Many people are uncertain about where or how to start investing, or they may be nervous about putting their hard-earned savings into an investment that carries any degree of risk. However, waiting too long to invest could make for a difficult road to retirement. 

Here are three myths you should stop believing when it comes to investing for your future self.

Myth 1: I Don’t Have Enough Money to Start Investing

“The journey of a thousand miles begins with a single step.” (Lao Tsu, Chinese Philosopher)

Can you put aside $5 a week? $10? Then congratulations! You have enough money to start investing for your future goals, whether that includes a home, wedding, or more flexible lifestyle. You might be able to find even more to invest by taking a look at your budget.

There are many brokerage firms and trading platforms available to you with no minimum deposit required. These firms often offer investment options with low or no commissions or management fees. Many of these firms also offer investing apps for your smartphone. If you think $5 a week is too little, remember, compound interest and time are on your side, no matter how small you start. Remember, before placing your money with any broker-dealer, make sure they are registered. 

Take Action

• Automate your investing. If you’re paid bi-weekly and have $20 deducted from your paycheck before it hits your bank account, you’ll have over $500 to invest over the course of the year, and you likely won’t miss it because you won’t see it. If your employer offers a 401(k) or Registered Retirement Savings Plan (RRSP) or pension, invest in it, even if it’s a small amount. 

Myth 2: I Don’t Know Enough About Investing – I Have No Idea Which Stock to Pick

“You don’t need to be a rocket scientist.” (Warren Buffett)

You don’t have to pick stocks if you don’t feel comfortable researching the financial health and history of individual companies. There are many investment products that enable you to invest in broad sectors of the market with little or no fees. These products allow you to diversify and spread your risk out over several different companies and economic sectors, rather than putting all your money in one company’s stock.

If you need help building a portfolio, you can also enlist the assistance of a robo-adviser or consult a financial professional after checking to ensure they’re appropriately registered. Many financial planners, investment advisers, and brokers are willing to work with clients who are just starting out on their investing journey and may not have accumulated many investable assets yet. In a way, time is on the financial professional’s side by working with younger clients whose investments will enjoy the benefit of compounding value over time.

Take Action

• Educate Yourself. Go retro and check out your local library or contact your state securities regulator for educational materials on investing. You may also start by researching lower cost financial professionals in your area or who are willing to work with you remotely on your investment goals. Always check to make sure the financial professional is appropriately registered in your state. For more information, see our overview of the different types of financial professionals.

Myth 3: I’m Afraid of Losing All My Money

“When you invest, you are buying a day that you don’t have to work.” (Aya Laraya)

Many older investors recall the losses suffered by the U.S. stock market from 2008 to early 2009. However, that’s not the end of the story. From the beginning of 2012 through the end of 2024, the S&P 500 returned 486%. 

While there is always a risk of losing money when investing, leaving your money in a savings account -- while guaranteeing the principle -- may result in loss of some of the value of your money to inflation, depending upon the economy at the time. As Robert Allen once said, “How many millionaires do you know who have become wealthy by investing in savings accounts?” 

Take Action

• Get some perspective. Look at the data on market performance over the long term (10, 20, and 30 years). Understand that while there are fluctuations, in general, the market has trended up over the long term. Consider the timeframe for your investment goals. When do you hope to retire, or semi-retire, and pursue your own hobbies or interests full time? Also, don’t get hung up on the sensationalized news on social media or 24-hour news shows. Don’t make your investment decisions based on sources that offer dramatic, sensationalized spins on the latest market dip or the hottest new IPO.