- Early in my career as a financial planner,
I remember meeting with a young lady who hadn't
invested any money at all.
When I asked her why she hadn't invested,
it turns out that it was because she was listening
to friends, coworkers, family members that cautioned her
how dangerous it was to invest in the stock market.
Because if you invest in stock market,
your going to lose all your money,
and that's what she believed.
And because she was listening to these lies
that were being told to her, she'd already missed out
on thousands and thousands of dollars
on compounding interest.
Now chances are, you've been told a similar lie
about investing, that's preventing you from taking action,
and today we gonna find out what are six investing lies
that have been told to you?
We're gonna find out what these lies are,
we're going to debunk them,
so that we can get you investing and start hacking
your wealth today.
So let's find out what these six investing lies are
right now.
(Upbeat jazzy intro)
- Alright, the first investment lie that you have been told
is that investing is risky.
Now let's go ahead and just get this out of the way.
Duh.
Yes, investing is risky, I mean that's the whole point right
most people don't invest because they can't stomach the risk
but if everybody did invest,
whether it is in the stock market, or in business ideas,
or whatever, then we would all be a lot better off.
But there is a risk involved.
Now does that mean you are going to lose everything?
Absolutely not, now you have to realize, like,
there are many different types of investments
that you can do.
So I think about the young lady that didn't invest,
cause she was listening to her family members,
and her coworkers, her friends, that she shouldn't invest
because it's risky.
Who knows what types of investments
that these people were in,
chances are they didn't fully understand what they were in.
They couldn't even explain to her, like,
why they lost money or how they lost money,
they just know that they lost money.
But yes, market crashes do happen,
we do have bear markets, we do have corrections,
we do have pullbacks.
That's just part of the general cycle
of how the stock market works, but goin back to 2008,
which was the financial crisis,
the worst market since the Great Depression,
and guess what the market has done since then.
Oh it's only averaged over 324% return.
You heard that right?
324% return, since that great recession,
and if you look at market returns over the long term,
there are so many different numbers out there.
We can go as high as 12%, we can go 10%,
but a safe number, and there's a lot studies that
support this, is that 7% return is achievable
and has been done.
Investing lie number two is, I will lose all my money,
and I kinda mentioned this is number one investing lie.
Are you really, are you really, going to lose
all of your money in the stock market?
I mean, unless, your like watching these guys
telling you to buy Crypto, buy Bitcoin.
- I've been in the business and finance game for a long time
but this crypto thing is new!
Part of the reason there's big profits in it,
is not everybody understands it.
You need to know this stuff, in fact,
yesterday I did a live call,
if you're watching my Instagram or my Facebook Live,
and I brought in one of the top Crypto experts in the world
and he recommended, one small Cryptocurrency,
and it's doubled in the last 24 hours.
- But this is like, seriously, one of the most
funniest questions that I get asked, because,
okay in theory, can you lose all your money?
I mean, I guess in theory you could, has that ever happened?
The only time that somebody has lost all of their money,
in the stock market, it's because they put their money
into something, all their money into one thing,
or put all their money into something they had no idea
what it was and how it made money,
and what the company was doing, like.
It's people that were taking way too much risk
and didn't understand how much risk they were taking,
those are the ones that lost all of their money.
But generally speaking, no, your not going to lose
all of your money by putting it in the stock market.
Investing lie number three is that,
it is way too complicated to invest.
- [Both] Whoa!
- And listen I get it, because I've been around
plenty of financial advisors that,
love to hear themself talk.
But that's not me, I don't like listening to myself talk,
and when they are meeting with their prospective clients
they like to use big words like, standard deviation,
and beta, and correlation coefficient,
to make themselves sound really, really smart.
Now listen if that is your financial advisor like,
you need to go find a new financial advisor.
If that is a financial advisor that you meet with,
if they are talking over your head,
not really talking to you,
making sure that you understand what's going on,
just, you need to say bye bye.
♪ Baby, bye, bye, bye ♪
♪ Bye bye ♪
- But seriously, one of the golden rules of investing is
understanding what you are putting your money into.
If you can't explain to your grandmother, to your neighbor,
what exactly it is that you are putting your money into
then you have zero business investing into it.
Now I will say there are certain investments
that I would highly encourage you to stay away from.
Many of these could be considered a scam and I despise them
so much, that I recorded another video
where I highlight some of these scams,
so checkout that video and be cautious of those,
if you run into somebody trying to sell you those,
you need to run away.
Investing lie number four is that it is
too time consuming.
- Ain't nobody got time for that!
- Nope, not true, investing, yeah you could spend
all day long charting stocks, trying to find buying signals,
if you are a day trader, oh yes it is time consuming.
But to actually get invested,
it doesn't take hours upon hours to open an account
and make your first investment.
You can actually watch another video
where I opened an M1 finance account,
the first time I had ever opened that account
and I was able to open the account, get money invested
in less than an hour, I think it actually took me like,
thirty or forty-five minutes to get it all done.
So it is not time consuming at all.
Investing lie number five is that,
I need to know a lot about investing.
I'm just not smart enough, to know anything about investing
therefore I can't invest.
No, no, actually that's not true either.
Now I understand, if you want to buy a stock
maybe you want to do some research and buy a mutual fund,
you might want to know a little bit about what you're
putting your money into, but here is the cool thing.
Nowadays, there are investment platforms where,
you don't have to decide what to invest into,
you just have to decide what your investment goals are.
So yeah, platforms like Betterment and Wealthfront where,
you are just letting them know, like, what are your goals?
Like, what are you trying to achieve financially,
and once you share your goals, they will pick
and build your portfolio for you,
so they actually choose your investments.
Or you could take a look at M1 finance,
where you just choose the investment pie,
whether you are aggressive, down to ultra conservative
and they will build that portfolio for you.
So you need to know what the P/E ratio is,
or what the debt ratio is,
or whatever company that you're looking at,
that is not applicable, it doesn't apply here.
You just need to know how to open the account
and get some money in there.
Alright, the number six investing lie is that you need
a lot of money to start, and oh my gosh, like,
how many times am I going to hear this excuse?
Now, if you think that you need thousands,
upon thousands of dollars to start investing then,
listen, listen right now, listen, open your ears.
I'm not telling you to go to a New York, Wall Street firm
and open an account where they want at least $100,000.
Now, there are so many different platforms
where you can invest, I've already talked about M1 finance,
where you can open an account with nothing
and start your first investment, with a $100.
You also have an app, Robinhood, where you can also
start investing, with next to nothing.
Betterment, that I also mentioned,
they don't have any investment minimums,
you can start adding $25, $50 bucks a month,
whatever you can afford to start investing.
And if you want a little taste of real estate,
and you want to become a real estate investor
but you don't have a lot of money to get started,
you can check out Fundrise with as little as $500
to become a real estate investor.
But the lesson learned here, is that you don't need
a lot of money to get started.
I don't want you to be like this young lady
who didn't invest, because she listened
to people that just didn't get it.
They heard these lies and they believed them,
they accepted them as truths and they're not.
They're not truths, you can start to invest,
you don't have to know a lot,
you don't have to have a lot of money to get started,
it's not complicated, it's easy to do it.
You just have to make the choice.
So which investment lie do you believe yourself,
that has prevented you from taking action.
Whatever that is, share in the comments below,
but then after you share that comment,
let me know, let the YouTube community know,
what you did to take action,
what you did to change your situation
and start investing and start hacking your wealth.
Alright yall, hope you enjoyed this video,
hope that you do not believe these investment lies,
go out and invest and hack your wealth.
Until next time yall.