When it comes to traditional advice about saving for retirement or building up a nest egg, many of us have been inundated with harmful habits and beliefs. I know this because I have had to confront and debunk many of my own beliefs. These beliefs and norms can be incredibly destructive and can block you from building wealth.
"You should save all of your excess money." This is a huge financial myth that we urge you to challenge. Traditional savings accounts generally have very low interest rates. And thanks to inflation, you're basically losing money if you're squirreling it away in a savings account.
"You should automate your savings contribution in order to build your account balance." We aren't saying this is an inherently bad idea, but if it's your primary means for building wealth, you're not getting ahead of the game. It's fine to put away some money each month, but that's no way to build true, lasting wealth.
"You should never touch your 401k, under any circumstance." If you've been led to believe that the 401k is the ultimate retirement plan, you've been lied to. If you've been told you should under no circumstances touch your 401k, you've also been lied to. We urge you to challenge those beliefs, take a look at the numbers, and assess what can happen if you take a loan from you 401k to purchase a performing asset.
"Mutual funds are the best way to invest." A mutual fund is just a collection of stock, and it's ultimately something you have no control over. In comparison with a cash flowing asset like a rental property, a mutual fund has far less to offer.
"Paying high taxes is inevitable." The tax code actually favors business owners and investors, so if you learn how to play the game correctly, you can mitigate your overall tax burden.
If you’re ready to start challenging these financial myths and build real wealth through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.