Business

October is the month in which goblins, ghosts, and other frightening things are thematic for all 31 days, closing the month with Halloween. As a retirement planner, I would like to share with clients and readers some financial myths that, if you are tricked into believing them, can haunt you for a long time.

If you are age 701/2 or over and own either a traditional IRA, 401(k) plan or other employment-based savings plan, you are usually required to withdraw a certain amount of money each year. These withdrawals are minimum required distributions (MRD), or what can also be referred to as required minimum distributions (RMD). For consistency purposes, I will refer to them as minimum required distribution (MRD). MRD is usually taxable income, so if you made after-tax contributions to these accounts, part of your minimum required distribution may be nontaxable.

Walk into a bank or a typical stock brokerage firm and the only advice you may get is centered on purchasing the favorite stocks of the day. There are few—if any—questions asked about your present financial situation and financial future. This is how brokers earn a living: the more stocks you buy and sell, the higher the commission your broker earns. This business model is known in the industry as “suitable”.

Everything is going digital. There are even companies that sell a suite of services called “robo-advisors” that offers subscribers a “low-cost, algorithm-derived, passive strategic asset allocation.” Service providers claim that using their technology platform, investors no longer need to use a financial advisor.

Everyone knows that being financially responsible means spending less than you earn. Being financially responsible isn’t a secret, but how to get there may be a secret to you.

So, when cupid calls, and a wedding is the response, one vow is “for richer or poor.” But, did you know that most marriages that run into difficulties or even divorce have money as the root cause of their problems.