There are many common money misconceptions out there, which if believed, could negatively impact your financial strategy. Let’s review some of the most frequently cited and debunk the myths.
Myth #1: The Stock Market Is Too Risky
It’s no secret every investment poses a risk. Let’s examine a hypothetical scenario: If you buy a $1 candy bar every day, it adds up to $365 a year. Put that $365 into an investment that earns 5% a year, and it would grow to $465.84 by the end of five years. By the end of 30 years, you could have $1,577.50. Imagine this was an investment into the stock market, and you realize the potential. Of course, the alternative to this scenario would be losing money because there’s no guarantee. Working together, we can select the amount, risk level, and timeframe you feel comfortable with. The hypothetical investment results are for illustrative purposes only and should not be deemed a representation of past or future results. Actual investment results may be more or less than those shown. This does not represent any specific product.
Myth #2: My Will Ensures Assets Will Be Distributed as Planned
Did you know a beneficiary named on your financial account supersedes those on your will? Legal professionals can help you create a full estate plan that offers more detailed, legally binding guidance.
Myth #3: Social Security Withdrawals Start at Age 62
Social Security timing is much more complex. Your marital status, timing for withdrawals, anticipated life expectancy, and tax situation require planned timing. Typically, the longer you wait, the more favorable your benefit will be.
Myth #4: My Experience and Education Holds Me Back from Wealth
Hard work, frugal habits, and clear financial goals are key factors among the rich and wealthy. If furthering your education is required, look into certifications, or online or technical degrees. Only you can hold yourself back from pursuing wealth.
Do you have questions about your finances? Let’s talk and navigate any misconceptions.