The number one fear that I hear from my money community is that they will lose money investing.
And that fear makes sense! We’re working hard for our money and no one wants to watch thousands of dollars disappear in the stock market.
But the REAL risk of investing is not that the market will go down. Because we know for sure that the market will go down…and then it will come back up. That’s how the stock market works; it moves continuously depending on what’s happening in the world at large and in the business world. We can’t expect continuous growth, but nor should we expect only losses.
No, the TRUE risk to investing is not knowing how to invest for your own goals, and it’s a mistake that cost my beloved Tbone $26,000.
How Tbone Lost $26,000
My partner Tbone began investing when he was 20, which by any measure is young! I didn’t start investing until I was 27.
But if you look at our investment accounts side by side today, I have significantly more money than him. HOW IS THAT POSSIBLE? The man had a 7 year head start!!
It comes down to one thing: Tbone started investing without know anything about the stock market, and he was directed into a portfolio and an investing product that made absolutely no sense for him. (Well and to be fair, I am an extreme saver and investor.)
Since Tbone had no knowledge of the market, and no real plan for his money besides “I’d like more of it in the future,” he was essentially taken advantage of for the first 8 years of his investing life.
Watch our Youtube video, presented by Capitalize, a company that rolls over your old 401k for FREE, to see exactly what happened to Tbone and how YOU can avoid it!
How to Be A Confident Investor
While yes, sometimes you “lose” money investing because the market goes down, please note my quoatation marks. You’re not really losing money when the market goes down. What’s actually happening is the value of the asset you own is going down.
You still own the asset. So if you wait it out, there is a chance that the value will go back up. And we see that over and over and over again in the stock market. The market has recovered from the Great Depression and the Great Recession; it is definitely capable of recovering from a low Tuesday!
What’s most important is that you get IN and START. And the easiest way for more of us to do that is with a workplace retirement plan, like a 401k or a 403b.
What I see happen over and over again is people start working at a job, open a 401k there, and contribute a few thousand dollars over a few years. Then they get a new job, and they leave their 401k behind.
THIS IS MADNESS.
Making sure to transfer that 401k into your NEW plan, so the money you’ve already built up can work together with your NEW contributions, is a fantastic way to build your wealth! And watching your wealth grow is a way to become a more confident investor!!
But I get it; it used to be really hard to move an old 401k. A lot of paperwork. Literal paper checks. It was annoying.
That’s why Capitalize is so wonderful; they find your old 401k, do all the paperwork, and you reap all the benefits. They do the annoying parts and you do the building wealth part.
All you have to do is fill in an application on their website, confirm your information, and then let them handle it all. REMEMBER: THIS IS FREE. THEY DO THE WORK. YOU GET RICH.
We love to see it.
So! If you worry that you’ll lose money investing, please remember that you own an asset that can keep working for you for a long time. Don’t fall into the same trap Tbone did and let Capitalize do the work for you if you have an old 401k you want to roll over.
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*The Capitalize links are affiliate links and I’ll earn a small commission at no cost to you if you open an account with them!