Believing and following myths can make or break your finances, which can result in many missed opportunities to make your golden years stress-free, including compound interest. It’s high time to turn away from such "guides" and differentiate reality from fallacy.

Roll over funds into a retirement account upon resignation. A holder can use the money deposited in his account at his disposal. For people age 55 and above, they can withdraw the money without paying penalty on the 401(k) in case they retire. On the other hand, for IRA holders who have not reached the age of 59 1/2, certain fees apply when they withdraw the funds from this plan. Citing these two examples, if you take the money and do not deposit it in an IRA or any other plans, you need to pay the taxes.

Account holders age 55 and below can put the money into his new 401(k) from the previous plan without incurring any fee. But plans have different prerequisites; hence, inquire about tax-free transfers. A person can also leave the funds in his 401(k) from his past employer.

A person cannot make traditional IRA payments if his current company provides a retirement plan. As per Internal Revenue Service, tax reductions for these payments may be limited according to his income if the employer offers 401(k).

Never touch the principal from any account or plan. Financial advisers often tell us never to use retirement savings. But in case of emergency, the money from there can be taken out. Just remember the Four Percent Rule which states holders should pull out no higher than 4% of their funds annually. Some gurus say 3%, referring to the economic condition today. It pays to track your spending and be prepared for the rainy days.

Payments are locked in until retirement years. No one is prohibited from withdrawing money but he has to pay charges or taxes. A person can also borrow from any plan but it must be paid back within a particular time period.

A retiree spends less. Financial advisers said a retiree should expect to spend around 85% of their working salary per year once they bid farewell to their job. Considering many factors and current financial situation, the actual retirement expenses may vary. A report by Fidelity Benefits show the average healthcare cost of a couple retiring at 65 was $245,000 in 2015.