This article provides information and education for investors. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or securities.

Why aren’t you investing?

Maybe you grew up thinking the stock market was a scam. Maybe you’re worried that you’ll lose all your money. Maybe you think you don’t have enough to start. Many Americans remain uninvested, even though it can hurt their long-term financial future. According to a 2019 Pew Research Center survey, only about 35% percent of U.S. adults said they personally owned stocks, bonds or mutual funds outside of retirement accounts.

While the system may have originally been built to benefit the few, it is growing to accommodate the needs of the many. No matter what your reason for avoiding investing is, you can begin with confidence after busting these stock market myths.

Myth #1: I need to know about the stock market to start investing

If you’re worried that you don’t know enough about investing to get started, consider this: The people who trade stocks frequently, confidently swapping Amazon for Apple when they see fit, rarely “beat the stock market.” Often, buying a simple index fund and letting it grow over time will make you more money, financial advisors say. So don’t worry that a limited investing knowledge will hold you back.

Having a cautious attitude when it comes to investing can be beneficial and keep you from making any rash decisions. Learning how to invest is easier than you might think, and definitely does not involve being an investing expert.

It’s getting started as soon as you can that is key, says Chloe Moore, a certified financial planner and founder of Financial Staples in Atlanta.

“Investing is an important tool for building wealth,” says Moore. “We all want our money to work for us, and investing plays a key role in this. The earlier you invest, the more time your money has to grow.”

Myth #2: The system isn’t meant for me

Different factors contribute to the belief that the stock market isn’t for everyone. Some people might feel this way because they can’t find a financial advisor who looks like them. Maybe it’s because of an inherited distrust or a lack of confidence in managing money, or maybe it’s a fear of discrimination. Maybe they just don’t think they have enough money to start.

These concerns are real, but there are more tools than ever to help people learn about personal finance and start investing. Groups such as the Association of African American Financial Advisors can help investors connect with advisors of color.

Robo-advisors are another option, and they’re a great way to get started investing, Moore says. They use computer algorithms to choose and manage your investments for you, no matter how much money you have (and often for a fraction of the cost of a traditional financial advisor). Ellevest is a robo-advisor that specializes in helping women invest. (Ellevest is a NerdWallet advertising partner).

“These automated online investment platforms can help you find the right mix of assets for your goals and risk tolerance,” Moore says. “They also rebalance your account on a regular basis, and some will optimize your portfolio for tax efficiency.”

Myth #3: If I open an investment account, I’m invested

Just like a checking or savings account, just because you’ve opened an account doesn’t mean you’ve put money in it.

Some investment accounts have a minimum initial deposit, but many do not, meaning you can open an account with $0.

Once you open the account, you’ll need to add money before you can start buying investments. If you’re not ready to commit your dollars to the stock market just yet, you can still dip your toes in the water by opening an account for free. There are even stock market simulators you can use to practice investing before you do it for real.

Myth #4: I’ll probably lose all my money

While this is technically true, it’s highly unlikely. Short term variations in the stock market may make your investment account’s balance go up or down. But if you have a diversified portfolio (which may include low-cost index funds) and hold on to those investments for the long-term, there is a greater possibility for growth over time.

Myth #5: I have to pay for a financial advisor

Just because someone is a professional doesn’t mean they can predict the stock market. A financial advisor may come in handy if your financial life is getting more complicated and you need some help with retirement or estate planning, but otherwise, using a robo-advisor or choosing investments yourself works just fine for most investors.

Disclosure: The author held no positions in the aforementioned securities at the time of publication.

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Alana Benson writes for NerdWallet. Email: abenson@nerdwallet.com.

President Biden announced on Jan. 20 that most federal student loan payments would be suspended interest-free through September 2021 due to the ongoing pandemic.

Once the suspension lifts, though, a $0 payment still may be a necessity for some borrowers.

According to an October 2020 survey from NerdWallet conducted by The Harris Poll, 45% of Americans with federal student loans of their own weren’t confident they’d be able to afford their loan payments when the payment freeze was scheduled to end last December.

Borrowers will hopefully be better off financially by September. But if you’ll need to keep paying less, here are your options.

Enroll in income-driven repayment

For a manageable payment, start with an income-driven repayment plan.

“Look at income-driven repayment first because it offers the most benefits,” says Persis Yu, director of the nonprofit National Consumer Law Center’s Student Loan Borrower Assistance Project.

Those benefits can include forgiveness after 20 or 25 years of payments, partial interest subsidies and monthly bills as low as $0.

Payments are based on adjusted gross income, family size and federal poverty guidelines. For example, if you had an AGI of $19,000, were single and lived in the lower 48 states, you’d pay $0 for 12 months under most income-driven plans.

If you already use one of these plans and your income has decreased, your payments can too.

“It’s important for borrowers to realize that they can ask to have their plans recertified at any time,” Yu says.

You can estimate payments under different income-driven plans with the Department of Education’s Loan Simulator.

Defer student loan payments

Federal student loan payments can be paused via deferment and forbearance.

Deferment is tied to events like losing your job or undergoing cancer treatment. If you’re eligible, this option can keep payments at $0.

For example, an unemployment deferment may be possible if you work fewer than 30 hours per week. If your hours were cut, but your household’s earnings are too high for an income-driven plan, deferment may make sense.

The government also covers all the accruing interest on subsidized loans during deferment.

“There are some subsidies on income-driven plans, but they’re more generous with deferment,” says Betsy Mayotte, president and founder of The Institute of Student Loan Advisors, a nonprofit that offers borrowers free advice.

Deferment is often available for up to three years, but you have to reapply periodically. For an unemployment deferment, the duration is every six months.

Place loans in forbearance

Payments are currently suspended interest-free via a special administrative forbearance. When that break ends, your servicer can grant you a discretionary forbearance, potentially without paperwork.

But besides no bills, that type of forbearance offers few benefits.

“Forbearance is a last resort,” Mayotte says. “It’s either that or you’re going to go delinquent or default.”

Interest usually accrues during forbearance. When it ends, that interest can be added to the amount you owe, meaning future interest grows on a bigger balance.

With any $0 payment strategy, it’s possible you’ll repay more overall.

“If you can afford it, I would always recommend paying versus not paying,” Mayotte says.

Getting ready

The most important thing to do now is understand your options, says Scott Buchanan, executive director of the Student Loan Servicing Alliance, a nonprofit that represents student loan servicers.

In part, that’s because servicers can’t change your payments yet.

“It’s a matter of regulation and process,” Buchanan says. “We can’t actually put you into (a) plan right now because you’re not in repayment.”

But you can do the following:

• Check your info. Log on to your servicer’s website to check your contact information and payment amount. If you’re not sure who your servicer is, visit the Federal Student Aid website. Mayotte says to beware of companies reaching out and offering help for a fee; your servicer will never charge you.
• Gather paperwork. Applications can require documentation like pay stubs, which Buchanan says must be from the past three or four months when you submit your forms. If you applied now, you’d likely have to do so again with more current information. But you can get a head start by figuring out what you’ll need and filling out what you can.
• Set a reminder. With payments set to resume in October, plan to submit your requests over the summer.

“If you wait until the day before your due date in the month when 30 million people are going into repayment,” Buchanan says, “call times are going to be long.”
This article was written by NerdWallet and was originally published by The Associated Press.

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Ryan Lane writes for NerdWallet. Email: rlane@nerdwallet.com.