Summary: Hard Truth or Gentle Deceptions? When Doug speaks at various educational events around the country, he'll often ask his audience whether they’d prefer that someone be completely honest or just be gentle with them. Nearly all audience members, after taking a minute to think it over, say they'd take honesty over the alternative. This can have far-reaching implications in many areas of our lives. For instance, there are many financial advisers who tend to give advice and analysis based on three things: The first one is data. They'll gather data and then explain what you’re supposed to do with your money. The second one is information. They utilize whatever information they have at hand at that moment, typically gleaned from tests, results or tax returns. The final one is knowledge. This relates to what they know at the time they are certified in their specialty. The wrinkle here is that data, information and knowledge all have a tendency to become obsolete and outdated. They become myths that people often continue to follow myths when what they really need is wisdom. Swapping Myths for Wisdom There are a number of persistent myths that we might encounter regarding real estate and retirement planning. For example, one of them holds that it’s better to pay off your mortgage by sending extra principal payments to the mortgage company. Another myth is that rental property is a terrific retirement plan. Some of these myths become so broadly accepted that they become as dangerous as an outright lie. This includes the myth that the safest place for money, during hard economic times, is either in real estate or in the bank. In reality, there were many banks that closed their doors during the Great Depression but not a single reserve insurance company did. This is because reserve insurance companies typically have far stronger guidelines than even the banks. Another popular myth is that people become rich by saving their money in tax-deferred IRAs and 401(k)s. Truth be told, more people become wealthy through upping their level of productivity and by being entrepreneurial. There one final myth you should also steer clear of. It's the myth of being in a lower tax bracket at retirement. Actually, many people’s deductions have disappeared at retirement. Because of this, they may end up paying more in taxes at a time when their income is lower. The antidote to the danger posed by these myths is found in seeking wisdom that stands the test of time. This requires us to be willing to search for it, <a href="http://liveabundant.com/events/" target="_blank">learn it</a> and apply 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.
