Summary: Why We Follow Myths Given the choice between someone be completely honest or simply being gentle with, most of us would acknowledge that honesty would be more useful.. Honesty helps us see things more clearly. Still, many financial advisers pefer to analyze and give advice based on data, information and knowledge: This means that they'll collect data and tell us what we're supposed to do with our money, health or whatever. Information represents what they have at hand at that moment from tests, results or tax returns. Knowledge boils down to what they learned when they received their certification in their specialty. All three can all become obsolete and outdated. If we keep applying outdated or bad data, information or knowledge, we're simply following myths. Some Myths Can Hurt Us A number of myths persist regarding real estate and retirement planning. These can hit us where it hurts financially. One myth teaches that it’s preferable to pay off a mortgage by sending extra principal payments to your mortgage company. Another one maintains that rental property is a great retirement strategy. Over time, these myths are so widely accepted that they are as dangerous as an outright lie. Another myth holds that money kept in real estate or in banks is in the safest place during volatile economic times. In reality, there are reserve insurance companies that have far stronger guidance than even banks. Remember that a lot banks failed during the Great Depression but not a single reserve insurance company did. Another costly myth is the one that purports that people get rich by putting money into tax-deferred IRAs and 401(k)s. The truth is that more people get wealthy by being entrepreneurial and increasing their productivity. Finally, the ongoing myth that you'll be in a lower tax bracket at retirement can also end up costing people dearly. The problem is that most people’s deductions have disappeared by the time retirement. This means that they may end up paying more in taxes even though their income is lower. The financial danger posed by these myths can be addressed through the antidote of wisdom. Putting this antidote to work starts with <a href="http://liveabundant.com/events/">honestly searching it out</a> and applying it. 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.
