9 Investing Myths Debunked

You may have a lot of wrong ideas about investing.

I used to be like you.

So what did I do?

I educated myself by reading books, researching online, and attending numerous seminars about investing.

With the help of Philam Asset Management or PAMI and Philam Life, we are going to debunk some investing myths that may have clouded your financial smarts today.

9 Investing Myths Debunked with the help of Money Talk by Philam Asset Management and Philam Life


9 Investing Myths Debunked: Myth # 1

Investing in the stock market is basically just gambling.

Answer: False

According to Dictionary.com, gambling is (1) the activity or practice of playing at a game of chance for money orother stakes or (2) the act or practice of risking the loss of something important by taking a chance or acting recklessly.

When gambling, you have no idea if your bet will win or lose.

With investing, as long as you will follow your short or long-term plan and continue your financial strategy, you will reap the benefits in the long run.


9 Investing Myths Debunked: Myth # 2

When the stock market goes down, cut loss right away.

Answer: False

“Understandably, many people believe that when the stock market goes down, that’s when emotions kick in — either they panic and sell because of fear or they hold on to a bad stock with a false hope that it will go back up again,” shared Marvin Germo, Registered Financial Planner.

“It normally shocks people when I tell them that if they are financially liquid they should do the opposite and look for quality stocks that are cheaper. Just imagine if it were gasoline and price drops to Php 10 a liter, wouldn’t you fill up your tank?”

“Instead of panicking when stock prices go down, your best bet is to follow your plan, continue with your strategy, and select stocks that have great value with the potential to move even higher. The bottom line is that all stocks go down, but the good ones bounce back after falling. Prices will recover over time,” enthused Germo.


9 Investing Myths Debunked: Myth # 3

What works for others will definitely work for me.

Answer: False

We have different goals in life and what worked for you may not probably work for me.


“The farther you are from your goal, the more aggressive you should be,” Germo explained.


9 Investing Myths Debunked: Myth # 4

There’s a best time to invest.

Answer: False

The best time to invest in the stock market is not yesterday and tomorrow.

It’s NOW!

“Indeed, it’s time in the market and not timing the market, that’s important,” noted Ferdinand Berba, PAMI President and CEO.


9 Investing Myths Debunked: Myth # 5

It takes money to make more money.

Answer: False

You just need to be consistent.

For example, if you invested Php 5,000 on the stock market, you don’t necessarily have to invest the same amount the next month.

You can allocate Php 1,000 from your salary every month until you will hit your goal in the years to come!


9 Investing Myths Debunked: Myth # 6

Investing will make you rich right away.

Answer: False

“I wish I could tell you that investing will make you rich overnight, but keep in mind that what’s easily gained is easily lost. The main strength of investing in the market is to build wealth over time,” Berba emphasized.


9 Investing Myths Debunked: Myth # 7

I’m young and single. I don’t need life insurance yet.

Answer: False

“It’s a common thought that investing in insurance is only meant for those who are married and with children. In fact, investing while you’re young is ideal. Despite feeling like you’re invincible at that age, life is full of uncertainties. It’s more ideal to be prepared,” said Rolan Enriquez, Philam Life Director of Agencies for Visayas and Mindanao.


9 Investing Myths Debunked: Myth # 8

The insured never benefits from the insurance.

Answer: False

Life insurance is not just death insurance.

Life insurance nowadays is a combination of protection and investment.

“This is especially true when your insurance has an investment that is linked to mutual funds. Unit-linked plans allow you to maximizeyour money’s growth potential and to be prepared for life’s uncertainties at the same time. Philam Life financial advisors will be able to help you accurately identify and address your needs in terms of protection, health, savings, and investments,” Enriquez concluded.


9 Investing Myths Debunked: Myth # 9

With online technology, I don’t need a financial advisor.

Answer: False

Why we need financial advisors:

  • They can customize our financial plan.
  • They can recommend product solutions.
  • They can give you a personalized service.
  • They are well-trained and they have acquired expertise.
9 Investing Myths Debunked through Money Talk by Philam Asset Management and Philam Life with Marvin Germo, Ferdinand Berba, and Rolan Enriquez

R-L: Marvin Germo, Ferdinand Berba, and Rolan Enriquez


β€œ9 Investing Myths Debunked” is my 1st entry for Day 13 of The CBC 30 Day Blogging Challenge (#iBlogForCBC, #iBlogForCebu, #CBClevelUP, #30DayBloggingChallenge).


  1. Anne

    18 October

    This post brings me back to my financial accounting classes in college! Nosebleed times. Haha. True dyud ni Chan! I can hear my prof nodding in approval.

  2. Cheryl F.

    18 October

    Makarelate jud ko ani and even up to now same myths ang naa sa ako mind. Thanks for this post. Finally, clear na ako mind. I’ll probably push through with the investments I planned even before I became a mother.

  3. Interested to invest in stocks. One of my long-term goals. πŸ™‚ Nice read!

    Rome from Zuprome

  4. Christy Ocariza

    20 October

    I was really hit with Myth #7. Haha! I think it’s time to think again. Thanks Chan for this great posts! πŸ˜€

  5. Emjae Fotos

    22 October

    Very useful and informative. I really agree on the points mentioned and it’s really a good practice to invest. πŸ™‚

  6. Jazmine Llaguno

    23 October

    I agree with all these myths. People who are not really fully educated with stock market thinks that it is easy. It’s not but it still manageable if you have the patience and discipline to save (just like what you would do with savings account). Thanks for sharing this chan!

  7. caloyolano

    24 October

    Oh yeah! They have to really debunk or have some counterarguments about these “myths” or else they will lose business. How in the world is No.5 a myth with their explanation. No. 7 should not be on the list coz obviously it is the young people who needs insurance because nobody insures the old ones. πŸ˜‰ No. 6 is a myth made my network marketing people. πŸ˜‰

  8. Bjorn

    25 October

    I like this post Chanel. It’s very detailed and you put forth effort on it. Admirable.

  9. Ian Fuentes

    26 October

    I started investing on stock market last year. Serving me right until now. Nice Shanky!

  10. Rose Angelie

    26 October

    I agree, most especially with #6. Anything that would tell you that you will become rich right away is a myth – investing, networking, business, job, etc. haha

  11. Alyssa Panghulan

    3 November

    #6! YES!! People always have that misconception. Too bad it’s not done overnight. Great post te Shanks! πŸ™‚

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