Money Fix: Financial planning myths

By SHERYL NANCE-NASHSpecial to NewsdaySeptember 3, 2012

When it comes to money, some axioms are myths. Something touted as wise isn't necessarily best for you. Look behind the curtain. Here are some examples:

At age 18 or 21, the child has a right to the assets, whether he or she is ready to manage them or not. A better strategy is to establish a basic living trust that benefits all your children, said Mary O'Reilly, a partner at Meltzer Lippe in Mineola.

Fully fund your 401(k) plan. It usually makes sense to fund a 401(k) up to the point you get an employer's match, but it's not always best beyond that.

Take those in low tax brackets. The tax "savings" from contributing to the 401(k) may be considerably less than what could be saved by paying down credit card debt, said Eleanor Blaney, a CFP Board consumer advocate.

Rules are convenient, but it doesn''t mean they're always right.

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NewsdayTV's Doug Geed is heading 'Out East' to showcase the ultimate local spots you need to explore. Credit: Randee Daddona, Michael A. Rupolo Sr.

Out East Show: Visit The Shamrock evergreen maze, Sannino Vineyard, Seven Ponds Orchard and the Warrior Ranch Foundation NewsdayTV's Doug Geed is heading 'Out East' to showcase the ultimate local spots you need to explore.

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