This Is Your No. 1 Barrier To Building Substantial Wealth, According to Expert — 3 Ways To Overcome It
Written by
Emily Fowler
Edited by
Amber Barkley
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Investing may seem like a no-brainer to some, but for many Americans, the idea of putting money into the market remains out of reach. In fact, a 2024 survey from Janus Henderson revealed that nearly 48% of U.S. adults own no investable assets, with many hesitant to get started.
According to Amos Nadler, Ph.D., founder of Prof of Wall Street, in a recent CNBC article, the biggest reason is complexity aversion. When financial decisions feel too complicated, people procrastinate, convincing themselves they’re “not numbers people” or that they’ll make costly mistakes.
This hesitation has real consequences. Cash sitting in a bank account loses value to inflation while investments grow. But the biggest loss isn’t time in the market, it’s time itself. Delaying investing by just five or ten years can mean retiring with hundreds of thousands of dollars less.
Avoidance won’t make investing simpler. Here’s how to push past complexity aversion and start building wealth.
Find a Familiar Starting Point
Investing feels intimidating because it’s unfamiliar. But many people already have an easy way to get started with their workplace 401(k). With contributions taken directly from paychecks and preset portfolios that adjust over time, it’s a simple way to get started.
For those who don’t have a 401(k), an IRA offers a similar structure. Starting small is always better than waiting forever to get going.
Simplify Investing
Investing doesn’t need to be overwhelming, and a good way to start is to focus on low-cost, diversified options, like index funds or target-date funds. These investments automatically spread risk, and they don’t require constant attention and management.
It’s important to remember that investments don’t have to be huge to be effective, as even small regular contributions will add up over time and grow wealth.
Use Time as an Advantage
According to Fidelity, a 25-year-old investing $7,000 a year in an IRA with a 7% return could end up with over $2.3 million by the time they retire at 70. However, delaying contributions until age 35 could result in just over $1.16 million — a difference of more than $1 million. Too many people miss out on years of grown wealth by waiting for the “perfect” time to invest.
Wealth isn’t built by timing the market or understanding every nuance of investing. It’s built by getting started and staying in the game.
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