10 Financial Urban Legends

Category: Financial Planning

Every once in a while, I get a call from someone saying they had heard "income tax is illegal" or "revocable trusts avoid taxes" or other such things that are just untrue. Here is a list of "10 Financial Urban Legends" from msnmoney.com - things that just aren't true. A basic rule of tax law is that "fat pigs get slaughter....so don't be a pig", which is another way of saying the old adage that if something looks to good to be true, it probably is. So if you get an email about one of these, hit "delete" please, not "forward".


Myth No. 1: You can float a check longer if you write in red ink.
Myth No. 2: You don't have to pay income tax -- it's illegal.
Myth No. 3: I'm under 18, so I can't be held accountable for a debt.
Myth No. 4: My hotel key card has my credit-card information.
Myth No. 5: Boycotting a few gasoline brands brings gas prices down.
Myth No. 6: It's better if you don't sign the back of your credit card.
Myth No. 7: You can make a pile of dough by helping a foreigner solve his money problems
Myth No. 8: You can now opt out of having credit bureaus give your information to anyone who asks.
Myth No. 9: You can buy your way out of points on a speeding ticket.
Myth No. 10: Hotel Bibles often have $100 bills tucked into them.