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Ask Dave

Scared To Get Started

Adam's mom is scared to invest some money that his deceased father left her. How can she break the fear?

QUESTION: Adam’s dad recently died and left mom with about $100,000. She is just leaving it sitting there and is scared to invest. What advice can Adam give her?

ANSWER: There are 2 kinds of fear, the kind that makes sense, that keeps you from touching a hot stove or playing in the street; and fear of the unknown because you don’t understand something you’ve never done before, such as riding a bicycle. You get over the fear of riding by learning how to ride and talking to people who are good riders and can give you information about it.

She can remove this fear of investing by learning about investing in good growth-stock mutual fund. The more she learns the better off she’ll be. If she didn’t know anything about the stock market and it flexed around a lot, she’d freak out. The more she learns about it, the more the fear goes away.