Don't Buy Into These 3 Investment Myths

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Don't Buy Into These 3 Investment Myths

Trap No. 1: It's too early to plan for retirement

According to a study cited in a colleague's article, 49% of people age 25-34 have less than $25,000 saved for retirement. While that's not particularly surprising, this certainly is: A mere 23% of people over 55 have more than $250,000 saved up -- and they're within a decade of retirement!

Too early to plan for retirement? Hogwash! Can you imagine if Tiger Woods' parents had told him he was too young to swing a golf club, or if Roger Federer's coach had told him he didn't need to practice his forehand yet? A large part of the reason those two men so dominate their respective sports is because they got a jump start -- and they never let up.

The same holds true with investing for retirement. You need to practice, work hard, and focus -- so that when game-time finally arrives, everything is effortless and just falls into place. Is it a coincidence that Warren Buffett began investing at 11, has practiced every day since, and is now the richest man in the world? I think not.

So, what gives? I think it has a lot to do with the second investment myth you need to ignore at all costs.

Trap No. 2: The "I Can't Beat Federer" Syndrome

If you've watched professional tennis anytime in the past decade or so, you know that virtually no one can beat Roger Federer -- except for Rafael Nadal. Likewise, virtually no one can beat Tiger Woods on Sunday or otherwise. You probably can't, and I certainly can't.

Furthermore, it's not very likely any of us will ever be a better investor than Buffett. Nor is it likely we will one day be able to brag about how we got in early on and then rode off into the sunset.

So what? Just because I can't beat Roger Federer doesn't mean that years of practice and dedication won't turn me into an exceptional tennis player, or that hitting a bucket of balls at the range every day won't improve my drive immensely.

And just because you may not ever match Warren Buffett's wealth doesn't mean you shouldn't follow his investing style -- regular purchases of excellent companies selling for less than they're worth.

Trap No. 3: Planning for retirement is hard

The final thing that seems to keep many people from achieving their dream retirement is the very thing that could achieve it for them in the first place: hard work.

There's no sage advice I can quote here, and I'd be lying if I said investing well or planning for retirement was simple. But you must make it a commitment and priority today -- for the sake of your future. Plus, with a little help, it can be far easier than you ever imagined.

Remember, it's never too early -- or too late -- to start working toward your dream retirement, so simply consult an advisor to get some help on ruling your retirement.

(from www.fool.com)
Cheers!