Breaking Free from Financial Fear
As a self-proclaimed pinch-penny, I’ve always struggled with the idea of investing. The thought of risking my hard-earned cash sends shivers down my spine. But I’ve come to realize that playing it too safe can be just as detrimental to my financial future.
The Safety Net Isn’t Enough
I’ve been diligent about building up my emergency savings and setting aside funds for unexpected expenses. However, I’ve learned that these short-term solutions won’t cut it when it comes to achieving bigger goals, like retirement. The paltry interest rates on my savings account aren’t going to get me there anytime soon.
The Long-Term Conundrum
My 401(k) is a great resource, but it’s not exactly accessible in the near future. I’ve got to wait until I’m 59-and-a-half to withdraw my funds without incurring penalties. It’s a solid long-term strategy, but what about the in-between goals, like saving for a down payment on a house or funding a dream vacation?
Investing: The Scary Unknown
Investing seems like the obvious solution, but it’s a daunting task. I don’t have the time or expertise to analyze the stock market and make informed decisions. And hiring a Financial Advisor can be a costly and intimidating prospect.
You’re Not Alone
A 2016 Bankrate survey found that only one in three millennials is investing in the stock market. The top reasons for not investing include fear of losing money, lack of trust in financial advisors, and uncertainty about getting started.
Embracing Risk and Reward
The truth is, investing does come with risks, but it also offers potential rewards. By starting early and diversifying your portfolio, you can increase your chances of success. And with the power of compound interest on your side, the younger you start, the better off you’ll be.
Technology to the Rescue
Online investment managers, like Wealthsimple, offer a solution for those of us who are intimidated by the investment process. These “robo-advisors” use algorithms to manage your portfolio, taking the guesswork out of investing. You can set your goals and risk tolerance, and their experts will handle the rest.
A More Accessible Option
Wealthsimple offers socially responsible investment portfolios and options that comply with Islamic investing principles. Plus, with a small initial investment, you can get started right away. And, as a bonus, you’ll get $50 cash when you sign up.
Taking the First Step
If you’ve got a decent emergency fund in place, it’s time to consider dipping your toes into the investment waters. Do your research, take it slow, and remember that it’s your money and your future on the line. A little risk could lead to a solid reward.
Leave a Reply