Objections

We’ve talked about why investing is so important, we’ve covered how to do it if you’re not sure where to start, and today we’re dealing with the most common reasons people cite for not investing. After this, no more excuses!

Objection #1: “I’m young, investing is for older people.” The truth is the younger you start, the better. Just check out this comparison here. The more time you have to invest, the harder compounding works for you.

Objection #2: “I don’t have enough money to invest.” Most investment accounts don’t have a minimum balance. You can start with as little as $5 if you want to. Take the first step now, worry about how much you can invest later.

Objection #3: “I’m worried about what happens to the money I’ve invested if I leave my job.” Your 401(k) and the money in it are yours no matter what.

Objection #4: “The stock market is too high, I’ll wait until it goes down.” Timing the market (waiting to buy low and sell high) is difficult, to say the least. For most people who invest (rather than actively trade) time in the market is considered to be more important than timing the market. Dollar-cost averaging is a method of investing a small amount every month to smooth out the effect of markets being “too high” and can help beginner investors eliminate the stress of trying to pick the right time to invest.