In 4 Retirement Planning Myths That Could Cost You, we tackled some of the most common financial myths that could be costing you money. In this article, we’re going to debunk three more myths about general personal financial management that could still have an impact on your retirement.

Myth 1: Once You Create a Financial Plan, You’re Set for Life

Life changes—your financial plan can, too. If you created a plan five years ago and never looked at it again, you might be missing out on important adjustments.

Example: Mark and Jane created a financial plan a decade ago when they first bought their home. But now, with kids in college and retirement on the horizon, their goals and expenses have changed dramatically. By updating their plan, they shifted their savings strategy and avoided potential financial shortfalls. This example highlights why regularly reviewing and adjusting your financial plan may be essential.

Myth 2: Owning a Home Is Always a Smart Investment

Homeownership is often seen as a key financial milestone, but it’s not always the best option. Homeownership comes with property taxes, maintenance costs, and the potential risk of a declining market.

Example: Let’s say Tom and Rachel buy a house in an expensive city, believing it’s the best financial decision. But between a high mortgage, maintenance, and property taxes, they’re financially stretched. Had they rented instead, they could have invested the difference in a high-growth portfolio. This example demonstrates why homeownership isn’t always the right choice for everyone.

Myth 3: All Debt Is Bad

Not all debt is created equal. High-interest credit card debt? Bad. A mortgage with a low interest rate that allows you to build equity? Smart.

Example: Imagine Jessica, who avoids all debt because she fears being “in the red.” When an opportunity arises to purchase a rental property with a low-interest loan, she declines. Years later, she realizes she may have missed out on passive income that could have built long-term wealth. This example underscores that avoiding debt entirely isn’t always the best financial move—using it wisely can be beneficial.

Take Control of Your Financial Future

Financial myths can be costly, but the good news is that you don’t have to navigate your financial future alone. Whether you’re planning for retirement, managing debt, or thinking about estate planning, having a partner in your financial security today can lead to long-term financial stability. Contact us to take the first step toward the retirement you deserve.