Frequently Asked Questions

Yes. It is entirely normal for a portfolio to be worth less than what was originally invested, especially in the early years. Markets fluctuate, and in any given year, a diversified share portfolio has roughly a one-in-four chance of producing a negative return. Being down does not mean you made a mistake.

Markets are forward-looking. By the time conditions feel comfortable, prices have usually already risen. Research consistently shows that time in the market matters more than timing the market. Waiting for a perfect moment introduces the risk of never starting.

Look for red flags: promises of guaranteed returns, pressure to act quickly, unsolicited contact, and requests for secrecy. Verify credentials through ASIC registers. Any person or entity providing financial services in Australia must hold an Australian Financial Services Licence (AFSL).

Market crashes are normal events that have occurred throughout history. During a crash, portfolios lose value on paper, but historically, markets have recovered from every crash. The primary risk is panic selling, which locks in losses and removes the possibility of participating in recovery.

Complete loss is possible but largely avoidable. It typically requires: investing in a single company that fails, using leverage that amplifies losses, falling for a scam, or investing in speculative assets with no underlying value. A diversified portfolio is extremely unlikely to go to zero.

Sell decisions should be process-based: when you need the money for its intended purpose, your circumstances change, rebalancing requires it, or the investment no longer serves its function. Selling in response to short-term price movements is often regretted.

It depends on your circumstances. Professional advice is often valuable for complex tax situations, major life transitions, large sums relative to experience, or difficulty creating a plan. All advisers must be registered and can be verified through the ASIC Financial Advisers Register.

No. Gambling involves risking money on uncertain outcomes with negative expected returns. Investing involves allocating capital to productive assets with positive expected returns over time. However, speculating on individual stocks or day trading can introduce gambling dynamics.