Is Taking an Investment Class Really Worth It?

Left and right, you might have people telling you that you should take an investment class to learn more about finance and investing. "Don't just let your money sit there," they’d perhaps say.

But is this really true? Or is it just a load of rubbish made up by companies to take money out of your pockets?

Should you take an investment course?

As adults with jobs and families to take care of, it is quite hard to make money when we have no other skills. So we can only stick to our day jobs and just bring one single income. Whether you earn more or not depends solely on your boss/employer.

However, if you can take an investment course to learn about investing in the stock market, you won't have to put so much earning pressure on your salary. You don't need to work yourself to the bone. Instead, you will be able to earn passive income.

The best thing about investment classes is that they usually include personal guidance from professionals, so you have someone to help you along the way and guide you. Most importantly, they teach you how to take action, and it's much easier to take action when you know what you're doing.

You can't get all these from reading investment books alone. So, yes, taking an investment class is advisable… but only if you take the right ones AND you take massive action.

Sadly, the financial industry is riddled with people who are unprofessional, dishonest, and are only out to rip others off with fraudulent schemes.

How many times have we seen newspaper headlines about someone scammed out of their life savings because they were promised a rewarding return?

Also very sadly, and this is very common, many people take up these investment classes, yet don't take any action after learning and just cry foul saying it doesn't work.

It's like taking up a cooking class, never buying any ingredients to cook, and later complaining about the class being lousy when you've not even made a single dish.

Watch this episode with Sharon Au and Darren Lim to know more about the benefit of financial education in Singapore.

What should you look for in an investment class?

There are many financial education providers out there, a sea of choices for you to pick from.

We believe most of them are legit and have their own investment principles behind what they teach, you just need to find one that works best for you.

That said, there are certain things that you absolutely should look out for as signs of their legitimacy. Here are the 4 most important indicators you should look for:

1. They can show personal investment results

It goes without being said that it is important for these providers to practise what they preach.

Imagine how you would feel if you find out that the guy who's about to teach you investing does not even invest nor have any personal investment results to show? How would you then have the peace of mind to know that his method works?

Some people would say these financial education providers are showing off when they show the audience their investment results – the money they've made, the cheques they've collected, how their wealth has compounded over the years – when, in fact, you should be glad they're showing all these because it means that they're been there and done that.

You're in the safe hands of professionals who know what they're doing and who can teach you the mistakes they’ve done before so you won’t repeat any.

2. You can execute without them after the course

When you sign up for an investment class, you should expect to be taught the complete steps on how to invest WITHOUT this education provider after the class.

From knowing how to perform an analysis, make buy and sell decisions, or perform a trade, make sure that you're walking away with all of these steps in your hands by the end.

Yes, we're aware that even after the course, you still may need further guidance and hand-holding, which is very common. In fact, some of these investment classes do provide post-programme coaching classes and community activities you can participate in, which are bonuses.

However, if they tell you that you NEED to invest using only their platform even after finishing the course and you cannot do it independent of them, that is a MASSIVE red flag.

3. They don't promise overnight results or zero investment risk

ANY, and we mean ANY investment that promises overnight good returns is lying to you.

Even a baby needs 9 months to grow in its mother's tummy before it can be born. Nothing happens overnight.

There are select types of investments or tools that can earn you money within a short period.

However, those usually involve higher risks, involve spending your day sitting in front of your computer and are not suitable for beginners. As they require high mental stamina and agility, it is more suitable for the pros who can react quickly if the situation calls for it, but too much of a hassle for people like us who have a lot going on in our lives as it is.

No thanks to the sheer number of "investment gurus" who came out to make a quick buck and disappeared as quickly as they came in the last decade, investment classes and financial education, in general, have gotten an unnecessarily bad reputation as "scammers" when in fact, there are actually plenty of great financial education providers out there.

Bear in mind though, good as they may come, all investments come with risks. So while your teachers may be good people and teach you all they can, it is still up to you to watch out for your own investments and make the best investment decisions for yourself.

Before you dive into any investment class, make sure you identify which investment style works the best for you.

Check out our complimentary investing masterclass where we'll teach you the basics of the value investing strategy. Here's your link to get a free seat to this online webinar.