Fact vs. Fiction Archive

Fact vs. Fiction Archive:

  • Fiction: Estate planning is only for affluent individuals.
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  • Fiction: By letting my adult kids live with me, I'm helping them become financially independent.
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  • Fiction: Tax rates are the same no matter how many days I rent out my vacation home.
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  • Fiction: Off-campus housing is the most budget-friendly option for college students.
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  • Fiction: When evaluating a job offer, salary is what matters most—nothing else really affects whether I come out ahead financially.
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  • Fiction: I only need to review the terms and conditions of my credit cards once—when I open the account.
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  • Fiction: When I donate to my favorite charity, writing a check is the best gifting strategy.
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  • Fiction: Owning a second home is no different than owning one property—the costs are the same.
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  • Fiction: Booking a vacation will derail my budget and savings goals.
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  • Fiction: Giving back always means giving to charity.
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  • Fiction: Investing in a charitable gift annuity offers me a guaranteed return.
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  • Fiction: There's no long-term effect if I use a little bit of my retirement savings to establish an emergency fund.
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  • Fiction: If I inherit a house, the tax implications are the same no matter what I do with it.
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  • Fiction: Taking a loan from my retirement plan is not a big deal—I can always fund my retirement later.
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  • Fiction: When choosing a mortgage, my best option is the one with the lowest rate.
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  • Fiction: A social security number will be canceled and changed once it's reported stolen.
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  • Fiction: The IRS may reach out to you by e-mail to request information.
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  • Fiction: Providing financial support to young adult children now will help them achieve financial independence later.
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  • Fiction: Having a strong password is enough to keep my confidential information safe.
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  • Fiction: If you don't use all the money in your flexible spending account (FSA) by year-end, it will be forfeited.
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  • Fiction: Mortgage prices don't fluctuate much during the week.
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  • Fiction: Waiting to file your taxes won't make you more vulnerable to identity theft.
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  • Fiction: Providing financial support to my adult child is a good idea since there are no taxes on the amount I give.
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  • Fiction: There is no difference between a mortgage lender and a mortgage broker.
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  • Fiction: Inheriting a house is always a financial gain.
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  • Fiction: If you are short on time, there is no use trying to plan a budget-friendly vacation.
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  • Fiction: If my cleaning person gets hurt while in my house, I am not responsible for paying for her injuries.
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  • Fiction: A prepaid tuition plan and a college savings plan are the same thing.
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  • Fiction: Students can get more financial aid by hiring someone to do the research for them.
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  • Fiction: Work-study programs hurt students' academics.
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  • Fiction: The FAFSA form is too confusing to fill out.
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  • Fiction: Most schools are willing to negotiate financial aid awards.
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  • Fiction: Because of the risks of college savings plans, I should use a prepaid tuition plan for my children's college education.
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  • Fiction: There's no way a financial windfall could be stressful. After all, it's more money!
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  • Fiction: As a new graduate, I don't need to start thinking about retirement.
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  • Fiction: "Going green" for banking and bill payment will put me at high risk for identity theft.
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  • Fiction: Private colleges are out of reach for my family.
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  • Fiction: Financial planning is all about planning for retirement.
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  • Fiction: Any recent college graduate can defer or forebear his or her student loans.
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  • Fiction: I'm too young for financial planning.
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  • Fiction: When students receive financial aid, the entire award package must be accepted.
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  • Fiction: Financial advisors only help people with investing.
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  • Fiction: Students shouldn't indicate that they are applying for aid on the admission application.
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  • Fiction: I can't become an entrepreneur at my age.
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  • Fiction: If I receive an inheritance, I can quit my job.
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  • Fiction: Organizing my financial documents isn't worth the time.
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  • Fiction: Once I hire a financial planner, I don't need to do anything.
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  • Fiction: I should always buy car rental insurance when renting a car.
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  • Fiction: It's too early to start talking to my parents about their finances.
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  • Fiction: Once I hit age 62, I should immediately begin receiving social security benefits.
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  • Fiction: My kids are too young to start learning about finances.
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  • Fiction: If I'm not happy with the new terms of a credit card, I should close it as soon as possible.
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  • Fiction: Once the school year starts, it's too late to apply for financial aid.
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  • Fiction: No one would want to steal my child's identity, so I don't have to worry about it.
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  • Fiction: The government decides who receives financial aid.
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  • Fiction: Getting downsized would mean the end of my financial stability, and there's nothing I can do about it.
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  • Fiction: Financial planning is for the wealthy.
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  • Fiction: I don't need to budget because it's just not necessary.
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  • Fiction: There's no reason for me to get disability insurance.
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  • Fiction: College savings prevent students from qualifying for financial aid.
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  • Fiction: I have enough insurance, and besides, I won't need it until I'm older.
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  • Fiction: I can't afford professional financial advice.
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  • Fiction: It will be simple to pass my business onto my family so they can continue to grow my legacy.
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  • Fiction: Financial aid is only for very smart or poor students.
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  • Fiction: Once you reach retirement age, you'll be done working for the rest of your life.
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  • Fiction: Investing in art is a good way to get rich.
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  • Fiction: When you donate money to charity, all of it goes directly to the cause you support.
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  • Fiction: Only old people need life insurance.
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  • Fiction: A trust automatically avoids probate.
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  • Fiction: "Buy and hold" should be the only maxim investors live by.
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  • Fiction: I've got plenty of time to save for retirement until later in life—it can wait.
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  • Fiction: Only people with a lot of money or other assets need financial plans.
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  • Fiction: The only way I'll qualify for Medicaid is if I give away enough of my money.
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  • Fiction: A will covers everything.
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  • Fiction: I would be better off buying term life insurance (rather than whole life) so that I can invest the difference.
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  • Fiction: I can handle my finances on my own.
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  • Fiction: We won't qualify for financial aid because we have money and assets saved for our child's college education.
    Get the Facts...


These materials have been provided for general informational purposes only and do not constitute either tax or legal advice. For additional information, please consult your tax professional.


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