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Morningstar Money MythBuster

With so many money myths out there, we're on a mission to bust them all. Join Mr. Morningstar Money Man on Money Mythbuster, where we'll knock down the obstacles in the way of your investment success!

Ruth Saldanha 6 May, 2020 | 10:41AM
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Do you think you're too young to invest? Or that you don't have enough money? And if you're close to retirement, do you think that withdrawing 4% a year is ideal? And no matter how old you are, or how much money you have, or what stage of life you're in - do you think dollar cost averaging is a good idea?

All of these are myths. You're never too young to invest. And you can start investing with as little as $20. Oh and if you blindly follow the 4% rule, you might end up having too much, or too little money in various years. 

And perhaps the one thing that uniformly shocks all our readers - dollar cost averaging does not work. 

Follow Mr. Morningstar Money Man, as he busts all these myths and more. 

Money MythBuster: 4% withdrawal rule
How much you withdraw depends on how much you spend, and retirement spending is not a single point decision, but multiple decisions over time

Money MythBuster: 100 minus age = equity
Asset allocation is more than a formula

Money MythBuster: You NEED to invest in gold
Factors determining a successful investment in gold are extremely difficult – if not impossible for retail investors – to predict

Money MythBuster: High risk equals high returns
We're committed to investor empowerment at Morningstar. That means good advice on where to look, and what to avoid.

Money MythBuster: Popular stocks are always 'Buys'
Companies which tend to have low P/E, low price-to-book are unloved, and typically trade at lower prices and so over time produce higher returns

Money MythBuster: Dollar cost averaging is good
Since you cannot predict what the market will do, the best strategy is to fully invest your money as soon as it available so you can keep your money invested for as long as possible

Money MythBuster: Past performance guarantees results
The second episode in the new Morningstar series explains how there's a lot more to an investment's future than first meets the eye

Money MythBuster: Only the rich can invest
Morningstar's new series tackles money myths starting with, 'You need to be rich to invest'. Spoiler: you don't!

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About Author

Ruth Saldanha

Ruth Saldanha  is Senior Editor at Morningstar.ca. Follow her on Twitter @KarishmaRuth.

 
 
 

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