There are better reasons than FOMO for investing
“I wish I had bought bitcoin in 2009…” Perhaps this is a phrase you have seen on a billboard, trying to entice you to invest in the new and exciting world of crypto. And with some of the recent media coverage, it is hard to not pay attention to the crypto market, especially the major cryptocurrencies like Bitcoin and Ethereum.
But this advertising approach is playing on FOMO – Fear of Missing Out. They want you to imagine if you could achieve the financial returns of those who invested over ten years ago. No one knows what will happen in the future, so try not to get too emotional when deciding when and how much to invest. This is one of the reasons why financial service companys always need to disclaim their performance numbers with – “past performance is not a predictor of future performance.”
Here are some less emotional ways and better reasons to start investing that may help alleviate the feeling of FOMO.
Automatic Round-Ups can help get you started!
Sometimes getting started is the hardest part. By starting to invest, even a small amount, this could alleviate the emotional state of FOMO and let you focus on learning about investing and introducing you to things like ETFs and diversified portfolios.
If you are like one of the many Australians that need your daily coffee fix or tap and pay on your way to work on public transport, you could be investing! By switching on automatic round-ups in the Raiz App, the spare change from all of your purchases could be getting invested for you in a diversified portfolio of ETFs. As soon as your round-ups hit $5, the auto round-up feature will allow Raiz to automatically invest the spare change for you.
You may not even notice the investments, but even $5 here and $5 there invested in a diversified portfolio can add up fast.
Have a goal? Automatic investments can help you reach it!
Setting a goal can be a great way to get you into the mindset to investing regularly. And when you investing regularly using the Raiz automatic features, you start to form healthy financial habits.
By automatically investing frequently, even in small amounts, you worry less about things like FOMO and focus instead on WHY you are investing. Markets go up and markets go down, so by investing regularly, you will invest over a longer time frame, meaning you can take advantage of Dollar-Cost Averaging, instead of trying to time the market.
If you invest just $5 a day with recurring investment, you would have invested well over $1500 a year. That seems much easier than finding $1500 to invest in one go, especially in the holiday period! Start small, think big.
At Raiz, you can invest in 5% in Bitcoin
If you do experience crypto FOMO, you can take comfort in the fact that by auto investing at Raiz using round-ups recurring investments, you could be investing part of your money into Bitcoin in either the Sapphire or Custom portfolio. There are now over 50,000 users in our Sapphire Portfolio. Many thousands of Raiz Custom portfolio users also enjoy the freedom to invest in a selection of ETFs as well as Bitcoin.
To see Raiz fees, click here.
To consider if Raiz is suitable for you, please read the PDS.
Don’t let FOMO control your investments
By investing habitually and automatically in the background of life, you can stay focussed on what is important to you, especially in the holiday season.
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If you have read all or any part of our email, website, or communication then you need to know that this is factual information and general advice only. This means it does not consider any person’s particular financial objectives, financial situation, or financial needs. If you are an investor, you should consult a licensed adviser before acting on any information to fully understand the benefits and risk associated with the product. This is your call but that is what you should do.
You may be surprised to learn that RAIZ Invest Australia Limited (ABN 26 604 402 815) (Raiz), an authorised representative AFSL 434776 prepared this information.
We are not allowed, and have not prepared this information to offer financial product advice or a recommendation in relation to any investments or securities. If we did give you personal advice, which we did not, then the use of the Raiz App would be a lot more expensive than the current pricing – sorry but true. You therefore should not rely on this information to make investment decisions, because it was not about you for once, and unfortunately, we cannot advise you on who or what you can rely on – again sorry.
A Product Disclosure Statement (PDS) for Raiz Invest and/or Raiz Invest Super is available on the Raiz Invest website and App. A person must read and consider the PDS before deciding whether, or not, to acquire and/or continue to hold interests in the financial product. We know and ASIC research shows that you probably won’t, but we want you to, and we encourage you to read the PDS so you know exactly what the product does, its risks and costs. If you don’t read the PDS, it’s a bit like flying blind. Probably not a good idea.
The risks and fees for investing are fully set out in the PDS and include the risks that would ordinarily apply to investing. You should note, as illustrated by the global financial crisis of 2008, that sometimes not even professionals in the financial services sector understand the ordinary risks of investing – because by their nature many risks are unknown – but you still need to give it a go and try to understand the risks set out in the PDS.
Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance. Those of you who cannot afford financial advice may be considering ignoring this statement, but please don’t, it is so true.
Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.
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Any opinions or information expressed are subject to change without notice; that’s just the way we roll.
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