Some myths are useful. Remember the myth of Icarus?

Basically, if you make a set of wings for yourself with wax and feathers, only go flying on a cloudy day so you don’t get sunburnt.

That was the moral of that story, right?

Anyway, there’s a ton of myths when it comes to investing and not all of them are helpful! Here are the top 10 investing myths and the real truth.

10. I’m too old (or young) to invest

The truth: If you’re young, time is your biggest advantage. Even small investments grow significantly due to compounding.

If you’re older, investing can still help you reach goals like supplementing retirement income. It’s never too late—or too early—to start.

9. If the market crashes I’ll lose everything!

The truth: Market crashes are scary, but they’re temporary. For example, during the 2008 financial crisis, the U.S. stock market lost 37%. But by 2013, it had fully recovered and then some.

Selling during a crash locks in your losses. Instead, focus on staying invested for the long term and using crashes as buying opportunities for quality investments.

8. I need to pay big fees to get good returns

The truth: High fees don’t guarantee high performance. In fact, low-cost index funds that passively invest in the stock market often outperform expensive actively managed funds over time. For example, the Vanguard S&P 500 ETF has an expense ratio of just 0.03%, meaning you keep more of your money working for you.

However, sometimes it is good to pay for investment advice, especially if you’re investing in tricky markets that fewer people research. Then it’s good to have expert guidance! Funds are generally getting cheaper anyway:

7. Investing is set it and forget it

The truth: While investing isn’t a daily task, you should check your portfolio at least once a year. For example, if stocks have done well, they might take up more of your portfolio than you planned, leaving you overexposed to risk.

Rebalancing keeps your investments in line with your goals. It’s like tuning up a car—small adjustments keep things running smoothly.

6. Never take any risk

The truth: Avoiding risk entirely can cost you in the long run. If you only keep money in a savings account, it may lose value due to inflation. Spending $1000 in 2013 was the equivalent of spending over $1,370 today. Check it out for yourself!

A balanced approach—mixing safer investments like bonds with riskier ones like stocks—helps you grow your money while staying protected.

5. Investing is not for beginners

The truth: Investing has never been easier. Tools like robo-advisors (e.g., Fulfilled) automatically create a portfolio for you based on your goals and risk tolerance.

Index funds, like those tracking the US stock market, are another beginner-friendly option. They let you own small pieces of many companies, reducing risk and complexity. You don’t need to know everything to get started—just take the first step.

4. Just invest in what everyone else buys

The truth: By the time everyone’s hyping up a stock, the opportunity might have passed. Remember GameStop or AMC? Many people bought in late and lost money when the prices dropped. Instead, look for companies with strong fundamentals: growing revenue, solid profits, and competitive advantages. Look for companies you know and use!

Warren Buffett, one of the best investors of all time, says…

3. Wait for the perfect time to invest

The truth: Trying to time the market often means missing the best days. Studies show that missing the 10 best trading days in a 20-year period can cut your returns in half.

Instead of waiting for the "right time," invest consistently, whether the market is up or down. This strategy, called dollar-cost averaging, reduces the risk of buying at a high price and spreads your investment over time.

2. Investing is just gambling

The truth: Gambling is based on luck, while investing is based on long-term growth and informed decisions. A gambler betting on red at a roulette table has no control over the outcome. An investor buying shares of a solid company like Apple or Tesla is betting on that company’s ability to grow over time.

The S&P 500 (500 largest U.S. companies), for instance, has returned an average of about 10% per year over decades. That’s not luck—it’s the power of long-term growth.

1. I need to be rich to start investing

The truth: You can start investing with just a few dollars. Apps like Robinhood let you buy fractional shares, meaning you don’t need to afford a full $3,000 stock to get started.

For example, instead of buying one share of Amazon, you can invest $10 and own a small piece of it. It’s not about how much you start with—it’s about consistently investing over time.