Some financial advice is so oft-repeated that everyone takes it for granted: You shouldn’t bring debt into retirement. Debit cards are safer than credit cards. Older folks should invest more conservatively. As they used to say on Seinfeld, yadda yadda yadda.

The problem is, a lot of that is bad advice. At best it fit a bygone era; at worst it was never right and is dangerous.

Here is a list of my least favorite financial chestnuts.

  • “Don’t take a mortgage into retirement with you.” That may have made sense when interest rates were high, but even after recent hikes mortgage rates are still close to their historic lows. Anyone who refinanced in recent years is probably paying less for that money than they will on any other loan they could get now or ever again in the future.

Read More…


  1. I have to admit i have committed all the sins mentioned.

    I guess this means i am in a disastrous shape 🙁

  2. The simplest advice for everyone is to invest into secure stocks for the long term. History shows that the longer they are in the better they perform relative to other investments.

  3. I assume 401(k) is equivalent to RRSP here in Canada?

  4. Laughed when i read the popular myth that debit card is safer than credit card.

    If you just think about it you realize that credit card is a much better approach since you dont pay any interest or anything for 25-30 days (grace period) and if you pay the entire balance to $0 each month then it was free money.

    Debit cards always hit you with a fee.

    Seems silly to work your money on someone else’s dime.

  5. I never understood why most people don’t take advantage of the Smith Maneouvre when dealing with mortgage.

    We did so and it has allowed us to free up from debt much faster with relative ease. Read about it!

  6. I wish i read this column 5 years ago 🙁

  7. Most people think getting a college degree amounts to something useful.

    I have an engineering degree and it still didnt land me a job for 2 years.

    Build your worldly experience in your preferred profession and skip cash cow business machines like university is what i learned.

  8. Avoid real estate. We are so in a bubble right now especially here in Vancouver. It’s going to collapse any day now.

  9. I say pray and be good to your friends and everything will always work out in the end financially.

Leave a Reply

Your email address will not be published. Required fields are marked *