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Financial Myth vs RealityMYTH: I don't earn enough money to need a financial plan. REALITY: A financial plan is a tool that helps people to live within their income. It also allows them to make better use of their money. MYTH: Investing is just for people with a lot of money. REALITY: Investing is for all income levels. People don't have to be rich to begin investing, however they must have an understanding of bsic investment products and their risks and rewards. Investing provides the opportunity for any one to build wealth. MYTH: Young people don't need to think about saving for retirement. REALITY: Today's young people can expect to live 20 or more years in retirement. Those who begin early to contribute to a retirement savings plan are more likely to have money for a comfortable retirement because of compound interest. Saving small amounts of money over a long time makes use of the magic of compounding. Employer based savings programs are tax-deferred, and the employer may contribute to your account as well. That's free money. MYTH: Social Security is a business funded program to provide financial aid to people who are retired. REALITY: Social Security is an employer and employee funded government program that provides a base level retirement income. It is not intended to be the sole source of retirement income. Individuals are responsible for filling the gap between income they will need in retirement and the money provided by Social Security. The additional funds can come from employer based retirement savings plans, personal savings, and Individual Retirement Accounts.
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