If you listen to some of the financial talk shows on television and radio, it’s easy enough to get lots of free advice. However, programs on mainstream media don’t always vet their suggestions and discussions. That’s how myths and misinformation work their way into the public discourse. While most of the top-rated shows do a fine job of fact checking the personal finance information they discuss, far too many urban legends and other falsehoods make their way into the mix.

What are the current offenders that have the potential to confuse and mislead consumers? In addition to all sorts of misconceptions about investing in gold, you’re apt to hear incorrect information about cosigning on college loan refinancing agreements, storing cash for a rainy day, self-employment tax, and who can benefit from financial planning. Here are the pertinent details about the top myths, along with the necessary corrections.

Buying Gold is Always a Smart Investment Move

Buying and holding gold is usually not a good move. Gold devotees like to praise the fact that the metal’s price tends to rise when the stock market sags. That’s generally true, but nowhere near a strong enough argument to support the buying and holding of gold. While any commodity can rise or fall in price, such is the case with gold. It is not a magical or unique investment vehicle.

Student Loan Refinancing Agreements Don’t Allow Cosigners

Every year, thousands of adults cosign on a college grad’s loan refinancing agreement. One of the most effective ways to cut monthly payments on college loans is to refinance outstanding obligations. Unfortunately, to get better rates on such an agreement, recent grads need to have a positive financial history and good credit scores. Of course, many young adults who are just starting their careers don’t have enough of a payment history to show up on the radar of the big credit bureaus.

That means they can’t take advantage of refinancing opportunities unless they have a cosigner. Anyone who has good credit and is willing to back up the promise to make payments on the new agreement can serve as a cosigner. It’s a smart and helpful way to assist young people with their financial goals, like paying off their debts, saving more money each month, and establishing themselves in a financially rewarding career. Before cosigning, make sure you understand all the pertinent facts about the process, including what to do if your credit needs a bit of a boost. The bottom line is that cosigners can completely change a young person’s life for the better.

Stashing Cash is a Clever Ploy

Packing currency away in safe-deposit boxes, home vaults, and elsewhere is a fast way to lose money. There’s nothing wrong with having a mad money stash of a couple hundred dollars. But anything more than that leaves you susceptible to the ravages of inflation. Cash in a safe-deposit box or wall safe does not earn interest. Plus, any money you store at home is a prime target for thieves. Be careful about storing large sums of currency or jewels in your home. Finally, don’t forget about the risk of losing paper money in a house fire, an unfortunate situation that occurs all too often.

Financial Planning is for Wealthy People

Working adults of all income levels can grow their net worth with financial planning. Financial planners are professionals who work for corporations, government agencies, or themselves. No matter your income level, call a local CFP (certified financial planner) and ask what they charge for a standard half-hour consultation and basic budgeting plan for individuals and families.

While rates vary a great deal, you’ll probably be surprised at how affordable they are. There was a time, generations ago when only those who hired professional planners were wealthy clients. Those days are long gone. Today’s experts work with everyday working people who need guidance with how to set up retirement accounts, save more for a specific goal, or just develop a detailed monthly budget.

John Mali Director of Media Relations

Director of Media Relations at AboutBoulder.com

john@aboutboulder.com