Financial advice is everywhere on social media, podcasts, and late-night internet searches. The problem isn’t a lack of information; it’s separating fact from fiction.

Research shows 90% of people want to build wealth, yet 45% admit they don’t know where to begin. At the same time, nearly half of those with a financial plan say they live more comfortably and feel more confident about their future.

The difference often comes down to understanding what’s true, what’s misleading, and what actually moves the needle for retirement security.

Here are some of the most common financial myths and the facts behind them.

1) Fiction: “I’m Too Young to Invest”

Fact: Starting earlier dramatically reduces how much you need to invest later.

A classic example shows two investors contributing the same annual amount. The one who starts earlier even for fewer years can end up with more wealth thanks to compound growth. Time in the market consistently outweighs timing the market.

The takeaway: Even small contributions in your 20s and 30s can create meaningful retirement wealth.

2) Fiction: “Small Amounts Don’t Make a Difference”

Fact: Consistency matters more than size.

A modest daily expense, if redirected into investments, can compound into six figures over time. The point isn’t to eliminate every small luxury it’s to recognize that repeated, automated investing builds momentum.

Incrementally increasing contributions as income rises can have a powerful long-term impact.

3) Fiction: “The Stock Market Is Too Risky, Cash Is Safer”

Fact: Inflation makes cash risky over long periods.

Historical data shows diversified portfolios have produced meaningful long-term returns, while average investors often underperform due to emotional decisions like panic selling or buying at market peaks.

A disciplined strategy and periodic rebalancing typically outperform reactive investing.

4) Fiction: “Social Security Isn’t Taxed”

Fact: Social Security can be taxable depending on income.

Taxation is based on provisional income, which includes modified adjusted gross income plus half of Social Security benefits. Depending on thresholds, up to 85% of benefits may be subject to tax.

Strategic withdrawals and Roth planning can help reduce this tax burden.

5) Fiction: “Claiming Social Security Early Doesn’t Matter”

Fact: Timing has a major impact.

Claiming at 62 can permanently reduce benefits, while delaying up to age 70 can increase payouts through delayed retirement credits. For many retirees, a higher guaranteed benefit later can provide more lifetime income and better survivor protection.

The right choice depends on health, cash flow, and tax strategy.

6) Fiction: “Medicare Caps Your Out-of-Pocket Costs”

Fact: Original Medicare has no out-of-pocket maximum.

Without supplemental coverage, retirees can face unlimited exposure to medical costs. Studies estimate a typical retired couple may spend over $300,000 on healthcare in retirement, excluding long-term care.

This is why many retirees consider Medigap or Medicare Advantage plans.

7) Fiction: “HSAs Are Just Savings Accounts”

Fact: HSAs can be powerful investment tools.

Health Savings Accounts offer a rare triple tax advantage: tax-deductible contributions, tax-deferred growth, and tax-free withdrawals for qualified medical expenses. Funds can be invested, not just held in cash.

However, contributions generally stop once enrolled in Medicare.

The Bigger Lesson

Financial success rarely comes from secret strategies or lucky stock picks. It comes from understanding fundamentals, starting early, and sticking with a plan.

Separating fact from fiction helps investors avoid costly mistakes and focus on what truly builds long-term security.

Retirement planning doesn’t require complexity but it does require clarity.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.