Summary: Shall I Be Honest or Gentle? Doug often asks the audiences to which he speaks whether they'd prefer that someone be completely honest or be gentle with them. To their credit, nearly all of them prefer honesty, after giving it a few moments of thought. Many financial advisers tend to analyze and give advice based on three things: Data – They gather data and recite what you're supposed to do with your money, health or whatever. Information – This means the information they have at hand at that moment whether from tests, results or tax returns. Knowledge – This is what they know when they receive their certification in their specialty. The problem is that data, information and knowledge can all become obsolete and outdated. People often continue to follow myths when they really need wisdom. Putting the Myths To Rest There are persistent myths you may encounter regarding real estate and retirement planning. One of them purports that it's best to pay off a mortgage by sending extra principal payments to your mortgage company. Another one is that rental property is a great retirement plan. Some myths become so widely accepted that they are as dangerous as an outright lie. This includes the myth that money in real estate or in banks is in the safest place during hard economic times. The truth is, there are reserve insurance companies that have far stronger guidelines than the banks. Many banks closed their doors during the Great Depression but not a single reserve insurance company did. Another myth is that people got rich by putting money into tax-deferred IRAs and 401(k)s. Actually, more people get wealthy by being entrepreneurial and upping their level of productivity. Pursuing the myth of being in a lower tax bracket at retirement can also cost people dearly. In reality, most people's deductions have gone away at retirement. This means that they can end up paying more in taxes even when their income is lower. Wisdom is the antidote to the danger posed by these myths. That means we must be willing to <a href="http://liveabundant.com/events/">honestly search it out and apply it</a>. Start by <a href="http://liveabundant.com/free-analysis/" target="_blank">visiting with a wealth architect</a> today. *Life insurance policies are not investments and, accordingly, should not be purchased as an investment.
