By Patricia Dubois
Our advisors often hear preconceived ideas from investors. We demystify fact from fiction in our series on myths and realities in finance.
Investors often have preconceived ideas, which they convey to those around them and which sometimes reach the ears of their advisors.
In this series of articles on myths and realities in finance, we will try to disentangle the truth from the false about what our advisors hear in the practice of their profession.
Here are 8 myths that often circulate:
Investing costs nothing! – Do you believe that investing in a mutual fund costs nothing? Find out what it is.
Investing your money in a bank is safer – Does entrust your assets to a bank guarantee the absence of fraud?
If I withdraw RRSPs in retirement, my pension will be reduced! – Will receiving part of your RRSP at retirement reduce the pension paid to you by the government? Here is what it is.
We need to replace 70% of our retirement income! – Is this figure of 70% the target to be reached?
Taking RRSPs is useless because, when you retire, you will pay taxes when you withdraw! – See why it can be advantageous to contribute to your RRSP…
A TFSA does not pay! – Actually, it depends on how you invest your money… Here’s why.
When I die, my children will sell my house to pay the final expenses – Do you know the costs incurred by your death? Think about it before it’s too late not to embarrass your children.
If I die, everything will go to my spouse. We’ve been together for 30 years! – In Quebec, the Civil Code applies, so remember to make your will so that your spouse does not have any unpleasant surprises.
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