>> Common Money Myths

*THE BEST WAY TO PAYOFF A HOME EARLY IS TO PAY EXTRA PRINCIPAL ON YOUR MORTGAGE

*HOME EQUITY IS A SAFE INVESTMENT

*HOME EQUITY IS LIQUID

*HOMES WITH A LOT OF EQUITY ARE LESS SUBJECT TO FORECLOSURE

*HOME EQUITY HAS A RATE OF RETURN

*ANY AND ALL DEBT IS UNDESIRABLE

*IF YOU HAVE AN ADJUSTABLE RATE MORTGAGE AND RATES GO UP IT IS BAD

*LOWER MORTGAGES, RESULTING IN LOWER PAYMENTS, MEAN LOWER COSTS

* BORROWING FUNDS AT A PARTICULAR INTEREST RATE, THEN INVESTING THEM AT THE SAME OR LOWER INTEREST RATE, HOLDS NO POTENTIAL GROWTH RETURNS

*EQUITY IN YOUR HOME ENHANCES YOUR NET WORTH

*THE AMOUNT OF EQUITY YOU HAVE IN YOUR HOME HAS NO BEARING ON HOW MARKETABLE IT IS

*TO AVOID CAPITAL GAINS TAX, YOU HAVE TO USE AS MUCH AS POSSIBLE OF THE CASH PROCEEDS FROM THE SALE OF A PREVIOUS RESIDENCE IN PURCHASING A NEW HOME.

*YOU MUST ALWAYS PAY CASH DOWN WHEN YOU PURCHASE REAL PROPERTY

*FINANCIAL SECURITY IS, TO A LARGE DEGREE, ACHIEVED WHEN YOUR HOME IS PAID FOR.

*YOU WILL BE IN A LOWER TAX BRACKET WHEN YOU RETIRE THAN WHEN EMPLOYED

* QUALIFIED PLANS SUCH AS IRAs, 401(K)s, TSAs, 403(B)s AND 457 PLANS PROVIDE THE MOST ATTRACTIVE RETIREMENT BENEFITS

*LIFE INSURANCE IS NOT A GOOD PLACE TO ACCUMULATE AND STORE CASH, AND IS A POOR INVESTMENT

*WISE INVESTORS CHOOSE INVESTMENTS THAT ACCUMULATE THE MOST MONEY

*HOME EQUITY CANNOT BE SAFELY BE USED TO SUPPLEMENT RETIREMENT INCOME