The Reluctant Investor

I can spend all day long explaining the benefits of share investing but this will not get me anywhere if I am speaking to a reluctant investor.

People are generally reluctant to invest in the share market due to horror stories they have heard, reluctant investors will clutch at every bit of news which might support their reluctance to invest: corporate misbehaviors, reports of the shocking misdeeds investment advisers have visited upon their trusting clients, scary events around the globe which threaten to bring the world economy to its knees. 

Sometimes such investors come from families in which money has been lost to bad investments (whether these had anything to do with the share market or not) or they've just heard stories.

A reluctant investor dislikes the entire idea of share investing.  This investor finds share investing all too scary, and often prefers to have everything in rental property because you can drive by and see it or to just keep money in the bank.

If you're in a long term relationship, it's important that you and your spouse both understand why and how you're investing.  Otherwise you run the risk of making big mistakes when one spouse's irrational exuberance or unreasonable fear causes you to make silly choices. 

The key is education, you need to understand how the markets work, and you need to know your North Star, the end goal you are trying to achieve. You need to know what you will and will not invest in, your rules for investing which will not be broken.  Finally you need be willing to put aside your unfounded fears and learn how to get the most out of the share market. 

By Jason Fittler