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Re: Suze Ormans portfolio
Old 03-13-2007, 12:48 PM   #21
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Re: Suze Ormans portfolio

Quote:
Originally Posted by Moemg
I agree she can do what she wants with her money but she tends to preach the same philosophy to others .
She probably does to any of her listeners who have $25 million.

Ha
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Re: Suze Ormans portfolio
Old 03-13-2007, 01:38 PM   #22
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Re: Suze Ormans portfolio

Quote:
Originally Posted by Bikerdude
Yeah with Muni's she's dodging State & Federal taxes. I don't know how AMT would affect her though. I think with that much money she could get closer to 4% yield or almost a mil per year.

I think it was John Jacob Astor that said " A man with a million dollars is as well off as if he were rich" I think he said that in 1910.
You would need an avg maturity of 20 years, but with insureds you could be over 4% as of right now.

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Re: Suze Ormans portfolio
Old 03-13-2007, 01:46 PM   #23
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Re: Suze Ormans portfolio

Oh I'd bet that Buffett, Gates, Soros and others on the Forbes list maybe have a little more than equities than 4% of their portfolios.

I'm not near as well read as most on this forum, but isn't a portfolio this high in bonds actually more risky than one that is closer to 50-50 stocks & bonds ? such as the couch potato portfolio that Scott Burns advocates ?

It's none of my concern what she does, I just wouldn't want to see someone follow what she is doing thinking it is best for them too.
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Re: Suze Ormans portfolio
Old 03-13-2007, 01:51 PM   #24
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Re: Suze Ormans portfolio

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Originally Posted by saluki9
Wealth maximization isn't the point here. Going from 99% insured muni's to 40% equities What a lot of people in this situation do is split the money into two pots (I'd be forced to vomit if the word "buckets" was used again here)
Saluki-

Personally, I find a bucket to be very usefull when vomiting.

Have a great day!

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Re: Suze Ormans portfolio
Old 03-13-2007, 01:55 PM   #25
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Re: Suze Ormans portfolio

I don't mean to be naive, but I wonder how she accumulated all that money. She came from a blue collar background so it wasn't inherited. Are those books and TV programs THAT lucrative??



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Re: Suze Ormans portfolio
Old 03-13-2007, 02:27 PM   #26
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Re: Suze Ormans portfolio

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Originally Posted by ScaredtoQuit
I don't mean to be naive, but I wonder how she accumulated all that money. She came from a blue collar background so it wasn't inherited. Are those books and TV programs THAT lucrative??
Yes. Somebody in her position probably gets around $50K to $75K for an appearance and speech. On top of that she does seminars where she can get hundreds or thousands of people in a weekend paying to get in. On top of that, even if she's getting only $1 a book, she has sold millions of them.

This proves once again something that personal finance write Terry Savage said about this business (and why she left her seat on the CBOE) That you can make more money talking about money than you can investing.

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Re: Suze Ormans portfolio
Old 03-13-2007, 02:28 PM   #27
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Re: Suze Ormans portfolio

Quote:
Originally Posted by ScaredtoQuit
I don't mean to be naive, but I wonder how she accumulated all that money. She came from a blue collar background so it wasn't inherited. Are those books and TV programs THAT lucrative??
Answer.... YES...

Look at Rowling... over $1 billion writing a 'few' books... (well, the movies might have helped )
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Re: Suze Ormans portfolio
Old 03-13-2007, 02:35 PM   #28
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Re: Suze Ormans portfolio

see also: Kiyosaki

Quote:
Originally Posted by ScaredtoQuit
I don't mean to be naive, but I wonder how she accumulated all that money. She came from a blue collar background so it wasn't inherited. Are those books and TV programs THAT lucrative??
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Re: Suze Ormans portfolio
Old 03-13-2007, 07:53 PM   #29
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Re: Suze Ormans portfolio


- Maybe after you'd worked for a stock brokerage firm and had an inside you would avoid stocks too?
- Muni bonds are good tax shelters above a certain income tax rate.
- She might need the money soon or waiting for a market correction?
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Re: Suze Ormans portfolio
Old 03-13-2007, 07:58 PM   #30
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Re: Suze Ormans portfolio

No one has mentioned if this has ALWAYS been her financial strategy Don't know how, but maybe. Curious how she invested 10-15 yrs ago?
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Re: Suze Ormans portfolio
Old 03-13-2007, 08:24 PM   #31
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Re: Suze Ormans portfolio

Do you guys think that her advice is good ?
She was just a "salesperson" for merril lynch isnt that the same people your always say are just blood suckers ?
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Re: Suze Ormans portfolio
Old 03-13-2007, 08:30 PM   #32
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Re: Suze Ormans portfolio

From what I have heard of it, no.

Don't mistake me suggesting her portfolio allocation makes sense with me supporting her advice to others
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Re: Suze Ormans portfolio
Old 03-13-2007, 08:45 PM   #33
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Re: Suze Ormans portfolio

Quote:
Originally Posted by HaHa
I guess when you have $25 million you can follow your advice. Meanwhile, since she has it she gets to do what she wants with it.

Ha
Yeah. So far, Suzy hasn't asked me what I think she should invest in. I'm not sure what I would do if I had $25M. Since I don't expect I'll ever have to worry about it, I won't spend too much time figuring it out either.

Another aspect of the muni's is that they tend to be free of state taxes.
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Re: Suze Ormans portfolio
Old 03-13-2007, 09:58 PM   #34
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Re: Suze Ormans portfolio

96% of her assets in zero coupon Muni bonds, that is one ridiculously risky asset allocation, there is zero inflation hedge. German bond holder suffered a 99.999+% loss on their investment in 1922-23 during hyperinflation, Japanese bond holder lost more than 95% right after WWII. Similar losses (although less dramatic) have been seen by bond holder in Latin America countries, Russia and I believe other Eastern European countries. Even in developed countries a prolong period of high inflation devastates bond holder. For example British bond holders lost more than 1/2 their value in the late 60s through the mid 70s and US bond holder didn't fair much better. A decade of 15% inflation will put Suze's net worth down to 6 million.

Now if she had a large junk of her assets in TIPs, along with some international bonds, REITs, and modest stock allocation of say 20% she'd be a lot smarter.
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Re: Suze Ormans portfolio
Old 03-13-2007, 10:06 PM   #35
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Re: Suze Ormans portfolio

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Originally Posted by clifp
96% of her assets in zero coupon Muni bonds, that is one ridiculously risky asset allocation, there is zero inflation hedge.
I missed where the article specified her duration. Could you fill me in on that?

Ha
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Re: Suze Ormans portfolio
Old 03-13-2007, 10:20 PM   #36
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Re: Suze Ormans portfolio

Honestly I don't know what the duration of her portfolio is. However, in general zero coupon muni tend to have a long duration ,(10+ years) especially if purchased when issued. For example reviewing Schwab list of zero coupon there were only 40 under 5 years and about 400 with a maturity in the 6-30 year range, among new issues only 1 was for 5 years the remaining 13 were 8 to 35 years in duration.
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Re: Suze Ormans portfolio
Old 03-14-2007, 11:22 AM   #37
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Re: Suze Ormans portfolio

Quote:
Originally Posted by perinova
- Maybe after you'd worked for a stock brokerage firm and had an inside you would avoid stocks too?
Um............no!
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Re: Suze Ormans portfolio
Old 03-14-2007, 11:31 AM   #38
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Re: Suze Ormans portfolio

Seems that she is trying to minimize taxes here... she is probably making a lot of money....

But, if her duration is short for the whole portfolio.. then it is more strange than before...

And to me, a bad investment portfolio is bad no matter how much you have.... and what if her cost of living is 'high' also... if she has $25 mill and spends $1 mill a year... isn't that the same as someone with $2.5 mill and spending $100K per year??
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Re: Suze Ormans portfolio
Old 03-14-2007, 11:41 AM   #39
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Re: Suze Ormans portfolio

Quote:
Originally Posted by HaHa
I missed where the article specified her duration. Could you fill me in on that?

Ha
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Re: Suze Ormans portfolio
Old 03-14-2007, 01:28 PM   #40
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Re: Suze Ormans portfolio

Quote:
Originally Posted by Texas Proud
.... and what if her cost of living is 'high' also... if she has $25 mill and spends $1 mill a year... isn't that the same as someone with $2.5 mill and spending $100K per year??
Y'all seem to be forgetting about her other sources of income i.e her TV show, book and software sales, appearance fees. I doubt she needs to have her portfolio provide any income, hence the zeros.
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