Unless you’ve lived under a rock over the past 6-8 years you know just how volatile the stock market has been. Investors saw their retirement portfolios cut in half, gain everything back, and everything in between. Saying that it has taken a toll on our confidence would be putting it lightly.
There are many things that can keep someone from investing in the stock market. Some of those reasons are valid, but many aren’t. Regardless of how you feel about the stock market, now is a great time to start investing in stocks.
Investing in Stocks are Much Easier These Days…
Just a few decades ago there were very few options for those who wanted to invest on their own. Most investing was handled through brokers that charged exorbitant fees to manage things for you. This made it more difficult for investors to get started. That is not the case today.
Thanks to the growth of the online brokerage industry, there are many options for new investors to start with little money. There is also growth in the FinTech space bringing no cost investing options to investors, such as:
Seeing as over half of Americans polled listed not having enough money to invest as to why they weren’t investing, this helps lower the barrier to entry and makes it possible for anyone to get started – even if in small amounts.
Education is More Prevalent Than Ever
Due in part to the growing number of self-directed investing options, education is more available than ever. Investing can be difficult for many to grasp, but education makes it easier for most to start investing.
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What makes this education even better is that most of it is free to access. Not only do many online brokerages offer free courses and webinars geared towards education, but most 401(k) plan providers offer similar education options as well. Beyond that, there are thousands of investing books available as well as websites filled with free educational resources.
Twenty percent of Americans stated they have insufficient knowledge to invest in stocks. It doesn’t have to be that way. If you seek out some of the free educational resources available, you can rid yourself of this investing excuse and get started towards building the wealth you want.
The Market Rewards Those Who Have A Long-Term Mindset
The stock market, and investing in general, rewards those who are patient. It can be difficult to maintain that patience when you see your portfolio fluctuating up and down. I spoke with investors on a daily basis who were dealing with erratic portfolio performance, and saw it in my own portfolio as well, so I know how challenging it can be to remain patient with your investments.
That being said, you need to forget what the market has done recently and its performance over the past year. Seeing the market go up and down can play on your emotions and impact your mindset, causing you to lose perspective. It’s those who ignore that emotion and set their perspective decades out that win over the long haul.
It sounds too simple to be true, but it really is. Get out of your own way, and by continuing to follow your investment plan you will set you up for success in the long run.