Financial Planning

8 Urban Myths of Personal Finance

Don't believe everything you hear about your money.

Myth: You don't have to start saving for retirement until age 40.

Truth: The sooner you start saving and investing, the better.

Myth: Only rich people get tax breaks.

Truth: The tax code offers savings for middle- and working-class taxpayers for starting a family, education, home buying and retirement saving.

Myth: Gold is the best investment you can make.

Truth: A diversified portfolio will shine brighter.

Myth: Social Security won't be around when you retire.

Truth: It will evaporate by 2034 if nothing changes, but incoming money from payroll taxes will still be enough to support about 75% of promised benefits.

Myth: Free trade deals are bad for America.

Truth: Trade and international commerce creates as many (if not more) higher-paying jobs, especially in the services industries, as it destroys.

Myth: Tapping your 401(k) is a great way to borrow money.

Truth: The hit to your nest egg may be greater -- and last longer -- than you think.

Myth: Credit cards are best to be avoided.

Truth: Used smartly, a credit card will help you build a solid credit history and boost your credit score.

Myth: Only rich people need a will.

Truth: Everybody should have a will, even if only to spell out funeral and burial wishes.

Read more about the urban myths of personal finance.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
The Berkshire Hathaway Portfolio: All 41 Warren Buffett Stocks Ranked
stocks

The Berkshire Hathaway Portfolio: All 41 Warren Buffett Stocks Ranked

The Berkshire Hathaway portfolio is a diverse set of blue chips, and increasingly, lesser-known growth bets. Here's a look at every stock picked by Wa…
November 16, 2021
The Case Against Owning All Dividend-Paying Stocks in Retirement
investing

The Case Against Owning All Dividend-Paying Stocks in Retirement

Income investors are often all about dividends, but that may not be a smart strategy for retirees. Here’s why, and what investment model they should c…
November 8, 2021

Recommended

2022's Best Mutual Funds in 401(k) Retirement Plans
mutual funds

2022's Best Mutual Funds in 401(k) Retirement Plans

A key to smart retirement saving: spreading your portfolio across a few of the best mutual funds in your 401(k) plan. Here are the 30 top options avai…
November 23, 2021
It Still Pays to Wait to Claim Social Security
Financial Planning

It Still Pays to Wait to Claim Social Security

Despite dire headlines about the Social Security trust fund, you will be better off waiting to collect benefits.
November 23, 2021
Roth IRA Basics: 11 Things You Must Know
Financial Planning

Roth IRA Basics: 11 Things You Must Know

A Roth IRA can be a great way to save for retirement since the accounts have no required minimum distributions and you withdraw the money tax-free.
November 23, 2021
33 States with No Estate Taxes or Inheritance Taxes
retirement

33 States with No Estate Taxes or Inheritance Taxes

Even with the federal exemption from death taxes raised, retirees should pay more attention to estate taxes and inheritance taxes levied by states.
November 22, 2021