BOSS: Dex's Reality Check

Lesson 12 of 12 in our free Investing Basics guide: a 5-minute money game with the key points below.

This lesson is in the full version.

Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Investing Basics is free for everyone.

Questions you'll answer

Dex's mentor charged a '2% monthly management fee'. Roughly what's that per year?

Final question: Dex asks Nana, 'So what should I invest in?' What's the honest answer from this app?

Myth: “Dex: 'One stock, all in, is the fastest way to build wealth.'” — It's the fastest way to concentrate risk. Diversification spreads it.
Fact: “Fees compound over time just like growth does.” — Small yearly fees can cost thousands over decades.
Myth: “Dex: 'If it dropped, I should sell before it gets worse.'” — Panic selling locks in losses. Decide based on your plan, not panic.
Fact: “Money needed within a year is usually better in cash than invested.” — Short horizon = little time to recover from a fall.
Myth: “Dex: 'My mentor's 20%-a-week returns were real, just unlucky timing.'” — Returns like that are a scam signature. Report it.
Investing his rent money → Old Dex (hype). Essential money should never be at risk.
Building an emergency fund in cash first → New Dex (fundamentals). Foundations before investing.
Following DMs from 'mentors' → Old Dex (hype). Unsolicited contact = red flag.
Comparing total fees before choosing → New Dex (fundamentals). Costs are one of the few things you can control.
Spreading across lots of companies and countries → New Dex (fundamentals). Diversification.
Borrowing on a credit card to invest → Old Dex (hype). Losses plus interest. Double ouch.