Summary: The Power of Honesty If someone were to offer you advice, would you prefer that they be completely honest or that they be gentle with you? This is a question that Doug often asks the audiences to which he speaks. After a few moments of reflection, most people express an overwhelming preference for honesty. This is a great basis for all advice. A lot of financial advisers have a tendency to analyze and give advice based on date, information and knowledge: They gather data and recite what you’re supposed to do with your money, health or whatever. This means the information they have at hand at that moment whether from tests, results or tax returns. Knowledge is what they know when receiving certification in their specialty. The downside with data, information and knowledge it that all of them can all become obsolete and outdated. What stands the test of time is wisdom. This is what helps us distinguish between myths and reality. Common Myths There are a number of popular myths regarding real estate and retirement planning. For instance, one myth purports that it’s better to pay off your mortgage by sending extra principal payments to the mortgage company. Another myth holds that rental property is a great way to prepare for retirement. Some financial planning myths become so widely accepted that they are as dangerous as an outright lie. They would include the myth that money is safest either in real estate or in banks during hard economic times. In reality, reserve insurance companies that have much stronger guidelines than even banks. Numerous banks closed their doors during the Great Depression but not one reserve insurance company did. Another myth is that people became rich by saving their money in tax-deferred IRAs and 401(k)s. The truth is that more people get wealthy by being entrepreneurial and increasing their level of productivity. Another myth that can cost people dearly is the myth of being in a lower tax bracket at retirement. Actually, most people’s deductions are gone by the time they reach retirement. Between their loss of deductions and rising taxes, they can end up paying more in taxes even when their income is lower. The risk posed by these myths is best countered by wisdom. Before we can apply it, we have to <a href="http://liveabundant.com/events/" target="_blank">first seek for 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.
