Money Matters: Experts debunk personal finance myths

February 10, 2017 01:30

Sponsored by NEFE

There is a lot of personal finance advice out there. We hear it from family, friends, on television, radio, online and even in the mail. But one size does not fit all when it comes to managing your money and planning for retirement. Each person's situation is different, and sometimes makes sense to ignore some of the rules we might think are always true. Savings targets, retirement estimates, the value of home ownership and other factors should be considered carefully and decisions should fit your circumstances, as well as your reasonable expectations for the future.

As U.S. News Money details, some experts say even basic rules like having three to six months take home pay in savings might be too much for dual-income households and not enough for higher-level executives to have in reserve between jobs. Planning to spend four percent of your nestegg in retirement might not fit the lifestyle you actually expect, and a four percent return may not happen consistently. Credit cards aren't always good or bad. Home ownership may be good for some, but renting may be better for others. And the experts agree it's never too late to start saving.

To help your listeners/viewers/readers learn more about personal finance myths and what rules of thumb might make the most sense for them, talk with financial planners in your market who can explain how they design personal finance plans and goals for their clients, taking into account their specific circumstances and expectations for retirement. Showing a few examples can go a long way to helping people zero in on a plan that will work for them.

Sponsored by the National Endowment for Financial Education
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