Money Myths

Debunking Money Myths

As financial advisors, we often find that our clients fall victim to believing things about spending, saving, and investing money that simply aren’t true. Understanding these money myths, as well as the truth behind them, is vital to making better financial decisions that will benefit you and your family in the long run. In this blog post, we’re busting the top 4 money myths we hear from our clients.

Myth #1: All debt is bad debt

There is a huge stigma around the word “debt.” It has a bad reputation and is almost always looked at negatively, or as something that needs to be paid off ASAP. Those that have a lot of debt are often ashamed of it and sometimes are looked down on by others. However, not all debt is bad! Properly managed debt can even make you wealthier. Yep, you read that right!

Let’s break this down a little bit more.

  • Bad debt: Don’t get us wrong, some forms of debt are in fact bad for your financial situation. This is debt with high or non-deductible interest rates, such as credit card debt. You want to get this kind of debt taken care of and paid off as soon as possible.
  • Good debt: A properly structured mortgage or student loans are examples of good debt. Mortgage interest is tax deductible. Also, having a well-structured mortgage can keep more money in your hands, and as we always say, cash flow is king. Then there are student loans, which should be looked at as an investment rather than a cost. Controlled student loans that are amortizing can be extremely cost-efficient and valuable.

Myth #2: You should fund your retirement plan to the max

We spend a lot of our time and energy helping our clients prepare for a comfortable and enjoyable retirement. All too often, people come to us saying “I’m contributing X to my 401k, so I’ll be good for retirement, right?” Most of the time, there are better, more efficient ways to make sure you have enough saved for retirement than pouring your paycheck into a 401K. We believe with the right financial plan, you can enjoy your hard earned money now, and also have the retirement you want later.

When you put your money into a retirement plan, you lose control over it. It gets “stuck,” and you can’t get it out before a certain age without paying a hefty fee. On top of that, the government can change that age limit for withdrawal, which means if you were planning on receiving that money at age 60, and they bump the age up to 65, you would have to pay the fee to get your money back out. Our last note on this is that your retirement income doesn’t have to (and shouldn’t) solely come from a 401k. There are other options for income streams in retirement.

Myth #3: You need term life insurance

Term life insurance applies to a fixed time period (or term) with fixed payments over that term. At first glance, term life insurance may seem to be the most life insurance you can get for the least amount of money. In reality, though, it is the most expensive form of life insurance. Also, to really benefit from it, you have to die early (or before it’s over). When you look at it from that perspective, it doesn’t make a whole lot of sense to put your money in that bucket over other forms of life insurance.

Myth #4: You should compound your interest

When you let your interest on savings or an investment compound, it goes back into the original sum, which may seem like you are saving or investing more—but also means that you will pay more in taxes. You can avoid letting your interest compound by taking the interest and dividends and moving it somewhere else to pay down debt, make another investment, start or add to a wealth coordination account, etc. A wealth coordination account is actually specifically designed to capture new money that is saved or created from within the model (such as interest). When the interest doesn’t compound, then the tax doesn’t compound either, which can mean huge savings for you!

We hope we have “demystified” some of these common misconceptions about money. If you would like to learn more about these common money myths, how to keep your money moving, and how to have the retirement you’ve always wanted, check out our book, Your Retirement Smile. Everyone’s financial goals and needs are different, so you should always talk with a professional advisor to decide what the best move is for you, but educating yourself is a fantastic first step towards a bright financial future.

Need financial planning or wealth management advice? Worried about your retirement? Give us a call or visit our website to learn more and schedule an appointment with us!

Retired couple camping on beach

Don’t Let Poor Planning Take A Bite Out Of Your Retirement Adventures

Dentists and orthodontists juggle work, family and community responsibilities, with little time for a game of golf or planning for the future. When we ask dentists: “How do you expect to spend your money in retirement,” most answer “We are just going to live off the interest of what we’ve saved.”

The fact of the matter is nobody can live off the asset’s interest, whether it’s a CD or a savings account (typically generating 1-4%).  Example: If you have $1,000,000 and you are earning 2% on that investment, that’s generating $20,000 interest. Face it: That $20,000 won’t cover your living expenses…let alone a Tahiti trip.

Retirement Strategy: Solo Vs. Professional Help

According to U.S. News & World Report, running out of money is a retiree’s greatest fear. Retirement income replacement planning is key for savvy dentists and orthodontists who want to alleviate this fear. That’s why you need a good financial advisor who understands the dental and medical business.

At our firm, we work with dentists, orthodontists, and really any health professional to grow their income and diversify their financial products to include a mix of life insurance, disability insurance, structured equity and bond investments, annuities, business overhead insurance, retirement and long-term care plans.

Whether you’re near retirement or just starting your practice, now is the time to seek professional financial input and create your road to a happy retirement and ultimate financial success.

Invest Without Stress – Get Professional Help

Let’s say Dr. Jones is 60 years old, married and saved a nice nest egg.  Those funds have a lot of pressure on them. They have to provide income for BOTH he and his wife during their retirement l, which could extend 35 years.  And, if they want to leave some money to their kids, grandkids or a charity, it’s all coming out of their savings and earned interest.

If Dr. Jones is going at it solo or doing it himself, and the stock market fluctuates and interest rate changes as they always do, he has no control over how his investment will react. Add to that life or health changes requiring long-term care for he or his wife or runaway inflation, and you’ve got a heap of worry.

If Dr Jones has a 401 K plan and investments in place from years ago with the help of a financial advisor, he needs to re-evaluate that financial plan/investments and update it to reflect the current markets.

Many of our dentists look to retire or be in a position to retire at 60 or 62. Since that is relatively young, their savings have to last over a long period of time. Today’s standard recommendation for retirees is a 3-4% withdrawal rate off their entire nest egg, but with a 35 year projected life span, Dr. Jones and his wife could still run out of money.  If Dr. Jones has a million dollars saved, three years into retirement he may only have half that savings due to spending and market changes. Ask retired people that have lived through significant market downturns, like in 2008, it happens!

So ask yourself; Why should you take a 50% pay cut in retirement because you didn’t seek strategic, economically-sound financial advice from a firm such as ours?

What’s The Answer?

The first step is to evaluate where the dentist is today on the road to retirement and provide a personalized, strategic plan. Most dentists we initially see have only two or three sources of income (Social Security, a retirement plan and their dental practice).

We show them what they can expect if they continue with their current plan (or lack of one) and help them position their assets in a balanced way to provide them with significantly more income during retirement with the ultimate objective of full income replacement. Our basic approach?

  • Review all of the current financial products and their rates of return.
  • Create more efficient ways to manage their assets (retirement plans, investment accounts, savings, real estate and mortgages).
  • Compare different financial scenarios and market outlooks and customize their plan.
  • Create an exit strategy that doubles income in retirement at 7-8% distribution rates, not 3-4%.
  • Diversify all assets in a more strategic way by creating multiple streams of income that will include permanent life insurance, investments, real estate, and revise the retirement plans.
  • Factor in Social Security, interest or dividends on investments, spending down assets, rental income, charitable trusts, cryptocurrencies, collectibles and other ways to maximize income sources in retirement.


CPA and financial advisor, Tim Streid and orthodontist, Dr. Mart McClellan, are presidents of Macro Wealth Management, which is a firm that caters to the dental and medical professional. Utilizing a economically-based financial model to create short and long-term strategies for the future, they are the only dental-focused firm in America that uses this system and has a dentist on the team as an advisor.  Both are Registered Investment Advisors (RIA) and registered in multiple states in the areas of securities and life/disability insurance. They are authors of the new Forbes book “Your Retirement Smile: The Treatment Plan for Pay Cut Prevention in Your Golden Years.

For a free consultation with Macro Wealth Management, contact us at