Financial myths you no longer believe

[The Honest Dollar]

Originally Posted by Julie Rains

I think the IRS is making that up or rather changing the name to make it more inclusive now that there are different plans; when the IRA was originally introduced, it was an Individual Retirement Account. You can probably find other sources but it started during the Reagan Administration (I only know this b/c I was around then).

Oh good! I thought I'd made it all up in a little fantasy retirement world in my mind.

[Greg]

My uncle worked for several decades for one company as an engineer. He now enjoys a nice pension for the rest of his life.

When I was growing up, I wanted a pension for life. That sounded pretty sweet.

I no longer think working for one company for my entire life is worth it. (1) I don't think pensions will exist when I get up to retirement age, and (2) it sounds kind of boring to work for the same people for decades.

[bluecobia]

Working for one company for 30+ years is not necessarly boring. You just need a company that is large enough for you to change jobs every 4-8 years and do something new. Most large corporations or governments can provide this.

[rstlne]

My financial myth: That I needed to have a credit card.

Well, no, I didn't need one. When I finally got one, it was useful to keep around just in case but I ended up not using it much.

[beansac]

Myth: Personal finance is a difficult, esoteric concept.

[stormy]

I used to think that people knew a lot more about finance then they really do. I've had friends ask me all sorts of questions or explain to me all sorts of "facts" like:

• Retired people don't pay taxes.
• You get all your mortgage interest back in tax refunds
• It's good to buy the biggest house you can (even if you are single) because you'll save lots of money

[rorich]

Originally Posted by amandajane

I've posted this in another thread but it's relevant to this one too:

Your valuables don't make you more valuable, and your net worth is not the basis of your self-worth.

I absolutely agree with you on this one. I heard that Billionaire Warren Buffet still lives in his old house. THere are people with way less money that have extravagant homes living on "financed income".

[khorrell]

Huge myth: If I only made $XXX, then I wouldn't have to worry about money.

[n_vizion]

Work hard and save money...that will make you wealthy.

Most people who work hard and save money are just making it...most wealthy people become wealthy by incoporating risks into their finances.

[purplefdu]

I agree, when I was little a retirement paycheck and social security was the way to ensure financial freedom, these days it barely pays the bills and probably won't be there when I get old enough.

I used to think that two cars was extravagent and showing off your wealth. Unfortunately these days its the only way to manage a two job household which is necessary to stay afloat in many places.