Best Business Commentary

People have enough money trouble without these “four financial myths,” says Marshall Loeb in MarketWatch. In the end, Alex Rodriguez was “simply not worth” more than $30 million a season, says Tom Van Riper in Forbes.com, “despite being the best player in

Debunking four financial fallacies

People have enough money trouble without these “four financial myths,” says Marshall Loeb in MarketWatch. So, four corrections: First, its no longer best to park your money in the local “brick-and-mortar” bank. Many “online savings/money accounts” offer 5 percent annual returns, rather than the local branch’s 0.2 percent. Second, don’t save for your kid’s college education rather than your retirement—there are many more options for funding college. Third, you always earn enough to save. And fourth, “overdraft protection” won’t save you from your bank’s “overdraft fees,” which earned banks $17 billion last year. “Wouldn’t you rather put that money in savings?”

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us