RCBC Savings Bank


Debunking Investments Myths

October 1, 2018


Don’t Believe These Myths About Investments

For the uninitiated, investing is usually a stressful, confusing, but gainful experience.

Whether it’s your first foray in investing or you have been doing it for years now, it’s crucial to conduct your own research and analyze where your money will be going.

But with so many investment tips from everyone and from everywhere, how can you tell what’s good and what’s not?

Here are some examples of the most common investment myths that make people nervous about investing. 

Investing has an age requirement.

You’re never too young to prepare for your own financial future!

It’s never too early to invest, but you should at least be 18 years old to do it.

You can start investing on your own as soon as you turn 18 years of ages.

Remember that when it comes to investments, time is your best friend.

Invest early to benefit from this valuable thing called compound interest.

You don’t need to invest millions. Start with a small amount and build from that.

You need hundreds of thousands to invest.  

A lot of would be investors get intimidated or scared to invest because they think that investing is only for the rich.  

They have this misconception that serious money is required.

But you can get a portfolio started for as little as P5,000. This initial investment can go to mutual funds or retail treasury bonds.

You may think that it’s a small amount to invest. But over time, even the income you earn can be invested to earn even more, increasing the value of your investment. 

Investments are risky.  

There are good investments and there are bad investments. To avoid the latter, make sure that you diversify your portfolio.

Determine the amount of risk that you’re willing to take and the returns that you want to receive.

Decide whether limiting losses is more important to you than making gains. It is more risky to delay investments or not to invest at all.

If you should invest, choose real estate.  

Because it’s tangible and appreciates in value, people think that real estate is the best kind of investment out there.

However, real estate value appreciates just as much as it depreciates, much like any other financial investment.

If you live in a flood prone area, your real estate property can even drastically lose its value.

You also need to consider what you pay for in property taxes, association dues, and miscellaneous maintenance expenses.

Real estate is also not easily converted into cash. This means you can wait a long time before it can make money for you.

If it cost a lot of money, then it’s a good investment!

You probably know people who spend a fortune on art, jewelry, and even designer purses because they claim they’re good investments.

They’re only good investments if you will sell them and profit from them. Not if they’re inside your closet or hanging on your walls.

When you have money saved in the bank, you are financially secure.

A savings account is good for your short-term needs, but it’s not really an investment.

A good investment should be able to provide you with long-term financial stability, predictable outcomes, and guaranteed returns.

It should have consistent or steady payouts or earnings. It should also be in demand and not too complicated! 

Investing can be overwhelming and confusing. Whether you’re new to investing or not, RCBC Savings Bank can assist you in reaching your investment goals with its investment expertise and the best investment solutions for your needs!

If you wish to secure your funds for your loved ones, or manage your educational or hospital expenses, RCBC Savings Bank also offers the Personal Management Trust Fund for just a minimum investment of P100,000.

If you wish to diversify your investments for better income potential, an Investment Management Account will help you achieve just that.

You get to invest like a professional by gaining access to a wide array of investment instruments, such as government securities, corporate bonds, and preferred shares, just to name a few.

If you’re looking to invest in a low-risk fund that can still give you the highest yield for a short-term period, the Peso Money Market Unit Investment Trust Fund is just right for you.

Speak with an RCBC Savings Bank financial mentor today!

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