If you still aren't familiar with collective investment trusts, you should be — particularly since they're sufficiently misunderstood to give rise to a number of myths about their structure and use.

The province of qualified retirement plans, CITs are also known as commingled trusts or collective trust funds. Actually, they're pooled investment funds that are administered by banks and trust companies.

According to the Coalition of Collective Investment Trusts, CITs are "becoming as easy to use as mutual funds and may be a valuable tool in developing a retirement plan lineup," but for them to have value to you, you'll have to be able to separate the myths from the facts.

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