Working with the best investment firms in Vancouver can help you make wise financial decisions especially in regards to your investing portfolio. There is a lot of information concerning investing. Some of it may be true and some things you hear may be misconceptions that have been perpetuating for years. Here are some of the most common investment myths that you may have heard and the truth behind them.
- Bonds Have Less Risk Than Stocks Do
If you’re looking at the stock market on a monthly or annual basis, then the stock market may seem like a risky venture into investments. Long-term, however, the stock market has been pretty consistent. The overall trend indicates that the stock market is far less risky than many people believe.
- The Stock Market Is Like Gambling
Unfortunately, many people put off investing until much later in life because they feel that investing in the stock market is too risky. Some people have even likened the stock market to gambling at a casino. However, this is a massive stretch to make. Investing in stocks requires a “big picture” outlook, as many people who mistakenly think that stock investments are akin to gambling tend to be those that are thinking short-term.
If you’re investing high amounts of money on high-risk stocks, then absolutely stock investing is like gambling. However, with the right investment firm behind you, and by selecting a diversified fund, historical data indicates you could look forward to an 8 percent long-term return.
- History Is A Quality Indicator of Return
Remember that just because one particular investment has historically done well doesn’t necessarily mean the trend will continue. Having a diversified portfolio is so important for this and many other reasons. Make sure you’re not putting too much faith in one product so that you can enjoy a more well-rounded portfolio and inherit less risk.
- Investments Require A Lot of Money
Imagine you have $5,000 sitting in your bank account that you’re not sure what to do with. You hesitate to invest it because you don’t feel that investing that much money is worth it. Investing $5,000 won’t get you rich right away, of course. However, with an 8% annual return on a $5,000 investment made annually for 30 years, you’ll have half a million dollars for retirement at the end of three decades.
- Any Financial Professional Can Help
You may have a financial advisor helping you with your finances. There may be a lot that they can do, and you may even have them assist you with filing your taxes, doing accounting for your business, or other financial tasks. However, working with real investment firms in Vancouver is the best way to make sound investing decisions. Financial professionals like advisors or analysts you’re already working with may not have the experience to help you make the best choices.
If you’re mostly unfamiliar with investing and working with investment firms in Vancouver, Doc’s Consulting can help. There has never been a better time than now to learn about investing. We can help you get started.Investment Firms Vancouver