I’m sharing the secret to investing in stocksand it’s going to surprise a lot of investors out there.
In this video, I’m revealing the biggestinvesting mistakes and myths along with how to avoid them and beat your investing goals.
We’re talking how to be a better investortoday on Let’s Talk Money.
Make your money work for you.
Creating the financial future you deserve.
Let's talk money.
Joseph Hogue with the Let’s Talk Money channelhere on YouTube.
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This video is going to be an eye-opener fora lot of investors and I’ll tell you why.
I’m going to reveal the secret to investing,something most of the Wall Street banks don’t want you to know and something that goes againstmost of what you hear in the media.
The secret is that investing is not aboutmaking money, it’s about not losing the money you make to Wall Street lies and theworst investor mistakes.
Think about it.
Anyone can make money in a bull market.
The stock market doubled in the five yearsto October 2007, that’s a return of almost 15% a year and the same has been true in thebull market starting in 2009.
Making money is easy.
Not losing money, not so much.
The crashes in 2000 and 2008 destroyed halfthe market value of stocks.
Worse still is data from Dalbar Research thatshows the average investor made just 2.
6% a year during the good years because of thoseWall Street lies and mistakes we’ll be talking about.
I’m going to detail all of those in thisvideo, the three worst Wall Street lies and the biggest mistakes that lose your money.
Then, in a special free webinar I’m offeringto subscribers of the channel, I’m going to show you a goals-based investing strategythat will take advantage of those big run-ups in stocks but save you from the biggest losses.
The webinar is completely free, I’ll leavea link in the video description below to sign up.
In it, I’ll guide you through every stepof my goals-based investing course, a 12-lesson course on customizing your investing strategyto meet your needs.
The webinar is free and will give you everythingyou need to get started.
I don’t believe in holding anything backto sell people into my course.
It’s just there for those that want a morehands-on and detailed approach and I’ve added a coupon code in the video descriptionbelow so check that out.
But let’s get to those three lies Wall Streettells investors and the two biggest investing mistakes almost everyone makes.
I’ve seen these Wall Street lies first-handwhen I worked as an equity analyst, when I worked for venture capital firms and big banks.
The goal wasn’t to make clients money, itwas to entertain, excite and keep them coming back for more.
It’s with these Wall Street lies that theinvestment industry and the media sells billions in advertising and collects billions morein fees.
And the first here is that investing is aboutpicking stocks and making huge returns.
This is an easy one to believe because allyou hear about on TV or the internet is stock picking.
You look at triple-digit returns on a stockand your eyes turn into dollar signs as if you were a cartoon character.
The problem here is that picking stocks meansyou’re constantly glued to the TV or that investing blog, looking for the next hot stock.
You trade in and out of stocks, running upthousands in fees, and the losing picks even out your winners.
I like to call this the ‘What’ of investing,what you invest in.
The truth is that the ‘How’ of investingis so much more important.
How you set up your investments and how youinvest is going to help you reach your goals and with a fraction of the time and stress.
Our second Wall Street lie here is that youneed to worry about a stock market crash.
Now if this is a lie, why did I just say thesecret to investing was about not losing money? How can you not worry about a crash if yourgoal is to not lose money? Because there are two ways you can try notlosing money in a stock market crash.
One is that you can constantly worry abouta crash, spend hours a week watching the news and try timing the market with stock trading.
That way is going to mean spending thousandsin trading fees, constantly losing sleep over your investments and probably not going tosave you a dime when a crash does come.
The second way is to use a long-term approachthat aligns your investments with your risk tolerance, with stock prices and with yourgoals.
This way takes less than a few hours a year,if even that, and helps you avoid the full force of a crash.
Now, this second approach isn’t going tosave you from losing any money.
I lost just over 20% of my portfolio in the2008 recession.
That was pretty mild against a 50% loss instocks and I was ready to take advantage of cheap prices in 2009 but there was still somepain.
That second approach is in rebalancing yourinvestments to match your goals and taking advantage of different assets including bondsand real estate funds when stocks start to get expensive.
Our third lie Wall Street tells investorsis that investing is complicated.
This is a favorite one of the industry becausethey like to look smart.
The army of analysts, media pundits and advisorslove to make investing complicated with different strategies and formulas.
This does one of two things to investors andboth are good for the industry.
First, it keeps you glued to the TV or thatinvesting website for the next strategy or stock pick.
The average investor doesn’t have time toanalyze stocks all day so they leave it up to the analysts and then just let them recommendevery stock.
That takes us back to those billions in advertisingand trading fees.
And then some investors just give up.
They don’t want to worry about their money,they don’t want the constant stress, so they just hire an advisor.
That means about a 1% management fee eachyear, which doesn’t sound like much until you add it all up.
If you started with $10,000 and invested $200a month with an advisor, that tiny 1% annual fee would cost you over $105,000 over 30 years.
At a modest 7% annual return, your investmentswould have grown to over $300,000 if you had managed them yourself but you’re left withjust $197,000 because you were scared into going to an advisor.
Investing is not complicated.
Life, Life is complicated.
World peace is complicated.
Investing is easy.
And it’s easy because we’re going to lookat those bigger-picture goals, we’re going to make investing about the how instead ofconstantly picking stocks and trying to time the market.
Now these three Wall Street lies really feedinto the two biggest mistakes investors make, falling into that returns-based strategy andover-trading.
That returns-based strategy of chasing stocksreally only does one thing, it keeps you scared.
It keeps you scared that you’re not pickingthe right stocks, that you don’t have enough information, that you’re going to get wipedout in the next market crash.
This leads to so many mistakes like panicselling, using complicated options strategies and investing on margin to boost your returns.
The end result is most investors see theirportfolio go nowhere.
Think about it.
The stock market surged four-fold over aboutnine years from early 2009 but what happened in your portfolio? Not accounting for deposits, has the valueof your portfolio jumped four-times over that period? Are you sitting on a 400% return on your investments? If the answer is no, then you’re probablystuck in that returns-based investing strategy and you need to find a solution.
All this is why that goals-based investingstrategy is so important.
It’s going to make investing personal foryou, for your goals, and is going to keep you from falling into that returns-based investingstrategy that loses money.
Don’t forget to click through and sign upfor that free webinar where I’ll detail the entire goals-based investing strategy,how to get started and how to manage your own investments.
In about half an hour, I can show you howto be successful investing and how to manage your portfolio on just a few hours a year.
We’re here Mondays and Wednesdays with thebest videos on beating debt, making more money and making your money work for you.
If you’ve got a question about money, justscroll down and ask it in the comments and we’ll answer it in a video.