Twelve money myths you need to forget about False financial beliefs that could be hurting your bottom line If you’re a daily reader of the financial pages, or you tune into financial programs or podcasts on a somewhat regular basis, you’ve probably come across your fair share of financial advice and investment tips over the years. Some of that advice you probably accept. Some you disagree with. And other advice, you don’t have much opinion about at all. But no matter what you think of it, there’s likely been a significant chunk of advice that you’ve heard repeated and re-repeated so often, by so many people over the years that it has become something closer to universally accepted truth – regardless of whether it’s true or not. In actual fact, many of the so-called “truths” of personal finance can more accurately be labelled myths: false beliefs, half-truths and misguided assumptions that can derail your finances and make your portfolio vulnerable to market downturns and unforeseen crises. There are a few reasons for this: it could be that the financial environment or “rules of the game” which led to these truisms is fundamentally different now. Or maybe they were initially based on incomplete information. Or, perhaps, on faulty assumptions or misunderstandings of how financial markets really work. Or on anecdotal evidence that just isn’t borne out by historical data. With that in mind, here are several money myths which we need to consign to the dustbin of financial history. By forgetting about these oft-believed misunderstandings, you’ll be better positioned to manage your money wisely and keep your finances strong throughout your golden years. By James Dolan 28 | www.snowbirds.org Finance
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