Two others are about the magic formula of becoming wealthy by accumulating gold, and how dividend-paying stocks are the ultimate money-making vehicle for personal portfolios.

It's never a good idea to make financial moves based on incorrect data. The smart approach is to study all your options by doing in-depth research on the kinds of investments that interest you most. After spending time exploring all the possibilities and evaluating the various selections, consider putting your money to work for you and maximising your long-term returns. Here are more details about the common money and wealth-related myths.

1. Real Estate Is Out Of Reach For Most Individuals

For more than a century, far too many people have fallen for a host of myths and fallacies about real estate. The list is a long one, but it includes several that directly relate to personal finance. Chief among the misinformation is that real estate is just too pricey for the vast majority of individuals. In fact, real estate can be one of the most profitable income-producing assets in a person's portfolio. Over the long haul of multiple decades, the two most beneficial ways to build personal wealth are through real estate and the stock market. Since the early 1900s, it's been simple to purchase stock, but the same can't be said for property. 

However, recent changes in the way the real estate market is structured have changed that. Today, anyone, even those who only have $100 to invest, can take part in real estate investing via fractional shares and REITs. No longer are equity stocks the top choice among people who want the security of long-term, stable investments. The best way to get started is by learning all the facts about how investing in real estate measures up to traditional corporate stocks. In today's challenging economy, it's imperative for people to learn all they can about real estate vs stock market returns and how to make the most of every financial opportunity.

2. Investing In Gold Is The Secret Formula

Gold can be a smart way to diversify a portfolio, but it's almost never wise to put the bulk of one's investments into the yellow metal. Contrary to hundreds of online and television advertisements, gold is not a secret or guaranteed way to earn short or long-term profits. It has a few unique qualities and can perform well in weak economies, but during good times, it's not such a wonderful place to park capital. As of late, there has been a valid argument made regarding investing in gold vs bitcoin that is worth your time and research as well. 

3. Dividend Stocks Are Guaranteed Winners

The current preference among investors for aristocrat shares is based on a misconception. That's not to say that the aristocrats are not excellent additions to certain portfolios. The myth is about the promise of these long-term dividend payers to generate a significant amount of income. The corporations in the category can and do pay regular percentages of their income to shareholders regularly. But they don't always perform well or offer the best opportunities compared to other kinds of stocks and commodities.

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